1.

A sells goods for ₹ 30,000 to B on 1st January, 2017 and on the same day draws a bill on B at three months for the amount. B accepts it and returns it to A, who discounts it on 4th February, 2017 with his bank at 18% per annum. The acceptance is dishonoured on the due date, the noting charges paid by the bank being ₹ 200.On 4th April, 2017, B accepts a new bill at two months for the amount then due to A together with interest at 12 per cent per annum.Make Journal entries to record these transactions in the books of A and B.

Answer» A sells goods for ₹ 30,000 to B on 1st January, 2017 and on the same day draws a bill on B at three months for the amount. B accepts it and returns it to A, who discounts it on 4th February, 2017 with his bank at 18% per annum. The acceptance is dishonoured on the due date, the noting charges paid by the bank being ₹ 200.

On 4th April, 2017, B accepts a new bill at two months for the amount then due to A together with interest at 12 per cent per annum.

Make Journal entries to record these transactions in the books of A and B.


Discussion

No Comment Found

Related InterviewSolutions