Question

received a cheque of from rakesh 9500 in full settlement of his account cheque deposited in bank on the same day 2015 april 7​

Answer 1

Bank a/c dr. 9500
To rakesh a/c. 9500

Answer 2

Bank A/c                            Dr. 9,500

Discount Allowed A/c     Dr. (Rakesh A/c - Bank)

     To Rakesh A/c                        (Full Amount )

Explanation:

The full account of Rakesh which was debited before will now be credited because Rakesh has paid off his share and is not liable to pay anymore.

We received 9,500 in our bank and the difference between what was promised and what was received is written down in discount allowed a/c as there is a full settlement in this case.

Bank A/c                                                 Dr.            9,500

Discount Allowed A/c                            Dr.            (Rakesh A/c - Bank)

            To Rakesh A/c                                                          (Full Amount )