Question

chandra drew a bill for Rs 5000 at 3 months on rana rana accepted the same and sent it to chandra chandra deposited the same with his bankers for collection the bill was dishonoured on presentation on the due date bank incurred Rs 10 as noting charges give journal entries in the book of both the parties​

Answer 1

Answer:

in the books of Chandra account

bill receivable a/c dr 5,000

to Rana a/c 5,000

bill sent for collection a/c dr 5,000

to bill receivable a/c 5,000

Rana a/c dr 5,010

to bill sent for collection a/c 5010

in the books of Rana

Chandra a/c dr

to bills payable a/c

bills payable a/c dr 5,000

noting charges a/c dr 10

to Chandra a/c 5010