English

Sundry Creditors ₹ 2,50,000 and Bills Payable ₹ 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. - Accounts

Question

Sundry Creditors ₹ 2,50,000 and Bills Payable ₹ 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. What would be the further treatment if nothing else is mentioned?

Journal Entry

Solution

Journal entry
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Realisation A/c ...Dr.		35,000	-
	To Bank A/c		-	35,000
	(Being Bills Payable paid off)