Paid Anand RS.4800 in full settlement. pass journal entry but mujhe amount mein hi doubt hai , journal entry mujhe pta hai.
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Paid Anand RS.4800 in full settlement. pass journal entry but mujhe amount mein hi doubt hai , journal entry mujhe pta hai.
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Explanation:
according to given transaction,Raj is a creditor for business . it means that we have to pay certain amount to raj.Hence, raj is the receiver .so according to personal account debit :-the receiver.similarly he will have been receiving Rs 5000 but we paid only Rs 4950 . Cash goes out from the business,so it is under the real account.according to real account cr:—what goes out . Similarly we got profit of rs 50 .but it shouldnot treated as profit and loss account.its treated as discount account rs50.
Lets see the journal entry
Raj a/c………………………Dr Rs 5000
To cash a/c ………. …………………Rs4950
To discount a/c ………………….….Rs50
(Being paid cash to Raj in full settlement of his account)
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