Q8) On 10th January 2017, A sells goods to B for ₹12,000.On that date, B accepted a bill drawn upon him by A at two months for 12,000. A retains the bill till the due date and on due date sends the bill to the banker for collection.In due course,A recieves the information from the bank that the bill has been duely met.
Pass Journal Entries in the Books of A and B.
(Kindly explain how do you arrive at the journal entries for each case)
Dear Student,
Answer to your above asked question is already provided on our site D.K.Goel's Solved question. Please go to Question No. 8 on page no. 18.58 from the hereunder provided link.
https://www.meritnation.com/cbse-class-11-commerce/accountancy/accountancy-dk-goel-2019/bills-of-exchange/textbook-solutions/161_17_3531_24774_18.58_142839
Note :-
The narration has been provided for each journal entry, which will let you understand the answer more properly. Although if you come to any doubt you can again get back to us. We are here to help you for the same.
Bills Receivable is debited, as it is asset for A.
Bills payable is credited, as it is liability to be paid for B.
Regards
Answer to your above asked question is already provided on our site D.K.Goel's Solved question. Please go to Question No. 8 on page no. 18.58 from the hereunder provided link.
https://www.meritnation.com/cbse-class-11-commerce/accountancy/accountancy-dk-goel-2019/bills-of-exchange/textbook-solutions/161_17_3531_24774_18.58_142839
Note :-
The narration has been provided for each journal entry, which will let you understand the answer more properly. Although if you come to any doubt you can again get back to us. We are here to help you for the same.
Bills Receivable is debited, as it is asset for A.
Bills payable is credited, as it is liability to be paid for B.
Regards