Question 31.
X draws a bill on Y for ₹ 2,000 on 1st January, 2017, Y accepts the same and returns it to X. The bill was drawn by X in full settlement of a debt owing by Y amounted to ₹ 2,050. X discounts the bill on the same date with the Central Bank of India for ₹ 1,980. At maturity the bill was duly met by Y. Give the entries in the books of X and Y. Suppose the bill is dishonoured, what entries witll be passed?
Answers
drawn by X in full settlement of a debt owing by Y amounted to ₹ 2,050. X discounts l was duly met by Y. Give the entries in the books of X and Y. Suppose the bill is dishonoured, what entries witll be passed...........Insurance prepaid is ₹ 5,000.
(iii) Depreciate Machinery and Furniture @ 10% and 15% p.a. respectively. Machinery included a machine which was purchased for ₹ 38,500 on 30th September, 2017.
(iv) Goods costing ₹ 10,000 were taken by the proprietor for his personal use but no entry has been made in the books of account. These goods were purchased paying IGST @
A journal entry is a business transaction record in business's accounting books.
- The correct journal entries are -
In books of X
Bills Receivable A/c Dr.2000
Discount Allowed Dr. 50
To Y's A/c 2050
( Being Y's acceptance was received and discount was allowed)
Bank A/c Dr. 1980
Discount Charges Dr. 20
To Bills Receivable A/c 2000
( Being Y's acceptance bank discounted )
In books of Y
X's A/c Dr.2050
To Bills payable Dr. 2000
To Discount received A/c 50
( Being X''s bill accepted)
Bills Payable A/c Dr 2000
To bank a/c 2000
( Being Y's acceptance bank discounted )