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Cash collection from debtors in full settlement of RS.2,100)RS.2,050 into journal entry?
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Cash collection from debtors in full settlement of RS.2,100)RS.2,050 i...
Journal Entry for Cash Collection from Debtors in Full Settlement of RS.2,100 (RS.2,050)
  1. Identify the Transaction: The transaction involves receiving cash from debtors in full settlement of RS.2,100, but only RS.2,050 was received.
  2. Determine the Accounts Affected:
    - Cash Account (Asset) - to record the cash received
    - Debtors Account (Asset) - to reduce the amount owed by debtors
    - Discount Allowed Account (Expense) - to account for the discount given for early payment
  3. Prepare the Journal Entry:
    - Debit Cash Account with RS.2,050
    - Debit Discount Allowed Account with RS.50 (RS.2,100 - RS.2,050)
    - Credit Debtors Account with RS.2,100
  4. Journal Entry:
    - Debit: Cash Account RS.2,050
    - Debit: Discount Allowed Account RS.50
    - Credit: Debtors Account RS.2,100
  5. Explanation:
    - The Cash Account is debited to increase the cash balance by the amount received.
    - The Discount Allowed Account is debited to record the discount given for early payment.
    - The Debtors Account is credited to reduce the amount owed by debtors.
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Cash collection from debtors in full settlement of RS.2,100)RS.2,050 into journal entry?
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