Question

What will be the journal entry for received from m s sharda and company in full settlement of amount due from them 9750 with narration?

Answer 1

Bank a/c dr (amt due less discount) and the discount allowed a/c dr (discount amt), To Ram’s a/c (full amt), Bank is receiver so debited.

In general, Discount is allowed and is expense of business so debited. Ram’s a/c was shown as debtor in the previous transactions and as his account is settled.

Answer 2

Ash a/c dr. To nn a/c