Question

Received cash from Kavita in full settlement 9200​

Answer 1

Cash received from Mohan in full settlement of his account

The journal entry would be as follows:

Cash a/c dr

Discount allowed a/c dr

To Mohan’s a/c

Cash is real a/c and comes in so debited

Discount allowed is expense and nominal a/c so debited

Mohan was the asset (debtor) before but now cash is received so credited