What is the journal entry of full settlement?

A journal entry is the business transaction record in the firm’s accounting books. Full settlement means when the account is settled, or when it is paid in full. Thus, it is when the person does not owe anything any longer.

What is the journal entry for payment made by Cheque?

Journal entry When goods are purchased by paying cheque. Purchase goods for Rs 2000 by paying cheque Rs 20,000. and rule of Real account is Dr what comes in and Personal A/c is Cr the giver her Purchase is debit as goods comes in the business and Bank is Cr as bank is giver of money.

What is the journal entry for paid RAM?

The journal entry for paying salary to ram would be as follows. Salary A/C Dr. Salary payable A/C Dr. The justification for these entries is that in the first entry the salary is being due and in the second entry, the salary is eventually being paid to the person.

What is the journal entry of received from Dev in full settlement of his account?

Answer:

What is the meaning of paid in full settlement?

Full Settlement means: Funds paid by the Buyer for the Supplies when, and only when credited to the Company’s Bank Account.

What is full settlement account?

An account settlement generally refers to the payment of an outstanding balance that brings the account balance to zero. It can also refer to the completion of an offset process between two or more parties in an agreement, whether a positive balance remains in any of the accounts.

When salary is paid by cheque account is credited?

because salary is paid in Cheque/cash (it is a Real account; all assets and Liabilities come under Real account; bank balance/cash balance is an asset) ..

Is paying by cheque liability?

Under the Bills of Exchange Act 1882, you can be held liable for payment of a cheque merely by the fact that you signed it. The act states that once you present a cheque for payment, you are confirming that it will be honoured.

What is the journal entry when cash paid to RAM?

Answer: Explanation: Since Ram is a Debtor, on receipt of cash from Ram, Ram’s A/c would be credited, as there is a decrease in Debtors which is an asset . When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited.

What is the journal entry of paid for stationery?

When you debit office supplies as an expense to an account such as Office Supplies, you would credit a Cash account if you paid for the supplies with cash. But if you use a credit card or receive a billing invoice you have to pay, you record the office expense in the Accounts Payable account.

What is the journal entry for paid into bank for opening a current account?

Here Amount paid into bank for opening a current account So Here Bank A/C is opening so it should be debited and cash A/C is a real account which is outgoing or decreasing it should be credited.

How much is the amount received from Ram in full settlement?

Received in full settlement ..1000 Rupees. When the cash discount is given to customer on sale for one time settlement. Amount received from ram should be debited by adjusting any discount given to ram.And crediting personal account of Ram. Discount given a/c…

What is the journal entry for cheque received under double entry?

Assumed Fact for understanding: The cheque is received. Full and final settlement is received but deducted some amount towards discount say 10\% out of Rs.100.00 due. Then journal entry under double entry system is: Dr. Bank a/c no. of so and so Bank by Rs.90.00; Dr. Discount A/c Rs.10.00; Credit Ram’s A/C Rs.100.00.

How much was the amount of cheque issued to MK enterprises?

Cheque issued to MK Enterprises Rs 149,000 in full settlement of Rs 150,000. (Being- cheque issued and discount received) . Cheque issued to KL Traders Rs 67,200 after deducting 4\% discount. . (Being- cheque issued and discount received) .

Is Ram’s a/C a debtor or creditor?

Ram’s a/c was shown as debtor in the previous transactions and as his account is settled , he is no more debtor so credited. (Moreover he is also the giver so credited.)

https://www.youtube.com/watch?v=4IHri23aGdM