Question

On 01.01.16, B accepts two bills for Rs. 5000 and Rs. 6000 respectively, the amount payable to A. First bill is payable after two months and second bill is payable after three months. On 04.02.16, A gets the second bill discounted from bank at a discount of Rs. 400. On 15.02.16, First bill of Rs. 5000 is endorsed in favour of C in full and final settlement of Rs. 5500 due to him.The first bill is duly honoured on the due date. However, the second bill is dishonoured and bank pays Rs. 50 as noting charges.

Pass journal entries in the books of A and B.​

Answer 1

Answer:

IN THE BOOKS OF A

1/1/16 Bills receivable (1) a/c dr. ,5000

Bills receivable (2) a/c dr 6000

To B a/c. 11000

4/2/16. Bank a/c dr. 5600

discount a/c dr. 400

To B/R (2) A/c. 6000

15/02/16. C A/C dr. 5000

To b/r (1) a/c. 5000

B a/c dr. 6050

To bank a/c. 6000

To noting charges a/c. 50