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On 1st January, 2018, X received from Y three Bills of Exchange for ₹ 6,000; ₹ 8,000; and ₹ 10,000 for 6 months, 4 months and 3 months respectively. On 3rd January the first bill was discounted by X with his bankers at a discount of 5% p.a. On 1st February the 3rd bill was endorsed in favour of a creditor Z. The second bill was retained till the due date. On due dates all the three bills were dishonoured.Show the necessary Journal entries in the books of X and Y.

Answer» On 1st January, 2018, X received from Y three Bills of Exchange for ₹ 6,000; ₹ 8,000; and ₹ 10,000 for 6 months, 4 months and 3 months respectively. On 3rd January the first bill was discounted by X with his bankers at a discount of 5% p.a. On 1st February the 3rd bill was endorsed in favour of a creditor Z. The second bill was retained till the due date. On due dates all the three bills were dishonoured.

Show the necessary Journal entries in the books of X and Y.


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