1.

A owed B ₹ 400. A accepted a Bill of Exchange at 3 months for this amount which B discounted for ₹ 380.Give the necessary Journal entries in the books of A and B if this bill is:(a) dishonoured on the due date;(b) met at maturity and(c) retired under rebate at 6% p.a. 2 months before its maturity.

Answer» A owed B ₹ 400. A accepted a Bill of Exchange at 3 months for this amount which B discounted for ₹ 380.

Give the necessary Journal entries in the books of A and B if this bill is:

(a) dishonoured on the due date;

(b) met at maturity and

(c) retired under rebate at 6% p.a. 2 months before its maturity.


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