1.

Settled Ramesh account paying cash 20000 and received 5%​

Answer»

rnal entry is as follows:Bank a/c dr (AMT due less discount)Discount allowed a/c dr (discount amt)To RAM’s a/c (full amt)Bank is RECEIVER so debitedDiscount is allowed and is expense of business so debitedRam’s a/c was shown as debtor in the previous transactions and as his account is settled , he is no more debtor so credited. (Moreover he is also the GIVER so credited.)



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