What is the journal entry of:
Paid to ajay in settlement of his account
Answers
The journal entry refers the debiting accounts that are payable and credit cash and the transaction will remove the accounts payable of a specific invoice from the supplier and reduce cash payment.
The journal entry is the method used to enter an accounting transaction into the accounting records of a business. The records are aggregated into the general ledger or the journal entries may be recorded in a variety of sub-ledgers which are later rolled up into the general ledger. To construct financial statements as of the end of a reporting period , This information is used.
A journal entry should contain the following components:
• the debits and credits should be recorded ,The date of the entry ,The accounting period in which the journal entry should be recorded, The name of the person recording the entry ,Any managerial authorization(s) and A unique number to identify the journal entry.
In case of Ajay
Ajay A/C : Dr. 4,000
To Cash A/C: 3,800
To Discount received A/C: 200
Hence, Being paid to Ajay in settlement
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Answer:
Ajay a/c dr 4000
to cash. 3800
to discount. 200