Question

Received a cheque from ABC and Co. to whom goods were sold for Rs.20000 and allowedthem1% discount. The cheque isn’t deposited into Bank. what is the journal entry

Answer 1

Answer:

"cheque received but not deposited" , the cheque will be treated as CASH instead of BANK.

that's it.

Cash ac _dr 19800

Discount Allowed ac _dr 200

To sales ac 20,000

(being the cheque received from ABC & Co. , not yet deposited into bank.)

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