Question

Received a cheque from M/s Roy and co. for Rs 3,275 in full settlement of Rs. 3300 and sent to the cheque to the bank.

Answer 1

Answer:

By Bank a/c Dr 3275

By Discount allowed a/c Dr 25

To M/s Roy and co a/c. 3300

Explanation:

This will be the compound entry for the given transaction.As ₹3275 is received as full settlement the business allowed a Discount of ₹ 25 discount.