Journal Entry for Full/Final Settlement Last Updated : 05 Apr, 2023 Improve Improve Like Article Like Save Share Report A business may allow or receive a discount at the time of full and final settlement of the accounts of debtors or creditors. Journal Entry: Example: 01 April 2022: Purchased goods from Sayeba at the list price of ₹10,000 at a 10% Trade Discount. 05 April 2022: Returned goods to Sayeba for the list price of ₹1,000. 10 April 2022: Paid cash to Sayeba ₹7,500 in full & final settlement of her account. Solution: Example: 01 May 2022: Sold goods to Nisha at the list price of ₹50,000 at a 2% Trade Discount. 05 May 2022: Nisha returned the goods worth ₹5,000. 10 May 2022: Cash received from Nisha ₹43,000 in full & final settlement of her account. Solution: Like Article Suggest improvement Previous Journal Entry for Discount Allowed and Received Next What is a Compound Journal Entry ? Share your thoughts in the comments Add Your Comment Please Login to comment...