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X sells goods for ₹ 40,000 to Y on 1st January, 2019 and on the same day draws a bill on Y at three months for the amount. Y accepts it and returns it to X, who discounted it on 4th January, 2019 with his bank at 6% p.a. The acceptance is dishonoured on the due date and the noting charges were paid by bank being ₹ 200.On 4th April, 2019, Y accepts a new bill at three months for the amount then due to X together with interest at 12% p.a.Make Journal entries to record these transactions in the books of X. |
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Answer» X sells goods for ₹ 40,000 to Y on 1st January, 2019 and on the same day draws a bill on Y at three months for the amount. Y accepts it and returns it to X, who discounted it on 4th January, 2019 with his bank at 6% p.a. The acceptance is dishonoured on the due date and the noting charges were paid by bank being ₹ 200. On 4th April, 2019, Y accepts a new bill at three months for the amount then due to X together with interest at 12% p.a. Make Journal entries to record these transactions in the books of X. |
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