Question

Honoured our own acceptance by cheque Rs. 5000. Required.. Journal

Answer 1

go brainliest in a chance of being the next day so far away and it would not sure

Answer 2

our own acceptance entails amount Payable by us in the form of negotiable Instruments..Eg.Bills payable in this case

This transaction affects two accounts..

billspayable account (our own acceptance) , Bank account(honoured by Cheque) ..Both of them are Real accounts (all assets and Liabilities come under Real accounts; Bank balance - Asset; Bills payable - liability)


Golden Rule of accounting fof Real assets are

debit what comes in , credit what goes out

or Debit if asset increases/Liability Decreases and credit if asset Decreases/liability increases..


here Billspayable liability is Decreasing and Bank. balance is Decreasing..



So the Journal Entry will be..



Billspayable account Dr 5000

To Bank a/c. 5000

(,being liability settled by Cheque)