Question

X sold goods to Y Rs, 50,000 on 1st June 2019 for a period of 3 months. Y accepted

the bill and returned to X. On July 30 X discounted the bill with his bank for Rs,

49250. Before the bill was due for payment, Y informed X that he was not able to

pay the full amount and requested to accept Rs.20, 000 immediately and drew upon

him another bill for the balance amount for two months along with interest @ 18%.

X agreed. The second bill was duly met. Give journal entries in the books of X and Y.​

Answer 1

Answer:

X sold goods to Y Rs, 50,000 on 1st June 2019 for a period of 3 months. Y accepted

the bill and returned to X. On July 30 X discounted the bill with his bank for Rs,

49250. Before the bill was due for payment, Y informed X that he was not able to

pay the full amount and requested to accept Rs.20, 000 immediately and drew upon

him another bill for the balance amount for two months along with interest @ 18%.

X agreed. The second bill was duly met. Give journal entries in the books of X and Y.