Journal Entry For Cheque Received And Deposited And Discount Allowed

When we received cheque or check from customer or accounts receivable / debtor, then either we deposit the cheque into bank or retain in cashier custody.

Suppose, we received the cheque from our customer, Mr. A and did not deposit the cheque into bank on the same date, and also give Discount Allowed of Rs. 200 to customer, Mr. A against the payment of goods sold to him of Rs. 7000.

 In this case, the journal would be as follows:

                                               Cash a/c  6800

 

                           Discount Allowed a/c  200

 

                                                                Mr. A  7000

 

                                    (Cash Received From Mr. A For Goods Sold with Discount)

Now, suppose, if we deposited that cheque / check into bank account of the company on the same date, then following journal entry is recorded as shown below:

 

                                                Bank a/c  6800

 

                             Discount Allowed a/c  200

 

                                                                 Mr. A  7000

 

                                  (Cheque Received From Mr. A For Goods Sold with Discount)