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Required: Journal entry Received Rs.18,000 from debtors and discount allowed him Rs. 2,000. please help. ​
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30 votes
Required: Journal entry Received Rs.18,000 from debtors and discount allowed him Rs. 2,000. please help. ​

User Mahdi Jokar
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1 Answer

14 votes
14 votes

Answer:

If there was a discount allowed of Rs. 2,000 then it means that the total amount the debtor was owing was:

= Cash paid by debtor + Discount allowed

= 18,000 + 2,000

= Rs. 20,000

Journal entry is therefore:

Date Account Title Debit Credit

XX-XX-XXXX Cash $18,000

Discount allowed $ 2,000

Accounts Receivable $20,000

User Wee
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