What is the journal entry for paid to Mohan on account?

Mohan will debit his bank account while the debtor will credit his bank account. 2. the bank account will be credited while the capital account will be debited.

Which account is debited when salary is paid to RAM?

Personal account
Salary paid to Ram will be debited to Ram’s Personal account.

What is cash paid on account?

When a customer submits a payment on an account, your bookkeeper makes a journal entry of the amount and the transaction is considered “paid on account.” This simply means the customer has made a payment – which goes in the accounts receivable ledger – on the full amount owed.

How do I record payment on account?

Recording the Payment When you send the payment, debit the full invoice amount to your accounts payable account in your records. This reduces the accounts payable balance by the amount you owed. Credit the actual amount you paid to the cash account. A credit reduces the cash account, which is an asset account.

What is payment on account in accounting?

“Paid on Account” for Accounts Payable When you owe another company for goods or services, your account with the vendor is among your accounts payable, or money your company owes. Accounts payable are considered liabilities.

What is the journal entry of paid to the petty cashier?

The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund. The cashier creates a journal entry to record the petty cash receipts.

How do you record cash paid on account?

Record any cash payments as a debit in your cash receipts journal like usual. Then, debit the customer’s accounts receivable account for any purchase made on credit. In your sales journal, record the total credit entry.