Question

mehra's acceptance for 2000 in favour of rao met by endorsement of sethi's acceptance (in favour of mehra) for the same amount - BOE entry?​

Answer 1

In the Books of Vibha
Journal Entries
Date Particulars LF Amt.(Dr) Amt.(Cr)
2011
2011
Jan
1
1 Sudha Dr
To Sales A/c
(Being goods sold to Sudha)
18
,
000
18,000
18
,
000
18,000
Jan
1
1 Bills Receivable A/c Dr
To Sudha
(Being acceptance received)
18
,
000
18,000
18
,
000
18,000
Jan
1
1 Geeta Dr
To Bills Receivable A/c
(Being acceptance of Sudha endorsed to Geeta)
18
,
000
18,000
18
,
000
18,000
Feb
27
27 Sudha Dr
To Geeta
(Being acceptance of Sudha cancelled before maturity)
18
,
000
18,000
18
,
000
18,000
Feb
27
27 Geeta Dr
To Cash A/c
(Being payment made to Geeta and bill received)
18
,
000
18,000
18
,
000
18,000
Feb
27
27 Bills Receivable A/c Dr
To Sudha
To Interest A/c
(Being new acceptance received with interest Rs.
200
200)
18
,
200
18,200
18
,
000
18,000
200
200
Mar
2
2 Cash A/c Dr
To Sudha
(Being payment received on maturity)
18
,
200
18,200
18
,
200
18,200
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