Easy Office

Journal entry for payment received from creditor


29 May 2017 If a company receives payment from one of its creditors as a form of settlement and closure of accounts then what is the journal entry for the above transaction in the books of company?

29 May 2017 bank Dr to creditors CR

29 May 2017 Bank A/c Discount A/c (Diff amt) To Crditor




29 May 2017 Thanks for the response. Mr. Kumar and Rashmi Gandhi ! What if even after this adjustment the creditors ledger still shows a credit balance in company's books? What could be the possible reasons of such differences?



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries