Question

a sold goods to B for rs 4000and drew a bill for the amount due at 3 months for the amount. B after giving his acceptance returned the bill to A. A discount it from his bank for rs 3900. on due date bill returned dishonoured and bank paid rs 50 as noting charges. give journal entries in the books of A only
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Answer 1

Right Answer Is

SOLUTION

A's Journal

B's A/c Dr4,000 To Sales A/c4,000(Being goods sold)Bills Receivable A/c Dr4,000 To B A/c4,000(Being acceptance received)Bank A/c Dr3,900Discount A/c Dr100 To Bills Receivable A/c4,000(Being bill dishonoured and noting charges paid by bank)After 1 month  Cash A/c Dr. 4,050 To B A/c4,050(Being amount of bill received).