what will be the jounal entry for "Rs 2000 paid to his creditor"
Answers
Answered by
18
Creditor a/c Dr. 2000
To cash a/c Cr.2000
If got some discount then,
Creditor a/c Dr.
To Cash a/c Cr.
To discount a/c Cr.
#thanks
To cash a/c Cr.2000
If got some discount then,
Creditor a/c Dr.
To Cash a/c Cr.
To discount a/c Cr.
#thanks
VinnyJ:
Yaaa
and to cash a/c Cr.?
Yaaa
Is Anshul's name anywhere before this part of the question
Yeah. it is given as " Purchased goods on credit from Anshul"
of Rs 6000
Ok fyn
If in the question( that u have asked) "full settlement " is written then use the second one if the the amount is having any difference
okk
thnx
Answered by
10
This transaction affects two accounts ..i.e., creditors a/c and cash a/c... where creditors a/c being a personal a/c and cash a/c being a real a/c
As Per the golden rules of accounting when it comes to Personal account.."Reciever should be debited and Giver should be credited".. creditors being at the recieving end.hence should be debited to that extent...where as for real account "What comes in should be debited and what goes out should be credited" ...since we are paying and cash is going out..cash a/c should be credited to that extent....
So the Journal entry will be
Creditor's a/c. Dr. 20000
To Cash a/c. 20000
(being Cash paid to creditors)
Hope this helps!
As Per the golden rules of accounting when it comes to Personal account.."Reciever should be debited and Giver should be credited".. creditors being at the recieving end.hence should be debited to that extent...where as for real account "What comes in should be debited and what goes out should be credited" ...since we are paying and cash is going out..cash a/c should be credited to that extent....
So the Journal entry will be
Creditor's a/c. Dr. 20000
To Cash a/c. 20000
(being Cash paid to creditors)
Hope this helps!
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