On 1st Oct. 2017,Mr Ram discounted B/R of Rs 40,00,000 with HDFC Bank at the rate of 12percent p.a. period of Bill 5 months. Make a journal entry in the books of Bank.
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Answer:
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
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