Question

Received cash from ram rs. 400 discount allowed rs. 20

Answer 1

Cash A/c Dr. 400

Discount allowed A/c. Dr. 20

To Ram. 420

Answer 2

The Answer is given below. Hope it will help you.

Explanation:

The journal entry for this transaction will be :

   Cash A/c Dr.         400

Discount allowed Dr.  20

                  To Ram A/c     420

We have debited the cash account with rs 400 as we have received rs 400 .

Discount allowed is our expenses so we debited discount allowed account with rs 20. Ram account is credited with rs 420 as we have received this cash from ram.