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Blababa [14]
2 years ago
13

A cheque recevied from ram 3400 in full settlement of 3500 journal entry​

Mathematics
1 answer:
Rasek [7]2 years ago
7 0

Case of full settlement arises when

  • the customer has paid the money before and now it needs to be adjusted
  • When the cash discount is given to customer on sale for one time settlement.

Amount received from ram should be debited by adjusting any discount given to ram.And crediting personal account of Ram.

Journal entry

Bank /cash a/c………..Dr

Discount given a/c… Dr

To ram a/c

(Being amount received from Ram and discount adjusted)

Example:

Sales to Ram…1200 Rupees

Received in full settlement ..1000 Rupees.

So journal entry will be

Bank a/c …….Dr 1000

Discount given a/c…Dr 200

To ram a/c. ………………….1200

(Being amount received from ram in full settlement of his account)

Hope it helps :)

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