1. Debtors A/c (Name of the Party) Dr. 80,000
Loans & Advances(Name of the Party) Dr 20,000
To, Sales 80,000
To, Cash 20,000
2. Bank A/c Dr 1,00,000
To, Debtors A/c (Name of the Party) 80,000
To. Loans & Advances(Name of the Party) 20,000
But As Per Income Tax Act, Section 40 (A) (3) you cannot make payment in cash exceeds Rs.10,000/- for one person in a day.