Question

Required: Journal entry

Issued a cheque of Rs.39000 to Saurya stores in full settlement
please help me ​

Answer 1

If a cheque was being issued to settle a account payable, the relevant entry is to debit the accounts payable account to show that the debt is being reduced. You will then credit the cash account to show that cash is being reduced as well because it was used to pay off the debt.

Date Account Title Debit Credit

XX-XX-XXXX Accounts Payable - Saurya Stores Rs. 39,000

Cash Rs. 39,000