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6. Give journal entries for the following: 2017 January 1 Sold goods for 10,000 on credit to Kabil. January 5 Kabil paid at 10% discount by cheque. January 7 Cheque received from Kabil was sent to bank for collection. (Hint - When cheque is not deposited in the bank on same day, Cheque in Hand Al is debited instead of Bank A/c)?
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6. Give journal entries for the following: 2017 January 1 Sold goods f...
**Journal Entries for the Transactions**

The given journal entries can be recorded as follows:

**January 1, 2017 - Sold goods for 10,000 on credit to Kabil**
- Accounts Receivable (Kabil) Dr. 10,000
- Sales Cr. 10,000

**January 5, 2017 - Kabil paid at 10% discount by cheque**
- Cash/Bank Dr. 9,000
- Discount Allowed Dr. 1,000
- Accounts Receivable (Kabil) Cr. 10,000

**January 7, 2017 - Cheque received from Kabil was sent to bank for collection**
- Cheque in Hand Dr. 10,000
- Accounts Receivable (Kabil) Cr. 10,000

**Explanation of Journal Entries**

1. **January 1, 2017 - Sold goods for 10,000 on credit to Kabil:**
When goods are sold on credit, the Accounts Receivable (Kabil) account is debited to record the amount owed to the seller. At the same time, the Sales account is credited to recognize the revenue generated from the sale. This transaction represents the initial sale of goods to Kabil.

2. **January 5, 2017 - Kabil paid at 10% discount by cheque:**
When Kabil pays the amount owed, it is recorded as a cash receipt. The Cash/Bank account is debited for the amount received, which is 9,000 after applying a 10% discount. Additionally, a separate account called Discount Allowed is debited for the discount amount, which is 1,000. The Accounts Receivable (Kabil) account is credited to reflect the settlement of the outstanding debt.

3. **January 7, 2017 - Cheque received from Kabil was sent to bank for collection:**
When the cheque received from Kabil is not deposited into the bank on the same day, the Cheque in Hand account is debited. This account represents the value of the cheque held by the business but not yet deposited. The Accounts Receivable (Kabil) account is credited to reflect the reduction in the outstanding amount owed by Kabil.

The reason for debiting the Cheque in Hand account instead of the Bank account is that when the cheque is not immediately deposited, it is not considered as a cash receipt until it is cleared by the bank. Therefore, until the cheque is deposited and cleared, it is recorded under the Cheque in Hand account to accurately represent the financial position of the business.
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6. Give journal entries for the following: 2017 January 1 Sold goods f...
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6. Give journal entries for the following: 2017 January 1 Sold goods for 10,000 on credit to Kabil. January 5 Kabil paid at 10% discount by cheque. January 7 Cheque received from Kabil was sent to bank for collection. (Hint - When cheque is not deposited in the bank on same day, Cheque in Hand Al is debited instead of Bank A/c)?
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