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