Question

received from jadu cash rupees 8,100 and 9,900 after allowing him cash discount 10%, the cheque deposited to the bank for collection.
Solve this ​

Answer 1

Answer:

Cash 8100 Dr

Bank 9900 Dr

Discount allowed 990 Dr

Jadu 18990 Cr

Explanation:

• Receiving cash indicates that Jadu is your customer (You sold goods to him)

• Cash discount is recorded in books hence there will be an entry of it as well. Discount allowed is an expense, which has debit nature, because it reduces firm's profit.

Keys:

Dr = debit

Cr = credit

Hope it helps :)