Question

'X' draws on 'Y' a bill for Rs.4,000/- which was duly accepted by

'Y'. 'Y' meet the bill on due date. Show the journal entries in the

books of 'X' , 'Y' and 'Z' under the following cases:-

a) If 'X' retain the bill till due date

b) If 'X' discounted the bill with bank under Rs.100/- discount.

c) If 'X' endorses the bill to his creditor 'Z' in full settlement of

his debts of Rs.4,080/-.

d) If 'X' sends the bill to his banker for collection​

Answer 1

Answer:

B),lf 'X'doscounted the bill with bank under Rs.100/-discount