A bill recievable for rs 100 which had been discounted at rs 95 is dishonoured and the bank paid Rs - Accountancy - Bills of Exchange

Question

A bill recievable for rs 100 which had been discounted at rs 95
is dishonoured and the bank paid Rs 2 at noting charges
Give journal entries in the books of drawer , drawee , and the
bank

Nimisha John · Answer

In the books of the drawer:-
BR A/C Dr 100
To Drawee A/C 100
(being bill acepted)
BANK A/C Dr 95
DISCOUNTA/C Dr 5
To BR A/C 100
(being bill disounted with the bank)
DRAWEE A/C Dr 102
To BANK A/C 102
(being bill dishonoured by the drawee which is inclusive of
notingcharges)
For the journal entries of the drawee just use BP instead oF
bill receivable THe entry regarding discounting of the bill with
the bak wont come and the third entry would also contain NOTING
CHARGESA/C Rs 2

A bill recievable for rs.100 which had been discounted at rs.95 is dishonoured and the bank paid Rs.2 at noting charges. Give journal entries in the books of drawer , drawee , and the bank

A bill recievable for rs.100 which had been discounted at rs.95 is dishonoured and the bank paid Rs.2 at noting charges.

Give journal entries in the books of drawer , drawee , and the bank