Question

A sold goods to B for Rs 20,000 on 15th march 2020. on the same day, B accepted a

bill drawn upon him by A at four months for Rs 20,000, A discounted the bill on 15th

April 2020 at 18% p.a. at his bank and B met the bill on maturity. Make the Journal

entries in Books of A.​

Answer 1

Answer:

Explanation:

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JOURNAL ENTRIES IN THE BOOK OF A

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B a/c dr. 20,000

To Sales a/c cr. 20,000

( sale of goods to B )

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Bills receivable a/c dr. 20,000

To B a/c cr. 20,000

( 4 month acceptance received from

B for the amount due from him )

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Bank a/c dr. 18,800

Discount a/c dr. 1,200

To Bills receivable a/c cr. 20,000

( being bill discounted with bank

at 18% for 4 months)

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Cash a/c dr. 20,000

To Bills receivable a/c cr. 20,000

( bill met on due date )

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