Question

What will be the journal entry paid to s.seth and bros by cheque in full settlement 22000?

Answer 1

S. seth and bros @/c..dr.22,000
To bank a/c....................... 22,000

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

S.Seth & bros A/c - pesonal A/c , being settlement made , receiver of money therefore its debited .

Bank A/c - real A/c , where money goes out of the company therefore its credited .

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Journal entry

S Seth & Bros A/c Dr 22000

To Bank A/c 22000

(being full settlement made )

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Note: if full settlement made less than payable amount then it should Credited with discount received A/c .

in this question ur not given how much payable , therefore i assumed that Rs.22000 paid as amount payable and fully settled to him .