Question

Received from krishna 12,500
Allowed him discount. 500

Answer 1

Answer:

cash A/C dr-12500

disc allowed a/c dr-500

to krishna a/c-13000

Explanation:

being cash received from krishna thus it should be credited because of personal a/c

cash comes in real a/c so debit what comes in and disc allowed is an expense for us and by nominal a/c it should be debited

Answer 2

Krishna's account will be credited and the cash and discount allowed account will be debited.

Explanation:

• When cash is received from a debtor, sometimes a discount is allowed for the full settlement of the payment.

• since Krishna's account is a personal account so it will be credited when we receive payment from him.
• The cash account is a real account so it will be debited since the asset is increased.
• The discount allowed account is a nominal account so it will be debited because it is a loss.
• The journal entry for cash received from Krishna will be:

        cash a/c  dr.  12,500

        discount allowed a/c  dr.  500

                                       to Krishna's a/c   13,000

(being cash received from Krishna and discount allowed to him for full settlement.)