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horsena [70]
3 years ago
13

Required: Journal entry Received Rs.18,000 from debtors and discount allowed him Rs. 2,000. please help. ​

Business
1 answer:
alex41 [277]3 years ago
8 0

Answer:

If there was a discount allowed of Rs. 2,000 then it means that the total amount the debtor was owing was:

= Cash paid by debtor + Discount allowed

= 18,000 + 2,000

= Rs. 20,000

Journal entry is therefore:

Date                       Account Title                                          Debit             Credit

XX-XX-XXXX        Cash                                                     $18,000

                              Discount allowed                                $  2,000

                              Accounts Receivable                                               $20,000

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