On 1st January, 2019, Rolly owed 50,000 to Polly. On 1st February, he accepted a
draft for 3 months drawn on him by Polly for the amount. On the due date, the bill was
dishonoured, the noting charges being * 500. Pass the Journal entries in the books of
Polly in each of the following cases:
(1) Bill is held till maturity by Polly;
(ii) Polly endorses the bill in favour of Golly immediately and
(ii) Bill is discounted with the bank at 12% p.a. immediately.
Answers
Answer:
2019, Rolly owed 50,000 to Polly. On 1st February, he accepted a
draft for 3 months drawn on him by Polly for the amount. On the due date, the bill was
dishonoured, the noting charges being * 500. Pass the Journal entries
g 50 poisor this question
Explanation:
1 case
1feb
Bill rece. A/C Dr. 50,000
To Rolly's A/C 50,000
4 May at maturity date
Rolly's A/C Dr. 50,500
To bill Rece. 50,500
To Noting charges 500
Now 2nd case
1feb
bill rece. A/C Dr. 50,000
To Rolly's A/C 50,000
1feb
Golly Dr. 50,000
To Bill Rece. A/C 50,000
Now 4th May
Rolly's A/C Dr. 50,500
To Golly 50,500
3rd case
1feb
Bill rece. A/C Dr. 50,000
To Rolly's A/C 50,000
Bank A/C Dr. 48000
Discount A/C Dr. 1500
to Bill rece. 50,000
On 4th may
Rolly's A/C Dr. 50,500
To Bank A/C 50,500 Answer