Question

x sold goods to y for R$ 10,000 on 1/4/2020
for 6 months. Y accepts the bill and returns to x on same day. on due date
a) Bill is honoured
b] Bill is dis honoured.​

Answer 1

Answer:

In the books of x

1.

1-4-2020

Y a/c ... Dr

to sales a/c

( being goods sold on credit to y)

2.

1-4-2020

Bill receivable a/c ... Dr

to y a/c

( being bill drawn and accept)

3. a if the bill is honoured

4-10-2020

cash a/c ... Dr

to bills receivable a/c

( being bill honoured)

3. b if the bill is dishonoured

4-10-2020

Y a/c ... Dr

to bills receivable a/c

( being bills dishonoured)