Total creditors of the firm were Rs. 20,000. A creditor for Rs. 2,000 was untraceable and other
creditors accepted payment allowing 10% discount.
Pass necessary Journal entries.
Answers
Answered by
0
Explanation:
According to the given information total credit amount of the firm is 20000. However, in that 2000 is not traceable. So, traceable credit will be
=20,000 - 2,000
=18,000
Now in this amount, there is a 10 percent discount as well which amounts to
10% of 18000 = 1800
Hence the net credit amount will be = 18,000 - 1800 = 16,200
Answered by
0
A journal entry is a business transaction record in the accounting books of an enterprise.
- The correct journal entry is -
Realisation A/c Dr. 16,200
To Bank A/c 16,200
( Being payment made to the creditors)
Working Notes
Total creditors = 20,000
Creditor Missing = 2000
Thus, total amount = 20,000 - 2,000
= 18,000
Discount = 10%
10% of 18000 = 1800
Amount realised = 18,000 - 1800
= 16,200
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