1.

Asha sold goods worth ₹ 19,000 to Nisha on March 2, 2016. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank 10% p.a. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.On 5th June, Nisha paid ₹ 3,030 (including noting charges) in cash and accepted a new bill at one month for the amount due to Asha together with interest 15% p.a.Record the necessary journal entries in the books of Asha and Nisha.

Answer» Asha sold goods worth ₹ 19,000 to Nisha on March 2, 2016. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank 10% p.a. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.

On 5th June, Nisha paid ₹ 3,030 (including noting charges) in cash and accepted a new bill at one month for the amount due to Asha together with interest 15% p.a.

Record the necessary journal entries in the books of Asha and Nisha.


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