Accounts Payable Journal Entry With Discount
W he n we paid to our suppliers or creditors b efore due date, the n t hey may give us a Discount due to prompt payment w hich is Discount Received for our b usi ness. Example, suppose we paid cas h / c h eck to our suppliers Rs. 9500 in full settlement of Rs. 10000. T he n, w hat is the jour nal entry to record in t he b ooks of accou nts? In t his example, we record the followi ng entry: Accounts Payab le a/c 10000 Cas h a/c / B a nk a/c 9500 ...