Accountancy NEB Class 11 2076 question paper

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1. 120763 marksHideAnswer

   Mention any three features of Double Entry Book-keeping System.

   Three features of the double entry book-keeping system are:

   1. Two-fold aspect. Every transaction has two aspects, a debit (receiving) and a credit (giving), and both are recorded.
   2. Equal debit and credit. For every transaction the amount debited equals the amount credited, so total debits always equal total credits.
   3. Complete record and accuracy check. It keeps a complete record of all transactions and allows a Trial Balance to be prepared to test arithmetical accuracy, and the final accounts to be prepared to know profit or loss and financial position.

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2. 220762 marksNumericalHideAnswer

   Following sales transactions are given: 1 Jan: Sales to Pande, 100 meters cloth @ Rs. 300 per meter. 5 Jan: Sales to Rimal, 200 meters silk cloth @ Rs. 500 per meter (Trade Discount 10%). 10 Jan: Sales to Ghimire, 300 meters cloth @ Rs. 100 per meter. Required: Sales Book.

   Sales Book

   Date	Particulars	Details (Rs.)	Amount (Rs.)
   1 Jan	Pande - 100 meters @ Rs. 300		30,000
   5 Jan	Rimal - 200 meters silk @ Rs. 500 Less: 10% Trade Discount	1,00,000 (10,000)	90,000
   10 Jan	Ghimire - 300 meters @ Rs. 100		30,000
   	Total (to Sales A/c)		1,50,000

   Working: Pande:

   $$ \begin{aligned} \text{Pande} &= 100\times300 \ &= 30{,}000 \end{aligned} $$

   Rimal:

   $$ \begin{aligned} \text{Rimal} &= 200\times500\times90% \ &= 90{,}000 \end{aligned} $$

   Ghimire:

   $$ \begin{aligned} \text{Ghimire} &= 300\times100 \ &= 30{,}000 \end{aligned} $$

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3. 320766 marksNumericalHideAnswer

   Following cash and bank transactions are given: Chaitra 1: Cash in hand Rs. 50,000, cash at Bank Rs. 60,000. Chaitra 5: Sold goods for cash Rs. 30,000. Chaitra 8: Cash deposited into Bank Rs. 15,000. Chaitra 10: Purchased goods worth Rs. 15,000 and paid Rs. 10,000 in cash and balance through cheque. Chaitra 15: Withdrawn Rs. 15,000 cash from Bank for office use. Chaitra 20: Advertisement expenses Rs. 10,000 paid by cheque. Required: Cash Book with Cash and Bank Column.

   Two Column Cash Book (Cash and Bank) - C = contra entry.

   Date	Receipts	Cash	Bank	Date	Payments	Cash	Bank
   Chaitra 1	To Balance b/d	50,000	60,000	Chaitra 8	By Bank (C)	15,000	-
   Chaitra 5	To Sales	30,000	-	Chaitra 10	By Purchases	10,000	5,000
   Chaitra 8	To Cash (C)	-	15,000	Chaitra 15	By Cash (C)	-	15,000
   Chaitra 15	To Bank (C)	15,000	-	Chaitra 20	By Advertisement	-	10,000
   				Chaitra 31	By Balance c/d	70,000	45,000
   	Total	95,000	75,000		Total	95,000	75,000

   Closing balances: Cash Rs. 70,000 and Bank Rs. 45,000.

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4. 420766 marksNumericalHideAnswer

   On reconciliation of Pass Book and Cash Book the following facts are located: (i) Balance as per Cash Book Rs. 80,000. (ii) Cheque issued but not presented for payment Rs. 8,000. (iii) Cheque of Rs. 10,000 were sent to Bank for collection but cheque of Rs. 6,000 only were credited in Pass Book. (iv) Interest collected by Bank of Rs. 1,000 was not recorded in Cash Book. (v) Bank charged commission of Rs. 100 debited in Pass Book only. (vi) A cheque of Rs. 10,000 has been deposited by a debtor but not recorded in Cash Book. Required: Bank reconciliation statement.

   Bank Reconciliation Statement (starting from Cash Book balance):

   Particulars	Plus (Rs.)	Minus (Rs.)
   Balance as per Cash Book	80,000
   (ii) Cheque issued but not yet presented	8,000
   (iii) Cheque deposited but not yet credited (10,000 - 6,000)		4,000
   (iv) Interest collected by bank, not in cash book	1,000
   (v) Bank commission charged in pass book only		100
   (vi) Cheque deposited by debtor, not in cash book	10,000
   Total	99,000	4,100
   Balance as per Pass Book		94,900

   $$ \begin{aligned} \text{Pass Book balance} &= 80{,}000 + 8{,}000 - 4{,}000 + 1{,}000 - 100 + 10{,}000 \ &= \textbf{Rs. } 94{,}900 \end{aligned} $$

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5. 520764 marksHideAnswer

   Following errors were located before preparation of Trial Balance: (i) Wages paid of Rs. 2,000 for installation of machinery was debited to wages account. (ii) Goods sold to Raj for Rs. 5,000 was wrongly been debited to Saj's account. (iii) Salary paid to Ram Rs. 10,000 was debited to Ram's account. Required: Entries for rectification.

   Rectifying Entries (i) Wages for installation of machinery are a capital expenditure and should be added to Machinery, not charged to Wages: Particulars Debit (Rs.) Credit (Rs.) --------- Machinery A/c ..... Dr. 2,000 To Wages A/c 2,000 ...

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6. 620763 marksNumericalHideAnswer

   An unadjusted Trial Balance of a company: Sales 4,00,000 (Cr); Capital 2,00,000 (Cr); Creditor 1,00,000 (Cr); Purchases 3,00,000 (Dr); Wages 50,000 (Dr); Fixed assets 1,00,000 (Dr); Salaries 50,000 (Dr); Debtors 80,000 (Dr); Cash 1,20,000 (Dr); Total 7,00,000. Adjustments: Outstanding wages Rs. 5,000; Bad debts Rs. 2,000. Required: Adjusted Trial Balance.

   Adjusted Trial Balance Particulars Debit (Rs.) Credit (Rs.) --------- Sales 4,00,000 Capital 2,00,000 Creditor 1,00,000 Purchases 3,00,000 Wages (50,000 + 5,000) 55,000 Fixed assets 1,00,000 Salaries 50,000 Debtors (80,000 - 2,000) 78,00...

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7. 7207615 marksNumericalHideAnswer

   Following is the Trial Balance of a trader as on 31 Chaitra: Opening Stock 1,00,000; Purchases 4,50,000; Plant 50,000; Drawing 10,000; Wages 20,000; Carriage 15,000; Salaries 30,000; Insurance 10,000; Debtors 70,000; Return (inward) 10,000; Rent 15,000; Cash 45,000 (all Dr); Sales 6,50,000; Capital 1,50,000; Creditors 10,000; Commission 15,000 (all Cr); Total 8,25,000. Additional: (a) Closing stock Rs. 1,60,000. (b) Pre-paid insurance Rs. 1,000. (c) Rent due for 2 months. (d) Goods worth Rs. 10,000 lost by theft and insurance company admitted the claim Rs. 6,000 only. (e) Bad debts Rs. 2,000 and provision for doubtful debts created @10%. Required: (i) Trading Account (ii) Profit and Loss Account (iii) Balance Sheet.

   Rent Rs. 15,000 is taken as 10 months' rent (Rs. 1,500 per month), so 2 months' rent due = Rs. 3,000, total rent = Rs. 18,000. Goods lost by theft Rs. 10,000: claim admitted Rs. 6,000 (asset), uninsured loss Rs. 4,000 (P&L). New debtors:

   $$ \begin{aligned} \text{New debtors} &= 70{,}000-2{,}000 \ &= 68{,}000 \end{aligned} $$

   provision @10% $=6{,}800$; charge to P&L:

   $$ \begin{aligned} \text{Charge to P&L} &= 2{,}000+6{,}800 \ &= 8{,}800 \end{aligned} $$

   Trading Account

   Dr.	Rs.	Cr.	Rs.
   To Opening stock	1,00,000	By Sales (6,50,000 - 10,000)	6,40,000
   To Purchases	4,50,000	By Closing stock	1,60,000
   To Wages	20,000	By Goods lost by theft	10,000
   To Carriage	15,000
   To Gross profit c/d	2,25,000
   Total	8,10,000	Total	8,10,000

   Profit and Loss Account

   Dr.	Rs.	Cr.	Rs.
   To Salaries	30,000	By Gross profit b/d	2,25,000
   To Insurance (10,000 - 1,000)	9,000	By Commission	15,000
   To Rent (15,000 + 3,000)	18,000
   To Loss by theft (uninsured)	4,000
   To Bad debts & Provision	8,800
   To Net profit (to Capital)	1,70,200
   Total	2,40,000	Total	2,40,000

   Net Profit = Rs. 1,70,200.

   Balance Sheet as on 31 Chaitra

   Liabilities	Rs.	Assets	Rs.
   Capital 1,50,000 + Net profit 1,70,200 - Drawings 10,000	3,10,200	Plant	50,000
   Creditors	10,000	Debtors 68,000 - Provision 6,800	61,200
   Outstanding rent	3,000	Closing stock	1,60,000
   		Cash	45,000
   		Prepaid insurance	1,000
   		Insurance claim receivable	6,000
   Total	3,23,200	Total	3,23,200

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8. 820768 marksNumericalHideAnswer

   Following transactions relating to machinery are given: 2072 Baishakh 1: Machinery purchased Rs. 2,00,000. 2073 Poush 1: Machinery purchased Rs. 3,00,000. 2074 Chaitra 31: First machinery sold Rs. 1,55,000. The company charged depreciation @15% on a fixed instalment method and accounts are closed on 31 Chaitra. Required: Machinery Account from 2072 to 2074.

   Depreciation @15% on fixed instalment (straight line) on cost. M1 cost Rs. 2,00,000 (Baishakh 1, 2072); M2 cost Rs. 3,00,000 (Poush 1, 2073, used 4 months in 2073). M1 sold on 2074 Chaitra 31 (year end), so full-year depreciation is charged in 2074 before sale.

   Machinery Account

   Year	Dr.	Rs.	Cr.	Rs.
   2072	To Bank (M1)	2,00,000	By Depreciation	30,000
   			By Balance c/d	1,70,000
   	Total	2,00,000	Total	2,00,000
   2073	To Balance b/d	1,70,000	By Depreciation	45,000
   	To Bank (M2)	3,00,000	By Balance c/d	4,25,000
   	Total	4,70,000	Total	4,70,000
   2074	To Balance b/d	4,25,000	By Depreciation	75,000
   	To Profit & Loss (profit on sale)	45,000	By Bank (M1 sold)	1,55,000
   			By Balance c/d (M2)	2,40,000
   	Total	4,70,000	Total	4,70,000

   Workings: 2072 dep (M1) $=30{,}000$. 2073 dep:

   $$ \begin{aligned} \text{2073 dep} &= 30{,}000,(M1)+15{,}000,(M2,4m) \ &= 45{,}000 \end{aligned} $$

   2074: M1 book value before sale:

   $$ \begin{aligned} \text{M1 book value before sale} &= 1{,}40{,}000-30{,}000 \ &= 1{,}10{,}000 \end{aligned} $$

   sold 1,55,000 → profit 45,000; M2 dep $=45{,}000$; total 2074 dep:

   $$ \begin{aligned} \text{total 2074 dep} &= 30{,}000,(M1)+45{,}000,(M2) \ &= 75{,}000 \end{aligned} $$

   closing balance (M2):

   $$ \begin{aligned} \text{closing balance (M2)} &= 2{,}85{,}000-45{,}000 \ &= 2{,}40{,}000 \end{aligned} $$

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9. 9207610 marksNumericalHideAnswer

   Opening Balance Sheet and Receipt and Payment Account of a Club are given. Balance Sheet as on 30 Chaitra 2073: Liabilities - Capital Fund 4,00,000; Due Rent 2,000; Creditors 20,000 (Total 4,22,000). Assets - Computer 1,00,000; 10% Investment 2,40,000; Subscription Due 4,000; Cash 78,000 (Total 4,22,000). Receipt and Payment Account for the year ended 30 Chaitra 2074: Receipts - Balance b/d 78,000; Admission fee 6,000; Tournament fund 80,000; Subscriptions 1,20,000 (Total 2,84,000). Payments - Rent 20,000; Interest on investment 10,000; Furniture 1,62,000; Creditors 8,000; Tournament expenses 60,000; Balance c/d 24,000 (Total 2,84,000). Additional: Due Rent Rs. 6,000; Advance subscription received for 2075 Rs. 20,000. Required: (i) Income and Expenditure Account (ii) Balance Sheet as on 30 Chaitra 2074.

   Subscription:

   $$ \begin{aligned} \text{Subscription} &= 1{,}20{,}000 - 4{,}000,(\text{opening due}) - 20{,}000,(\text{advance for 2075}) \ &= 96{,}000 \end{aligned} $$

   Interest on 10% investment:

   $$ \begin{aligned} \text{Interest on 10% investment} &= 10% \times 2{,}40{,}000 \ &= 24{,}000 \end{aligned} $$

   (income); accrued interest $= 24{,}000$ (asset). The Rs. 10,000 on the payments side is taken as interest paid, as shown in the Receipts and Payments Account.

   Rent:

   $$ \begin{aligned} \text{Rent} &= 20{,}000 - 2{,}000,(\text{opening due}) + 6{,}000,(\text{closing due}) \ &= 24{,}000 \end{aligned} $$

   Tournament fund Rs. 80,000 is capitalised; tournament expenses Rs. 60,000 are met from it, leaving a fund of Rs. 20,000. Creditors closing:

   $$ \begin{aligned} \text{Creditors closing} &= 20{,}000-8{,}000 \ &= 12{,}000 \end{aligned} $$

   Income and Expenditure Account (year ended 30 Chaitra 2074)

   Expenditure	Rs.	Income	Rs.
   To Rent	24,000	By Subscription	96,000
   To Interest paid	10,000	By Admission fee	6,000
   To Surplus (excess income)	92,000	By Interest on investment (accrued)	24,000
   Total	1,26,000	Total	1,26,000

   Balance Sheet as on 30 Chaitra 2074

   Liabilities	Rs.	Assets	Rs.
   Capital Fund 4,00,000 + Surplus 92,000	4,92,000	Computer	1,00,000
   Tournament fund (80,000 - 60,000)	20,000	10% Investment	2,40,000
   Advance subscription	20,000	Accrued interest on investment	24,000
   Due rent	6,000	Furniture	1,62,000
   Creditors	12,000	Cash	24,000
   Total	5,50,000	Total	5,50,000

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10. 1020764 marksNumericalHideAnswer

    A trader commenced business with Rs. 1,50,000. He used to withdraw Rs. 2,000 per month for his personal use. His position at the end of the year is as under: Furniture Rs. 1,00,000; Debtors Rs. 40,000; Creditors Rs. 30,000; Bank Loan Rs. 40,000; Stock Rs. 1,40,000; Cash Rs. 40,000. Interest on Bank Loan due @10%. Required: (i) Statement of Affairs Showing Closing Capital (ii) Statement of Profit and Loss.

    Opening capital $= 1{,}50{,}000$. Total drawings:

    $$ \begin{aligned} \text{Total drawings} &= 2{,}000\times12 \ &= 24{,}000 \end{aligned} $$

    Interest on bank loan due:

    $$ \begin{aligned} \text{Interest on bank loan due} &= 10% \times 40{,}000 \ &= 4{,}000 \end{aligned} $$

    (i) Statement of Affairs (at year end)

    Liabilities	Rs.	Assets	Rs.
    Creditors	30,000	Furniture	1,00,000
    Bank Loan	40,000	Debtors	40,000
    Interest on loan due	4,000	Stock	1,40,000
    Closing capital (bal.)	2,46,000	Cash	40,000
    Total	3,20,000	Total	3,20,000

    (ii) Statement of Profit or Loss

    $$ \begin{aligned} \text{Profit} &= \text{Closing capital} + \text{Drawings} - \text{Opening capital}\ &= 2{,}46{,}000 + 24{,}000 - 1{,}50{,}000\ &= \textbf{Rs. } 90{,}000 \end{aligned} $$

    The business earned a net profit of Rs. 90,000 during the year.

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11. 1120762 marksNumericalHideAnswer

    Following information are provided: Provision for bad debts (opening) Rs. 10,000; Bad debts Rs. 5,000; Debtors Rs. 60,000; Create provision for doubtful debts @10%. Required: Provision for doubtful debts account.

    New provision required: $$ \begin{aligned} \text{New provision required} &= 10% \times 60{,}000 \ &= 6{,}000 \end{aligned} $$ Provision for Doubtful Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 5,000 By Balance b/d (open...

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12. 1220763 marksHideAnswer

    Write in brief about business entity concept with suitable examples.

    The business entity concept treats the business as a separate entity distinct from its owner. All records are kept from the point of view of the business, not the owner, so the private affairs of the proprietor are not mixed with the bus...

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13. 1320765 marksNumericalHideAnswer

    Following transactions of a government office are given: 2074-6-2: A cheque of Rs. 30,000 issued to purchase furniture. 2074-6-8: Advance given to Janak Rs. 40,000 to purchase computer. 2074-6-12: Advance of Janak cleared as per bill of Rs. 45,000 submitted by him. 2074-6-28: Issued a cheque of Rs. 43,000 to distribute salary for the month of Asoj after deducting P.F. Rs. 10,000 and Income Tax Rs. 2,000. Required: Journal Vouchers.

    2074-6-2 - Furniture purchased by cheque:

    Particulars	Debit (Rs.)	Credit (Rs.)
    Furniture A/c ..... Dr.	30,000
    To Bank A/c		30,000

    2074-6-8 - Advance to Janak for computer:

    Particulars	Debit (Rs.)	Credit (Rs.)
    Advance (Janak) A/c ..... Dr.	40,000
    To Bank A/c		40,000

    2074-6-12 - Computer bill Rs. 45,000; advance Rs. 40,000 adjusted, balance Rs. 5,000 paid by cheque:

    Particulars	Debit (Rs.)	Credit (Rs.)
    Computer A/c ..... Dr.	45,000
    To Advance (Janak) A/c		40,000
    To Bank A/c		5,000

    2074-6-28 - Salary for Asoj; gross:

    $$ \begin{aligned} \text{Gross salary} &= 43{,}000+10{,}000+2{,}000 \ &= 55{,}000 \end{aligned} $$

    Particulars	Debit (Rs.)	Credit (Rs.)
    Salary A/c ..... Dr.	55,000
    To Provident Fund A/c		10,000
    To Income Tax A/c		2,000
    To Bank A/c		43,000

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14. 1420765 marksNumericalHideAnswer

    Following transactions are given: 2074-2-1: Balance at Bank Rs. 80,000. 2074-2-5: Received Bank order and budget release order of Rs. 4,00,000. 2074-2-12: Issued a cheque of Rs. 60,000 to purchase machinery. 2074-2-23: Out of advance of Rs. 10,000 of Mr. Kafle cleared as per bill of Rs. 8,000 and refund of Rs. 2,000. 2074-2-30: Salary for the month of Jestha Rs. 1,00,000 distributed after deducting provident fund as per rule. Required: Bank Cash Book.

    The budget release order Rs. 4,00,000 is recorded in the budget column (memorandum). Mr. Kafle's advance Rs. 10,000: expenditure Rs. 8,000 booked, refund Rs. 2,000 returned to bank. Provident fund on salary is taken @10% (as per rule)

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15. 1520766 marksNumericalHideAnswer

    Following are given (Budget Head: Annual Budget; Expenditure upto month of Baisakh; Expenditure of Jestha): Salary 3,00,000 / 2,00,000 / 30,000; Allowance 1,00,000 / 40,000 / 20,000; Office Material 50,000 / 5,000 / 40,000; Rent 60,000 / 4,000 / 50,000; Furniture 90,000 / 60,000 / 10,000. Additional: Total revolving fund release Rs. 5,50,000; Petty cash fund balance Rs. 1,000. Required: Statement of expenditure for the month of Jestha showing Bank Balance.

    Statement of Expenditure for Jestha showing Bank balance

    Budget Head	Annual Budget	Up to Baisakh	Jestha	Total Expenditure	Budget Balance
    Salary	3,00,000	2,00,000	30,000	2,30,000	70,000
    Allowance	1,00,000	40,000	20,000	60,000	40,000
    Office Material	50,000	5,000	40,000	45,000	5,000
    Rent	60,000	4,000	50,000	54,000	6,000
    Furniture	90,000	60,000	10,000	70,000	20,000
    Total	6,00,000	3,09,000	1,50,000	4,59,000	1,41,000

    Balance at Bank:

    $$ \begin{aligned} \text{Bank balance} &= \text{Revolving fund released} - \text{Total expenditure} - \text{Petty cash balance}\ &= 5{,}50{,}000 - 4{,}59{,}000 - 1{,}000\ &= \textbf{Rs. } 90{,}000 \end{aligned} $$

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16. 1620762 marksHideAnswer

    Clarify the meaning of Trial Balance.

    A Trial Balance is a statement that lists the debit and credit balances of all ledger accounts on a particular date to check the arithmetical accuracy of the books.

    It is prepared by placing every ledger balance in either the debit or the credit column. If the total of the debit column equals the total of the credit column, the books are considered arithmetically correct. The Trial Balance is not an account; it is only a working statement and also serves as the basis for preparing the final accounts.

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17. 1720762 marksHideAnswer

    Write the meaning of Reserve and Provision.

    Reserve: A reserve is an amount set aside out of profits to strengthen the financial position or to meet future needs. It is an appropriation of profit (made after ascertaining net profit), for example a general reserve. Provision: A pro...

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18. 1820762 marksHideAnswer

    Give the meaning of Journal Proper.

    Journal proper (general journal) is the book of original entry used to record transactions that cannot be recorded in any special subsidiary book (cash book, purchase book, sales book, purchase return book, sales return book, bills books).

    It is used for opening entries, closing entries, adjustment entries, rectification of errors, and the credit purchase or sale of fixed assets. For example, purchase of furniture on credit is recorded in the journal proper.

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19. 1920763 marksHideAnswer

    Mention any three objectives of Government Accounting System.

    Three objectives of the government accounting system are:

    1. To record government revenue and expenditure systematically and to show the receipt and payment of public money.
    2. To ensure expenditure is within the budget and made only for authorised purposes, thereby controlling public spending.
    3. To provide reliable financial information for preparing budgets, for audit, and for making the government accountable to parliament and the public.

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20. 2020763 marksHideAnswer

    State any three differences between governmental and commercial accounting.

    Basis	Government Accounting	Commercial Accounting
    Objective	To record collection and authorised spending of public money; no profit motive	To ascertain profit or loss and financial position of the business
    Basis	Maintained on the basis of the approved budget and government rules	Maintained on the basis of accounting principles (GAAP)
    Result	Prepares statements of revenue and expenditure; does not prepare Profit and Loss Account	Prepares Trading, Profit and Loss Account and Balance Sheet

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21. 2120762 marksNumericalHideAnswer

    Following transactions are given: Started business with cash Rs. 1,00,000 and furniture Rs. 50,000. Purchased goods worth Rs. 75,000 on credit. Wages paid Rs. 10,000. Sold goods costing Rs. 20,000 for Rs. 25,000. Required: Accounting Equation.

    Effect of each transaction on Assets = Liabilities + Capital:

    Transaction	Cash	Furniture	Stock	=	Creditors	Capital
    Started business	1,00,000	50,000	-	=	-	1,50,000
    Goods on credit	-	-	+75,000	=	+75,000	-
    Wages paid	-10,000	-	-	=	-	-10,000
    Sold goods (cost 20,000) at 25,000	+25,000	-	-20,000	=	-	+5,000
    Total	1,15,000	50,000	55,000	=	75,000	1,45,000

    $$ \begin{aligned} \text{Assets} &= 1{,}15{,}000 + 50{,}000 + 55{,}000 \ &= 2{,}20{,}000 \ \text{Liabilities} + \text{Capital} &= 75{,}000 + 1{,}45{,}000 \ &= 2{,}20{,}000 \end{aligned} $$

    The equation balances at Rs. 2,20,000. (Wages reduce capital; the sale gives a profit of Rs. 5,000 which increases capital.)

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22. 2220764 marksNumericalHideAnswer

    Following transactions are given: Goods sold for cash Rs. 50,000 and allowed discount Rs. 500. Goods purchased from Mr. Khadka for Rs. 25,000. Cash paid to Mr. Khadka Rs. 23,000 in full settlement of his account. Salary paid Rs. 10,000. Required: (i) Journal Entries (ii) Khadka's Account.

    (i) Journal Entries

    Particulars	Debit (Rs.)	Credit (Rs.)
    Cash A/c ..... Dr. Discount Allowed A/c ..... Dr.   To Sales A/c	49,500 500	50,000
    Purchases A/c ..... Dr.   To Khadka A/c	25,000	25,000
    Khadka A/c ..... Dr.   To Cash A/c   To Discount Received A/c	25,000	23,000 2,000
    Salary A/c ..... Dr.   To Cash A/c	10,000	10,000

    Discount received from Khadka:

    $$ \begin{aligned} \text{Discount received from Khadka} &= 25{,}000 - 23{,}000 \ &= \textbf{Rs. } 2{,}000 \end{aligned} $$

    (ii) Khadka's Account

    Dr.	Rs.	Cr.	Rs.
    To Cash A/c	23,000	By Purchases A/c	25,000
    To Discount Received A/c	2,000
    Total	25,000	Total	25,000

    The account is fully settled (nil balance).

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