A OWED B RS 400 A ACCEPTED A BILL OF EXCHANGE AT 3 MONTHS DATE OF THIS AMOUNT WHICH - Accountancy - Bills of Exchange

Question

A OWED B RS 400 A ACCEPTED A BILL OF EXCHANGE AT 3 MONTHS DATE
OF THIS AMOUNT WHICH B DISCOUNTED FOR RS 380 GIVE NECESSARY GOURNAL
ENTRIES IN THE BOOKS OF A AND B ,IF THIS BILL IS
1 DISHONOURED ON DUE DATE
2 MET AT MATURITY
3 RETIRED UNDER REBATE AT 6%P A 2 MONTHS BEFORE ITS MATURITY

Manisha Arora · Accepted Answer

Journal Entry
In the Books of B

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Bill Receivable A/c
Dr

400

To A

400

(Bill drawn and accepted)

Bank A/c
Dr

380

Discount A/c
Dr

20

To Bill Receivable

400

(Bill discounted with Bank for Rs
380)

When Bill Dishonored

A
Dr

400

To Bank A/c

400

(Discounted Bill dishonored)

When Bill met on Maturity and When
Retire under Rebate:

No Entry has been Passed

Journal Entry
In the Books of B

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

B
Dr

400

To Bill Payable A/c

400

(Bill accepted)

When Bill
Dishonored:

Bill Payable A/c
Dr

400

To Bank A/c

400

(Bill dishonored)

When Bill Met on
Maturity:

Bill Payable A/c
Dr

400

To Bank A/c

400

(Bill met on maturity)

When Bill Retired Rebate @ 6% Per
Annum before 2 months:

Bill Payable A/c
Dr

400

To Cash/Bank A/c

396

To Rebate A/c

4

(Bill retired on rebate @ 6% per annum
before 2 months)

Journal Entry In the Books of B
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Bill Receivable A/c	Dr.		400
	To A				400
	(Bill drawn and accepted)

	Bank A/c	Dr.		380
	Discount A/c	Dr.		20
	To Bill Receivable				400
	(Bill discounted with Bank for Rs 380)
	When Bill Dishonored

	A	Dr.		400
	To Bank A/c				400
	(Discounted Bill dishonored)

	When Bill met on Maturity and When Retire under Rebate:
	No Entry has been Passed.

A OWED B RS 400 .A ACCEPTED A BILL OF EXCHANGE AT 3 MONTHS DATE OF THIS AMOUNT WHICH B DISCOUNTED FOR RS 380 .GIVE NECESSARY GOURNAL ENTRIES IN THE BOOKS OF A AND B ,IF THIS BILL IS 1.DISHONOURED ON DUE DATE 2.MET AT MATURITY 3.RETIRED UNDER REBATE AT 6%P.A 2 MONTHS BEFORE ITS MATURITY .

A OWED B RS 400 .A ACCEPTED A BILL OF EXCHANGE AT 3 MONTHS DATE OF THIS AMOUNT WHICH B DISCOUNTED FOR RS 380 .GIVE NECESSARY GOURNAL ENTRIES IN THE BOOKS OF A AND B ,IF THIS BILL IS

1.DISHONOURED ON DUE DATE

2.MET AT MATURITY

3.RETIRED UNDER REBATE AT 6%P.A 2 MONTHS BEFORE ITS MATURITY .