Question

On 1st oct.2017, Mr Ram discounted B/R of Rs. 40, 00,000 with HDFC Bank at the

rate of 12% P.a. Period of Bill is 5 months. Make a journal entry in the books of bank
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Answer 1

Explanation:

B/R a/c. dr 40,00,000

to Ram. a/c 38,00,000

to discounting charges a/c 2,00,000

(Being bill discounted by ram)

Hope it helps you

Answer 2

Given: B/R discounted for Rs. 40,00,000

Rate = 12% p.a

period of bill = 5 months

To Find: Pass the Journal Entry

Solution:

Bills Receivable: Bills Receivable is also known as 'accounts receivable' Bills Receivable is a legal agreement, a bill, asserting that the customer agrees to make full payment of what they owe to a business, sometimes with an additional component for interest at a later date. This negotiable document can often be transferred.

Particulars                                                                        Amount        Amount

B/R A/C Dr.                                                                     4000000

            To, Ram A/C                                                                             3800000

            To, Discount Charges A/C                                                       200000

[ Being bill discounted by Ram]