received from sohan in full settlement of his account 8700 show the journal entry
Answers
Answered by
89
Cash A/C. Or Bank A/C. Dr. Rs.8700 Discount Allowed A/C. Dr Rs.xxx To Sohan A/C. Rs.(8700+xxx) (Being sohan settled his A/c)
sagarkumars3015:
if question said that payment made in full settlement there is no need to show discount...because it can be possible that debtor become insolvent or only able to pay some part of whole payment.
Answered by
35
A journal entry is the business transaction record in the firm's accounting books.
- Full settlement means when the account is settled, or when it is paid in full. Thus, it is when the person does not owe anything any longer.
- The correct journal entry will be -
- Cash A/c Dr. 8700
To Sohan A/c 8700
( Being the full settlement of Sohan's Account)
Similar questions