X sold goods to Y on 1st April, 2015 for Rs. 20,000 on credit and drew upon him a bill for the same PLEASE IT IS URGENT
Answers
Answer:
Date of Bill
Tenure
Calculation
Due Date
(i) December 01, 2018
60 Days
30 (December) + 30 (January) + 3 days of grace
February 02, 2019
(ii) April 30, 2019
2 Months
2 Months from April 30, 2019 would be June 30, 2019 + 3 days of grace
July 03, 2019
(iii) January 28, 2019
1 Month
1 Month from January 28, 2019 would be February 28, 2019 + 3 days of grace
March 03, 2019
(iv) November 23, 2018
2 Months
2 Months from November 23, 2018 would be January 23, 2019 + 3 days of grace
January 26, 2019, but it is a national holiday so, due date would be one day before i.e., January 25, 2019
(v) May 29, 2018
4 Months
4 Months from May 29, 2019 would be September 29, 2019 + 3 days of grace
Answer:
Explanation:
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JOURNAL ENTRIES IN THE BOOK OF X
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Y a/c dr. 20,000
To Sales a/c cr. 20,000
(Sold goods to y on
credit for 20,000)
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Bills Receivable a/c dr. 20,000
To Y's a/c cr. 20,000
(being bill of exchange drawn on
y's due for payment on
4'th July)
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Bank a/c dr. 19,700
Discount a/c dr. 300
To Bills receivable a/c cr. 20,000
(Bill discounted with bank)
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Cash a/c dr. 20,000
To Bills receivable a/c cr. 20,000
(bill due on maturity)
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JOURNAL ENTRIES IN THE BOOK OF Y
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Purchase a/c dr. 20,000
To x a/c cr. 20,000
(good purchased from x
on credit)
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X a/c dr. 20,000
To Bills payable a/c cr. 20,000
(3 month acceptance given to x for the
amount 20,000)
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Bills payable a/c dr. 20,000
To bank a/c cr. 19,700
To Discount a/c cr. 300
(being retirement of acceptance
before maturity , interest received
@ 6%)
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Bills payable a/c dr. 20,000
To Cash a/c cr. 20,000
( bill met on maturity)
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