Question

Q12) A bill for Rs. 10000 is drawn by A & B which is duly accepted by the latter. The bill is duly met by B on its due date. Show what entries will be passed in the books of A under each of the following circumstances :-                                            


1) If A retains the bill till the due date.

2) If he discounts it with his banker for 9750.

3) If he endorses it to his creditor C, in full settlement of his debt of 10,200.

4) If he sends it to his banker for collection.

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Answer 1

1) If A retains the bill till the due date .