On 1st July, 2016, A draws on B, who owed him ` 25,000, two bills, one for ` 15,000 for three months and
another for ` 10,000 for two months. B accepts these bills.
A endorses on 3rd July the first bill to his creditor C in full settlement of his account of ` 15,500 and discounts
the second bill on 4th July with his banker @ 12% p.a. The first bill is duly paid at maturity but the second bill
is dishonoured and ` 150 are paid as noting charges. On 5th Setember A draws and B accepts a third bill for
three months for ` 10,450 in lieu of the dishonoured bill. This bill is duly paid at maturity.
Give Journal Entries to record these transactions in the books of A .
Answers
Hello there is no longer be a great day beta is a great day beta is a great day beta is a great
Explanation:
Journal in the books of A
Date Particulars Amount (dr) Amount (cr)
1st July Bills receivable a/c dr 15000
Bills receivable a/c dr 10000
to B a/c 25000
3rd july C a/c dr 15500
to bills receivables a/c 15500
4th july discount allowed a/c dr 300
to Bills receivables a/c 300
4th sep Cash a/c dr 15000
to Bills Receivable a/c 15000
4th sep B a/c dr 10150
to Bills receivable a/c 10000
to noting charges a/c 150
5th sep Bills receivable a/c dr 10450
to B a/c 10450
8th Nov Cash a/c dr 10450
to Bills Receivables a/c 10450