1.

Haridas discounts a bill for Rs. 10,000 with his banker on 4th February, 2007. The bill was drawn on 1 January for Four months. The discount rate was 12%. p.a. write Journal entries in the book of Haridas.

Answer»

Book of Haridas [Drawer] Journal

DateParticularsLFDebitCredit
1.1.07Debtors A/c   Dr
  To Sales A/c
[sold goods on credit]		10,000
 
10,000
1.1.07Bill Receivable A/c   Dr
  To Debtor A/c
[acceptance Received]		10,000
 
10,000
4.2.07Cash A/c   Dr
Discount A/c
  To Bill Receivable
[Discounted the bill with the banker]		9,700
300


10,000

Note: Calculation of discount 

Discount = 10.000 × 12/100 × 3/12 = 300 It may be noted that discount has been charged for three months and not for 4 months because the bank will have to wait for 3 months to get the payment of bill on the due date.


Discussion

No Comment Found

Related InterviewSolutions