Question

Received from mohan Allowed him discount​

Answer 1

Answer: hey,

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journal entry for received from Bharat cash 20000 allowed him discount rupees 500 will be ;

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cash a/c dr 20,000

discount a/c dr 500

to Bharat a/c 20,500.

(being cash received from bharat and allowed him 500 discount)

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¤ reason for debit and credit;

...cash is coming into the business so it will be debited.

...giving discount is an expence for business so, it will be debi<<ed.

...giver of cash is bharat so, it will be credited..

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hope it helps☺☺☺

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Explanation: Another example,<

This transaction affects three accounts...

Cash a/c (Cash being received) ,Sameer a/c (he is paying cash) , Discount allowed a/c(Discount being allowed to him)

Cash account is a Real account (All assets and Liabilities come under it) , Sameer a/c is a Personal account, Discount allowed a/c is a nominal account (All expenses losses Gains income come under it)

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

In contention with the above rules...

Sameer is the giver ,so he should be credited.

Discount allowed is an expense to us, So it should be debited.

Cash is coming in, so It should be debited...

So the Journal Entry will be

Cash a/c Dr

Discount allowed a/c Dr

To Sameer a/c

(being cash is received from Sameer)

Answer 2

Answer:

to Bharat a/c 20,500. ... ¤ reason for debit and credit; ...cash is coming into the business so it will be debited. ...giving discount is an ...