07 March 2011
Dear Sir, Discount Received from Mr. Ram Rs. 200, journal entry is Mr. Ram A/c Dr. 200 To Dis. Rec. 200 (Being discount received from Mr. Ram Rs. 200) Why this journal entry which golden rule, we are applying here according to Nominal a/c all income cr. and we are doing the same here but at the same time if we talk about the other a/c Mr. Ram, he is the giver and according to Personal a/c rule, credit the giver, then why we are debiting the Mr. Ram a/c. Please Explain with the a reason Please Mr. Experts????????
08 March 2011
Mr Ram is giving discount it means he is acknowledging that money relating to discount being passed on has been received by him. So actually he is the receiver of the money.
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