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On 1st July, 2017, A drew a bill for ₹ 5,000 on B payable after 3 months. A discounted it with the Bank for ₹ 4,850. On maturity B failed to pay the amount of his acceptance and the bank had to pay ₹ 50 as noting charges. Draw up the necessary Journal entries in the books of A and B. |
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Answer» Due date would be OCTOBER 4, 2017In the books of A:Date:2017 JULY 1Particulars:(1)Bills receivable A/C dr. 5000 To B. 5000(2)Bank A/C dr. 4850 Discounting charges A/C dr. 150 To bills receivable A/C. 5000(3)Date: 2017 October 4Particulars:B. dr. 5050 To bank A/C. 5050In the books of B:Date:2017 July 1Particulars:(1)A. dr. 5000 To bills payable. 5000(2)No entry in the books of B when A DISCOUNTS the bill from bank(3)Date:2017 October 4Particulars:Bills payable A/C. dr. 5000Noting charges A/C. dr. 50 To A. 5050 |
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