Question

received from akhil 38000 in settlement of his dues of 40000 in cash,inthis 2000 is a discount or bad debts and why?explainit.​

Answer 1

Answer:

Akhil who is a debtor, will credit is creditor account by 38, 000 and debit his creditor account by 2000, while on the hand the creditor will debit hids debtor account by 38000 and credit his debtor's account by 2000, it should be noted the person who lends money is the creditor and the person who receives money