Question

For goods sold A draws upon B a bill for 5000 on 1.4.16 at 3 months after date after receiving B s acceptance A endorses it on to X and X to Y the bill dishonoured by B on due date show journal entries in the book of all the parties

Answer 1

Answer:

In the books of A

B/R a/c dr.

To B 's a/c

X's a/c. dr.

To B/R a/c

In the books of B

A's a/c. dr.

To B/P a/c

B/P a/c dr.

To y's a/c

In the books of x

B/R a/c dr.

To A 's a/c