Mr.Ram sold goods of Rs.2,50,000/- including a discount of Rs.5,000/-. Mention the amount shall be debited with the account of-
A. Ram A/c – Rs.2,45,000
B. Ram A/c – Rs.2,50,000
C. Cash A/c – Rs.2,45,000
D. Cash A/c – Rs.2,50,000
Answer:B
Mr.Ram sold goods of Rs.2,50,000/- including a discount of Rs.5,000/-. Mention the amount shall be debited with the account of-
A. Ram A/c – Rs.2,45,000 B. Ram A/c – Rs.2,50,000 C. Cash A/c – Rs.2,45,000 D. Cash A/c – Rs.2,50,000
Explanation: Even in the case of Discounts, the journal entry shall be made a Gross basis only.