Question

1.     On 1st January 2020 P drew a bill of exchange on Q for Rs 50,000 for 3 month which was duly accepted by the later. On the same date P endorsed the bill to his creditor R. R endorsed the same bill to his creditor S. S discounted the bill on 1st February 2020 @ 12% P.a. On the date of maturity, the bill was dishonoured & bank paid noting charges of Rs 600. Pass the necessary journal entries in the​

Answer 1

Answer:

In books of P

1st jan. B/R. a/c. Dr 50000

To Q. 50000

1st jan. R. Dr 50000

To B/R. 50000

4th Apr. Q. Dr. 50600

To R. 50600

In books of Q

1st jan. P Dr. 50000

To B/P. 50000

4th Apr. B/P. Dr. 50000

Noting charges Dr. 600

To P. 50600

In books of R

1st jan. B/R. Dr. 50000

To P. 50000

1st jan. S Dr. 50000

To B/R. 50000

4th Apr. P. Dr. 50600

To S. 50600

In books of S

1st jan. B/ R. Dr. 50000

To. R. 50000

1stfeb. Banka/c. Dr. 49000

discount charge Dr. 1000

To B/ R. 50000

4th Apr. R. Dr. 50600

To bank a/c. 50600