Hi Everyone I am new to accounts and just wanted to get a detail of account entry.
In the books of Rohit
Ram's acceptance to Raju of5000 was endorsed to Rohit. In settlement of bill earlier accepted in favour of Rohit for similar amount.
what entry will Rohit Pass?
i think it is B.R Dr 5000
To B.R 5000.
no...
it will be
B/P a/c dr. 5000
to B/R a/c 5000
Your entry is correct Rahul, as both bills are Bills Receivable for Rohit. So he will cancel the previous bill receivable and make entry for the new bill receivable.
can anyone explain me, because I am not sure about it?
Rahul,
The bill earlier accepted in favour of Rohit is BR for Rohit,
then Raju endorses another bill (it is for amount to be received by Rohit, thus another BR),
So Rohit will cancel the earlier bill by crediting BR A/c and pass entry for the new bill by debiting BR A/c.
your treatment regarding bill is absolutely correct rahul.
CAclubindia
