Question

Received from Hari and allowed him discount, identify which is cr and Dr?

Answer 1

Bank and discount allowed will be debited and Hari will be credited

Answer 2

3 golden rules

• debit the receiver , credit the giver

•      debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Hari A/c - Personal account , where hari is the debtor who is the giver , therefore its credited

Cash A/c- Real A/c , money comes into the company therefore its debited

Discount allowed - Nominal A/c , its a expenses or loss to the company therefore its debited