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What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash?
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What is the journal entry of transaction?Received from Akhil Rs 38,000...
Journal Entry for Receiving Cash from Akhil
Date: (Date of transaction)
Account Debit: Cash Account (Rs 38,000)
Account Credit: Accounts Receivable - Akhil (Rs 40,000)
Explanation:
The above journal entry records the transaction of receiving cash from Akhil in settlement of his dues of Rs 40,000. The cash received is debited to the Cash Account, which is an asset account. The Accounts Receivable - Akhil account, which is a current asset account, is credited with the amount of Rs 40,000, representing the settlement of his dues.
However, since Akhil has paid only Rs 38,000 in cash, the balance amount of Rs 2,000 remains outstanding. This balance amount will still be shown under the Accounts Receivable - Akhil account until it is fully paid.
It is essential to record all transactions such as this in the books of accounts to maintain accurate records and ensure that the financial statements reflect a true and fair view of the company's financial position.
Date: (Date of transaction)
Account Debit: Cash Account (Rs 38,000)
Account Credit: Accounts Receivable - Akhil (Rs 40,000)
Explanation:
The above journal entry records the transaction of receiving cash from Akhil in settlement of his dues of Rs 40,000. The cash received is debited to the Cash Account, which is an asset account. The Accounts Receivable - Akhil account, which is a current asset account, is credited with the amount of Rs 40,000, representing the settlement of his dues.
However, since Akhil has paid only Rs 38,000 in cash, the balance amount of Rs 2,000 remains outstanding. This balance amount will still be shown under the Accounts Receivable - Akhil account until it is fully paid.
It is essential to record all transactions such as this in the books of accounts to maintain accurate records and ensure that the financial statements reflect a true and fair view of the company's financial position.
Community Answer
What is the journal entry of transaction?Received from Akhil Rs 38,000...
Cash account dr.38000 discount allowed account dr.2000 to Akhil account 40000
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What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash?
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What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash?.
What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the journal entry of transaction?Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash?.
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