Creditors amounting to Rs. 80,000 are transferred to Realisation Account. What entry will be made on their payment if Rs. 10,000 of the creditors are not to be paid and the remaining creditors agreed to accept 20% less amount? – Swamonk EduCare

Creditors amounting to Rs. 80,000 are transferred to Realisation Account. What entry will be made on their payment if Rs. 10,000 of the creditors are not to be paid and the remaining creditors agreed to accept 20% less amount?

Post category:Accountancy
Reading time:1 mins read

SOLUTION

Realisation A/c Dr. 56,000
To Cash/Bank A/c 56,000

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