Journal Entry for Payment Made to Mr. X

The journal entry for payment made to Mr. X in full settlement of Rs. 30,000 will involve the following accounts:

1. Cash Account
2. Mr. X Account

The journal entry for this transaction will be as follows:

Date | Particulars | Debit | Credit
----|------------|-------|-------
XX/XX/XXXX | Mr. X Account | 30,000 |
| To Cash Account | | 29,000
| To Discount Allowed | | 1,000

Explanation of Journal Entry

1. Debit Mr. X Account

The first account to be debited in the journal entry will be Mr. X Account. The amount to be debited will be Rs. 30,000, which is the total amount due to Mr. X.

2. Credit Cash Account

The second account to be credited in the journal entry will be Cash Account. The amount to be credited will be Rs. 29,000, which is the amount paid in cash to Mr. X.

3. Credit Discount Allowed Account

The third account to be credited in the journal entry will be Discount Allowed Account. The amount to be credited will be Rs. 1,000, which is the discount given to Mr. X for settling the account in full.

Explanation of Accounts

1. Mr. X Account

Mr. X Account is a personal account and will be debited in the journal entry. This account represents the amount due to Mr. X, and the debit entry will reduce the amount outstanding.

2. Cash Account

Cash Account is a real account and will be credited in the journal entry. This account represents the amount paid in cash to Mr. X, and the credit entry will increase the balance in the account.

3. Discount Allowed Account

Discount Allowed Account is a nominal account and will be credited in the journal entry. This account represents the discount given to Mr. X for settling the account in full, and the credit entry will reduce the balance in the account.

Conclusion

In conclusion, the journal entry for payment made to Mr. X in full settlement of Rs. 30,000 involves debiting Mr. X Account, and crediting Cash Account and Discount Allowed Account. The entry reflects the reduction in the amount outstanding, the increase in the cash balance, and the reduction in the discount allowed account.

Particulars. | amt dr. |. amt cr |
Mr.X a/c -Dr. | 30,000 |. |
To discount recieved a/c. | 1,000. |
To cash a/c. | 29,000. |