Question

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?

Answer 1

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 @

Answer 2

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 )