Question

Suresh yadav, who owed ₹5000,paid the amount by bank draft in full settlement of his account, by availing 3% discount .
Pass journal entry

Answer 1

Answer:

Journal entry

Bank A/c                     Dr   4850

Discount allowed A/c Dr    150

           To Suresh yadav  A/c                          5000

(being received as full settlement from suresh yadav )

Explanation:

Bank  A/c - personal account - receiver of cash , therefore its debited

discount allowed - nominal account - its expenses , therefore its debited

suresh yadav  A/c - personal account - hes the giver (who pays ) therefore its credited

Answer 2

your general entry will be:

Bank a/c. Dr. 4850

discount allowed a/c. Dr. 150

to Suresh Jadhav a/c. 5000

(being cash received as full settlement form Suresh Jadhav)