Question

4) Suresh owed 25,500 to Raj on 1" March 2014. He accepted
a bill for 25,000 payable after one month, Raj allowed him
discount of 500. Raj endorsed the bill to Hemanth in
settlement of his debt for 26,000. Hemanth discounted the
bill with his bank for 24,800, the bill was honoured on the
due date. Pass Journal entries in the books of all the parties.

Answer 1

Answer:

In books of Raj

2014

mar 1 B/R.account dr 25000

discount allowed dr 500

To Suresh. 25500

mar 1 Hemant. dr 26000

To B/R account. 25000

To discount received 1000

In books of Suresh

mar 1 Raj. dr 25500

To B/P. account. 25000

To discount received 500

Apr 4 B/p account. dr 25000

To bank account. 25000

I.n books if Hemant

mar 1 B/R. account dr 25000

discount allowed dr 1000

To Raj. 26000

mar 1 bank account. dr 24800

discount charges dr 200

Ti B/R account. 25000