Sudhir paid 10'900 allowed him discount 1100
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so total receivables were 12000 and he was allowed to settle the same in 10900 allowing cash discount of 1100
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Explanation:
cash A/C dr 12000
To, Sudhir's A/C 10900
To, discount allowed A/C 1100
<Being sudhir paid and allowed him discount >
i hope it is helpful for you
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