What is the entry of our creditots 2500 discount allowed by him 65
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Hello!!
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A creditor is the one to whome we have to pay the amount, we have a debt to which we have to pay in future.
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The journal entry will be...
Creditors a/c. Dr 2500
To cash a/c. 2415
To discount Rec. a/c. 65
( being cash paid to the creditors).
since, Creditors is a liabiluty , and we k ow if there is decrease in liability we ll debit it.
cash is being paid , so we ll credit it..
discount received is an income , so, we ll credit it.
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☺️☺️☺️☺️☺️☺️
__________________________________________
A creditor is the one to whome we have to pay the amount, we have a debt to which we have to pay in future.
_________________________________________
The journal entry will be...
Creditors a/c. Dr 2500
To cash a/c. 2415
To discount Rec. a/c. 65
( being cash paid to the creditors).
since, Creditors is a liabiluty , and we k ow if there is decrease in liability we ll debit it.
cash is being paid , so we ll credit it..
discount received is an income , so, we ll credit it.
________________________________________
☺️☺️☺️☺️☺️☺️
Answered by
0
Current Transaction affects 3accounts...
creditors a/c(real account) , Cash a/c(real account) , Discount recieved account(nominal account)..
The There golden rules of accounting are
Personal account - Debit the receiver ,credit the giver
Real account - Debit what comes in, credit what goes out
Nominal account - Debit All expenses and losses, credit all incomes and Gains
Increase in asset/incoming/decrease in liability should be debited..so creditors should be debited..Cash is outgoing,discountbrecieved is an income..so should be credited..
The Journal Entry will be
Creditors a/c Dr. 2500
To Cash a/c 2435
To Discount recieved income a/c 65
(Paid cash to creditors)
creditors a/c(real account) , Cash a/c(real account) , Discount recieved account(nominal account)..
The There golden rules of accounting are
Personal account - Debit the receiver ,credit the giver
Real account - Debit what comes in, credit what goes out
Nominal account - Debit All expenses and losses, credit all incomes and Gains
Increase in asset/incoming/decrease in liability should be debited..so creditors should be debited..Cash is outgoing,discountbrecieved is an income..so should be credited..
The Journal Entry will be
Creditors a/c Dr. 2500
To Cash a/c 2435
To Discount recieved income a/c 65
(Paid cash to creditors)
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