Question

Velmurugan Paid cash to satya 4120 and he allowed us discount 80

Answer 1

JOURNAL ENTRY - -

Satya a/c dr.. 4120


Discount allowed a/c dr 80


........... To cash a/c .. 5,000


( being cash paid to satya on discount )


Note-- Discount allowed can. never be. credited in every case..

Answer 2

Satya dr. 4200
to cash account 4120
to discount received 80
(being cash paid and discount received)