1.

Ramesh settled his account by issuing cheque including rs 60 for interest pass the journal entry​

Answer»

Answer:

Creditor A/c Dr.

Interest expense A/c Dr.

To Bank A/c

To Discount (BALANCE, if any)

Explanation:

Settlement of any pending dues MEANS some discount has been received on the total dues pending.

E.g. For dues of LIKE 1.2 lac, you settled it with just 1 lac only. Here 0.2 lac WOULD be the discount.



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