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Journal entry

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Diya Bansal

7 Points Posted on 08 September 2020

(i) Received claim for RS 900 from a customer for late supply of goods claim admitted for RS 500.
(ii) For meeting the requirements of the business for cash, arranged a loan of RS 10,000 from Seth. madan, he gave the amount after deducting interest @ 12%p.a. on RS 10,000 for six months.

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Quick Summary

This journal entry details two key business transactions. Firstly, a customer claim for late goods supply was received and partially admitted for £500 out of £900. Secondly, a £10,000 loan was secured from Seth Madan to meet cash requirements, with interest calculated at 12% per annum for six months. The entry seeks clarification on whether the customer claim is a discount.