Question

Settled arun's account in full after deducating 5% for cash discount journal

Answer 1

Answer:It represents both discount allowed and discount received at the time of cash receipt and cash payment.

Cash discount is a reduction in the amount of debt being paid. It is offered by creditor to the debtor so as to motivate the debtor to make the payment promptly within a specified time. Cash discount allowed to the debtor is a loss / expenses and cash discount received from creditor is an income/ gain.

Explanation:

Answer 2

Answer:

cash 11400

discount 600

toarun 12000