Question

Raju draws a bill on Monika for 60000 Raju want to endorse it to ishaan in settlement of 70000 at 2%discount with the help of Monika acceptance and balance in cash. how much cash Raju pay to ishaan

Answer 1

B/R a/c-Dr
To monika a/c 60000
Ishaan a/c-Dr 70000
To B/R a/c 60000
To Discounts received a/c 1400 (70000 ×2%)
To cash a/c 8600 (60000 +1400 - 70000 )

Answer 2

Cash paid by Raju to Ishaan will be ₹8,600

At times, when the buyer is not able to pay the amount of the transaction right at the moment of sales, a bill is drawn by the seller on the buyer. It gives the buyer a credit period and ensures a specific date when the buyer has to pay the amount. Raju drew a bill on Monika for 60,000 and wants to endorse it to Ishaan for the full settlement of ₹70,000 at 2% discount and the rest with cash.

The amount to be paid to Ishaan by Raju= 70,000 - 2% discount

                                                            = 70,000 - 1400 = ₹68,600

The amount that will be settled by endorsing Monika's bill= ₹60,000

The amount that Raju will have to pay in cash= 68,600 - 60,000

                                                                    = ₹8,600