Question

30) On 1st January 2008, A sold goods for 50,000 and drew three bills of exchange for 8,000,
20,000 and 22,000 for 2 months, 3 months and 4 months respectively.
First bill was endorsed to C on 04.01.2008, second bill was discounted with bank on 01.02.2008 @ 8%
p.a. and third bill was retained till maturity.
All the bills were honoured on the due date.
Pass entries in the books of A and B. (With narrations)​

Answer 1

Answer:

in the books of A

B            dr   50000

to sales        50000

B/R 1     dr     8000

B/R 2    dr     20000

B/R 3    dr     22000

to B               50000

C           dr    8000

to B/R 1           8000

bank                           dr  18400      

discounting charge   dr  1600

to B/R 2                                  20000

 

bank         dr  22000

to B/R 3          22000

in the books of b

B/P 3        dr. 22000

To Cash          22000

1.2.2008    B/P 2             dr.   20000

                   to bank                 20000

Explanation: