Question

Received from nandlal 14150 in full settlement of his account...

Answer 1

⭐⭐⭐⭐⭐⬇⬇⬇⬇⬇⭐⭐⭐⭐⭐..

Received from nandal in full settlement of his account...

It means received the amount from nandal in terms of discount.....

It s journal entry will be...

Cash @/c...dr..14150

***To nandal.............. 14000

***To discount received a/c...... 150

[ Being cash received on credit.. In full settlement.]

☺☺☺

Answer 2

Answer:

Cash A/c Dr. xxx

        To Nandlal  xxx

(Being amount received from Nandlal in full settlement of his account.)

Explanation:

• Below mentioned are The Golden Rules of Accounting-

1. For Real Accounts the rule says- Debit What Comes In, Credit What Goes Out.
2. For Personal Accounts the rule says- Debit the Receiver and Credit the Giver.
3. For Nominal Accounts the rule says- Debit All Expenses and Losses, Credit all Incomes and Gains.

• Cash A/c being a real account, will be applying Rule 1 of accounting and we will debit the cash account as it is what is coming in the business.
• Nandlal A/c is a personal account, therefore by applying the Rule 2 of accounting, we will credit Nandlal's A/c as he is the giver.

Hence, while passing the journal entry we will debit the Cash A/c and credit Nandlal's A/c.

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