Question

Q no 28
Received Cash from Shyam in full settlement of his account 1950

Answer 1

Journal Entry

Cash   A/c                         Dr   1950

Discount Allowed A/c     Dr        50

          To Shyam A/c                                     2000

(Being received Cash from Shyam in full settlement of his account )

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Reason:

Cash comes into the company therefore its debited

discount allowed is the expense to the company therefore its debited

Shyam is the debtor who pays the money therefore its credited

Answer 2

Answer:

cash a/c ------ DR

discount a/c-------dr

to Shyam a/c