Question

A sold goods to B on 1st october 2009 for ₹ 10,000 and drew a bill for the same for 4 months. B accepted the bill and returned it to A. B retired her acceptance on 4th november , 2009 under rebate of 5% per annum. Give journal entries in the books of A and B.​

Answer 1

Explanation:

In The Books Of A

1 Oct B Dr. 10,000

To sales account 10,000

1 Oct B/R account Dr. 10,000

To B

4 Nov Cash a/c Dr. 9750

Rebate a/c Dr. 250

To B/R a/c 10,000

In The Books Of B

1 Oct Purchase a/c Dr. 10,000

To A 10,000

1 Oct A Dr. 10,000

To B/P a/c 10,000

4Nov. B/P a/c Dr. 10,000

To rebate a/c 250

To Cash a/c 9750

There is no info about new bill so we assumed that bill is cleared.