Question

Recived by cheque rupess 25000 in full settlement of his account of rupess 25400 from ram &raj

Answer 1

Journal Entry :

Bank A/C    Dr     Rs.25,000

Discount Allowed A/C    Rs. 400

      To Ram & Raj     Rs.25,400

(Being Ram & Raj settled his account)

Explanation :

Ram & Raj was previously our debtor. We would have debited him. But now he made payment, and he is no more our debtor. so, we have credited him.

Bank balance is increasing. Hence, debited.

Discount allowed is a loss for the business. Hence, debited.

Answer 2

This is journal entries question..

Q:-
Journalise the transaction..

So here is your answer. .

Bank A/c Dr 25000
Discount Alloweted A/c Dr 400
To
Ram & Raj A/c 25400

(Cheque Received By Ram & Raj)

-Tiger Sam...