Question

On 15th October, 2016, Y purchased goods worth ₹ 75,000 from X, and accepted a three

months bill for this amount drawn by X. On the due date, it was dishonoured. Noting charges

paid by X ₹ 600. On 18th January, 2017, Y requested X for renewal of the bill for another two

months, for which X agrees, provided that interest is paid @ 15% p.a. in cash. Make Journal

entries of these transactions in the books of X and Y​

Answer 1

1. purchase A/c..dr
2. To x A/c.. cr
3. x a/c.. dr
4. to bills payable a/c..cr
5. 18th January 2017 x A/c .. Dr
6. cash/bank a/c.. cr
7. x a/c.. dr
8. To bills payable a/c.. cr
9. x a/c.. dr
10. to

Explanation:

y purches the good

bills acptted