1.

On 1st January, 2106, P sold goods to Q for Rs. 1,00,000. On the same date P draws a bill on Q for Rs. 1,00,000 due after three months. Q accepted the bill and returned it to P. P retained the bill till the due date and Q meets the bill on due date. Pass journal entries and prepare Q's account in the books of P.

Answer»

On 1st January, 2106, P sold goods to Q for Rs. 1,00,000. On the same date P draws a bill on Q for Rs. 1,00,000 due after three months. Q accepted the bill and returned it to P. P retained the bill till the due date and Q meets the bill on due date. Pass journal entries and prepare Q's account in the books of P.



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