Journal Entry for Payment to Guru in Full Settlement in Cash
Payment in cash to Guru in full settlement involves recording the transaction in the books of accounts. Below is the journal entry for this transaction:

Cash Account Debit
- When making a payment in cash, the Cash account is debited to decrease the cash balance in the books.

Guru Account Credit
- The Guru account is credited to show that the payment has been made to Guru in full settlement.

Explanation
- When paying Guru in full settlement in cash, the Cash account is debited to reflect the decrease in cash balance. This is because cash is being paid out of the business to settle the liability owed to Guru.
- On the other hand, the Guru account is credited to show that the payment has been made to Guru and the liability has been settled in full.
- This journal entry ensures that the accounting records accurately reflect the transaction and the financial position of the business.
This transaction is important for maintaining accurate financial records and ensuring that all liabilities are settled in a timely manner. It also helps in tracking the cash flow of the business and maintaining transparency in financial transactions.