Question

Received from hari and allowed him discount. Post them to ledger account

Answer 1

So by total receivable =×××××× (1)

actual amount recieved = ××××××(2)

Discount allowed= (1) -(2)=xxxx

So the current transaction affects three accounts...

Discount allowed account(Discount allowed to an extent ,cash account(amount to an extent of xxxx is recieved in the form of Cash), poonam account(hari owes us money and she z paying back)...

Discount allowed account is a nominal account (coz its a loss to us ; all losses Gains income expenses come under nominal account)

hari account is a Personal account (as the name suggests)

Bank account is a real account.(Bank balance is an asset ; all assets and Liabilities come under Real account)

The Three golden rules of accounting are..

Personal account - Debit the receiver ,credit the giver

Real account - Debit what comes in ,credit what goes out

Nominal account - Debit All expenses and losses credit , All incomes and gains

Discount allowed and Bank accounts are to be debited..(expense ; money is comingin)

hari account should be credited (hari is giving/the giver)

So the Journal Entry will be...

cash a/c Dr xxxxx

Discount Allowed a/c xxxxx

To hari a/c. xxxxx

(Being Hari 's account settled)


ledger accounts to be created are...

cash , Discount allowed,hari..

in "cash a/c"

(To hari a/c ) on the left side of the account....


in "Discount allowed a/c"

(To hari a/c ) on the left side of the account....



in "hari a/c"

(By Discount allowed a/c

By cash a/c ) on the right side of the account....

Answer 2

Answer:

Cash A/c Dr.

Discount A/c Dr.

     To Hari A/c                                                                                                              

Explanation: