- The first step in understanding the full settlement of journal entry for 15500 received from Shyam is to look at the initial journal entry that was made.
- Assuming that the amount was received as payment for a debt owed by Shyam, the journal entry would have been:



Debtors A/C Dr. 15500

To Shyam A/C Cr. 15500





- Full settlement refers to the complete payment of a debt or obligation.
- In this case, Shyam has paid 15500 in full settlement of his debt.
- This means that there is no longer any outstanding balance owed by Shyam.


- The impact of the full settlement on the accounts involved is as follows:



Debtors A/C: The debit balance of 15500 in the Debtors account has been reduced to zero.

Shyam A/C: The credit balance of 15500 in the Shyam account has been reduced to zero.





- In conclusion, the full settlement of journal entry for 15500 received from Shyam means that he has paid his debt in full and there is no longer any outstanding balance.
- The impact of the full settlement on the accounts involved is reflected in the reduction of the debit and credit balances to zero.

Cash A/c ... Dr 38000Bad debtsA/c.. Dr 2000 To akhil 40000