Page 118 - Office Practice and Accounting -9

Here Bigyan is receiver so his account is debited as per the rule of personal account
and purchase return is credited because as goods is real account, which is going
outside.

Sales Return
Goods of Rs. 5000 returned from Sanju.

Date Particulars LF Dr (Rs.) Cr (Rs.)
Sales Return A/c...........Dr. 5,000
To Sanju A/c 5,000
(Being goods returned to Sanju)

Here sales return is debited because goods is real account and it is coming inside.
Whereas Sanju is the giver so her account is credited as per the rule of personal
account.

Discount

There are two types of discount:
1. Cash discount: Cash discount is a rebate offered by seller to buyer to encourage
early payment. Cash discount is treated as income (credited) if it is received and
as expenses (debited) if allowed.
i. Received Rs. 9800 from debtor Prativa in full settlement of her account of
Rs 10,000.

Date Particulars LF Dr (Rs.) Cr (Rs.)
Cash A/c ................... Dr. 9800
Discount A/c................... Dr. 200
To Prativa A/c 10,000
(Being cash received from
Prativa in full settlement)

Here cash is debited because it is incoming, discount is debited as it is expenses and
Prativa is credited because she is the giver.

ii. Paid to Kiran Rs. 4750 on his account of Rs 5000 in full settlement.

Date Particulars LF Dr (Rs.) Cr (Rs.)
Kiran A/c................ Dr. 5000
To Cash A/c 4750
To Discount 250
(Being cash paid to Kiran in full
settlement of his account

114 Office Practice and Accounting 9