Bill of exchange. pls help

CPT 1046 views 1 replies

Please solve it. I have to cross confirm my entries

 

 

Q Anand sold goods of the value of Rs 8,000 to Shankar, taking a bill of 6 months therefore. Anand discounted the bill at 12% p.a. with the bank. On maturity the bill was returned dishonored with Rs 100 as noting charges. Shankar paid Rs 2,000 plus noting charges and accepted another bill at three months at Rs 6,000 plus 12% interest thereof. But before maturity, he had become bankrupt and ultimately paid to his creditors 60 paisa in the rupee.

 

 

 

Pass JOURNAL entries in books of ANAND

 

 

Thanks in advance

Regards

RAHUL

Replies (1)

in the book of anand

journal

particulars

dr

cr

  Shankar a/c dr    8000

     to sale a/c                   8000

 

bill receivable a/c dr.      8000

    to shankar a/c                    8000

 

Bank a/c dr.                     7520

discount a/c dr.               480

    To Bills receivale a/c                 8000

 

Shankar a/c dr.          8100

to Bank (8000+100)            8100

 

cash/Bank a/c dr.           2100

Bill receivale a/c dr.        6180

   To shankar a/c                            8280

 

shankar a/c dr.                180

    to interest a/c                        180

 

shankar a/c dr.                6180

    to Bills receivale a/c                     6180

 

cash/bank a/c dr.             3708

bad debts a/c dr.             2472

    to shankar a/c                         6180

 

   


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