InterviewSolution
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InterviewSolution
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On 1st May, A drew and B accepted a bill at three months for 2,000. On 4th May, A discounted the bill 6 percent per annum and remitted half the proceeds to B. On 1st June, B drew and A accepted a bill at three months for 500. On 4th June, B discounted the bill 6% per annum and remitted half the proceeds to A. A and B agreed to share the discount equally. At maturity, A met his acceptance but B failed to meet his, and A had to pay for it. A then drew and B accepted a new bill at three months for the amount of the original bill plus 30 for interest. On 1st November, B became insolvent and paid to his creditors 50 paise in the rupee. Write up the entries in A's Journal. |
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Answer» On 1st May, A drew and B accepted a bill at three months for 2,000. On 4th May, A discounted the bill 6 percent per annum and remitted half the proceeds to B. On 1st June, B drew and A accepted a bill at three months for 500. On 4th June, B discounted the bill 6% per annum and remitted half the proceeds to A. A and B agreed to share the discount equally. At maturity, A met his acceptance but B failed to meet his, and A had to pay for it. A then drew and B accepted a new bill at three months for the amount of the original bill plus 30 for interest. On 1st November, B became insolvent and paid to his creditors 50 paise in the rupee. Write up the entries in A's Journal. |
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