15. on Ist January 2018, Akshay draws two bills of exchange for 16,000 and
The bill of exchange for 16,000 is for two months while the bill of exchange for 25,000
is for three months. These bills are accepted by Vishal, on 4th March, 2018, Vishal
requests Akshay to renew the first bill with interest at 15% p.a. for a period of two months.
Akshay agreed to this proposal, on 25th March, 2018, Vishal retires the acceptance for
25,000, the interest rebate i.e. discount being * 250. Before the due date of the renewed
bill, Vishal becomes insolvent and only so paisa in a rupee could be recovered from his
estate.
show the Journal Entries (with narrations) in the books of Akshay. (QP May 19)
Answers
Answer:
on Ist January 2018, Akshay draws two bills of exchange for 16,000 and
The bill of exchange for 16,000 is for two months while the bill of exchange for 25,000
is for three months. These bills are accepted by Vishal, on 4th March, 2018, Vishal
requests Akshay to renew the first bill with interest at 15% p.a. for a period of two months.
Akshay agreed to this proposal, on 25th March, 2018, Vishal retires the acceptance for
25,000, the interest rebate i.e. discount being * 250. Before the due date of the renewed
bill, Vishal becomes insolvent and only so paisa in a rupee could be recovered from his
estate.
show the Journal Entries (with narrations) in the books of Akshay. (QP May 19)
Explanation:
on Ist January 2018, Akshay draws two bills of exchange for 16,000 and
The bill of exchange for 16,000 is for two months while the bill of exchange for 25,000
is for three months. These bills are accepted by Vishal, on 4th March, 2018, Vishal
requests Akshay to renew the first bill with interest at 15% p.a. for a period of two months.
Akshay agreed to this proposal, on 25th March, 2018, Vishal retires the acceptance for
25,000, the interest rebate i.e. discount being * 250. Before the due date of the renewed
bill, Vishal becomes insolvent and only so paisa in a rupee could be recovered from his
estate.
show the Journal Entries (with narrations) in the books of Akshay. (QP May 19)
Journal Entries in the books of Akshay
Explanation:
Pls refer to the attached pic
