Multiple choice

A cheque received from a debtor, Rahul, is of Rs. 9,800 in full settlement of Rs. 10,000. The correct entry is

  1. Rahul's A/c Dr 10,000
    To Cash A/c 9,800
    To Discount A/c 200
  2. Cash A/c Dr 10,000
    To Rahul's A/c 10,000
  3. Bank A/c Dr 9800
    Discount A/c 200
    To Rahul's A/c 10,000

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cheque is received, so we would debit bank. Discount allowed (10,000 - 9,800 = 200) is debited, since it is a loss. Rahul has paid by cheque, so he would be credited.

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