Question

Settled banshidhar account for rs.500 by cheque for rs.480

Answer 1

Bank a/c.. dr.. 480
discount allowed a/c dr... 20
To cash a/c........... 500

( being sattlement done by bank on discount)

Answer 2

Explanation:

the journal entry will be.

bank a/c dr 480

discount a/c 20

to banshidhar a/c 500

( being cheque received in full settlement)