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nekit [7.7K]
3 years ago
10

Issued a cheque of rs. 39000 to Saurya stores in full settlement. journal entry​

Business
1 answer:
Semmy [17]3 years ago
4 0

Answer:

When issuing a check to a creditor as is being done here, you need to debit the creditors account (Accounts Payable) to show that you are paying off the debt.

You also need to credit cash because a credit will show that cash was used to pay for something and so has reduced.

Date               Account Title                                                  Debit            Credit

XX-XX-XXX   Accounts Payable - Saurya Stores             Rs. 39,000

                       Cash                                                                                Rs. 39,000

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