1.

1. Remesh owes Kumar Rs. 5,000. He makes payments of the amount before the due date and Kumar allow him a discount of Rs. 500.2. Narendran sold to Ravi goods of the catalog price of Rs. 50,000 at a trade discount of 10%. Pass Journal entries in the two cases.

Answer»
DateParticularsLFDebitCredit
Kumar A/c    Dr5,000
  To cash A/c4,500
   To Discount Received500
[Amount paid to kumar in full settlement of his account]

In the book of kumar

DateParticularsLFDebitCredit
Cash A/c   Dr4,500
Discount Allowed A/c500
   To Rames's A/c5,000
[Amount received from Ramesh in full settlement of his account.]



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