Answer question 26

Answer question 26 26. On 1st January, 2013, X received from Y three Bills of Exchange for 6,000; 8,000; and 10,000 for 6 months, 4 months and 3 months respectively. On 3rd January the first bill was discounted by X with his bankers at a discount of 5% p.a. On 1st February the 3rd bill was endorsed in favour of a creditor Z. The second bill was retained till the due date. On due dates all the three bills were dishonoured. Show the necessary Journal entries in the books of X and Y. 27. On 1st January, 2017, Mr. X sold goods to Mr. Y for 4,500 on credit and drew 3 bills on him: first bill for 1,000 for 1 month, second bill for 1,500 for 2 months and third bill for 2,000 for 3 months Mr. Y accepted and returned all the bills to Mr. X. The first bill was retained by Mr. X till the date of maturity. Second bill was endorsed to his creditor Mr. Z on 3rd January, 2017 and third bill was sent to bank for collection on 4th January, 2017. On maturity all the bills were dishonoured and noting chaiges amounted to 10, 15 and 20 respectively. Give the Journal entries in the books of X, Y and Z. 28. Ram owes 2,000 to Mohan on 1st January, 2013, On this date, he accepted a draft for the amount for 3 months. Mohan got the bill discounted at his bank @ 6% p.a. On the due date, the bill dißhpnoured, noting charges 20. Ram agreed to pay 520 immediately and accept another bill for the remaining amount for 3 months together with interest at 9% p.a. This bill was met on the due date. Give the Journal entries in the books of both the parties.