Entries

1. On purchase of goods on credit:

Purchases A/c     Dr     25,000

      To Y A/c                                 25,000

2. on payment for the bill Y

Y A/c                     Dr.    25,000

      To Bank                                    25,000  

3. amount of discount is received from Y

Y A/c                      Dr.      1,500

         To discount received               1,500

4. On receipt of 1,500 cheque for disc from Y

Bank A/c                Dr.       1,500

       To Y A/c                                      1,500