C.p.t doubt in accounts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 October 2013
dishonour of a discounted bill is recorded in csh book .why is it not recorded in bills receivable book?
23 October 2013
Journal Entry
1. Acceptance of bill
Bill receivable a/c Dr.
To Sundry Debtor's A/c
2. Bill Discounted
Bank A/c Dr.
Discount A/c Dr.
To Bill receivable A/c
3. bill dishonored
Sundry Debtors A/c Dr.
To Bank Account
As you can see that bill receivable have been created and on discounted of bill the account have been closed. but at the time of bill dishonored the person have a liability to pay to bank and have an right to receive from sundry creditor
in case of cash, at the time of dishonored of bill, cash have to pay to person who have discounted the bill.
hope so you have understand.
for any further query, feel free to ask.
1. Acceptance of bill
Bill receivable a/c Dr.
To Sundry Debtor's A/c
2. Bill Discounted
Bank A/c Dr.
Discount A/c Dr.
To Bill receivable A/c
3. bill dishonored
Sundry Debtors A/c Dr.
To Bank Account
As you can see that bill receivable have been created and on discounted of bill the account have been closed. but at the time of bill dishonored the person have a liability to pay to bank and have an right to receive from sundry creditor
in case of cash, at the time of dishonored of bill, cash have to pay to person who have discounted the bill.
hope so you have understand.
for any further query, feel free to ask.
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