Question

A bill for 6,000 payable four months after date is drawn by Sarit on Indra and accepted by the latter
Show the entries if Sarit sends it to his bankers for collection and the bill is collected.​

Answer 1

Answer:

Journal in books of Sarit

Bills receivable a/c. Dr. 6000

To Indra. 6000

Bill sent for collection Dr 6000

To Bill receivable a,/c. 6000

Bank account. Dr. 6000

To Bills sent for collection 6000

In books of Indra

Sarit. Dr. 6000

To bills payable a/c 6000

Bill payable a/c. Dr 6000

Tobank account. 6000