Received Rs 1100 from M/s M in settlement of Rs 1250 due from him. The nature of the journal entry to be passed for this transaction is ______.

Simple entry

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Compound entry

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Complex entry

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Contra entry

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Solution

The correct option is C Compound entry
A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.
Hence, it is a compound entry, as cash account and discount allowed A/c is to be debited.

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[dummy - to be removed] What is the journal entry in bank books for the transaction of withdrawing RS 1200 from the bank by a customer?

What is the journal entry in bank books for the transaction of withdrawing Rs 1200 from the bank by a customer?

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