Question

A bills receivable for rs 1200 discounted with bank for rs 1150

Answer 1

Journal Entry :

Bank A/C   Dr   Rs.1150

Discount A/C  Dr   Rs.50

    To Bills Receivable A/C   Rs.1200

(Being bill receivable discounted with bank)

Explanation:

When bill was received ,it would have been debited. But, when it is discounted with bank, bill goes out. Hence, credited.

When bill is discounted with bank, bank balance increases . Hence, debited.

Bank charges some amount on bill for discounting.Discount charges should be debited ,since it is a loss.

Answer 2

Hey mate ✌️✌️


Journal Entry ⏬⏬⏬

In the books of Drawer ⤵️⤵️


Bank A/c...................................................Dr..1150
Discount charge A/c................................Dr..50
............To bill Receivable A/c..1200



➡️There is no Entry in book of Drawee.


✨ Hope this helps you ✨