What do you mean by ,"Paid Rs. 5,000 by cheque for bill drawn". How do post same transactions in cash book?
Dear Student,
Rs 5,000 paid by cheque for a bill drawn refers to a situation wherein the person/ entity has paid the mentioned amount of sum to someone against the bill drawn on him (or he/she has paid him in advance along with drawing a bill of exchange that he/she would be required to pay within a short period of time). Thus, in both the cases, either payment has been made against the bills accepted (B/P) or bills receivable (B/R).
In cash book the transaction would be posted as follows:
Cash book/Bank book would be credited.
*Here we have assumed that payment has been made against some bills that we have drawn and would be received later.
Regards,
Rs 5,000 paid by cheque for a bill drawn refers to a situation wherein the person/ entity has paid the mentioned amount of sum to someone against the bill drawn on him (or he/she has paid him in advance along with drawing a bill of exchange that he/she would be required to pay within a short period of time). Thus, in both the cases, either payment has been made against the bills accepted (B/P) or bills receivable (B/R).
In cash book the transaction would be posted as follows:
Cash book/Bank book would be credited.
| Cash/Bank Book | ||||||||
| Dr. | Cr. | |||||||
| Date | Particulars | L.F. | Amount (Rs) |
Date | Particulars | L.F. | Amount (Rs) |
|
| By Bills Receivables A/c* | 5,000 | |||||||
*Here we have assumed that payment has been made against some bills that we have drawn and would be received later.
Regards,