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 .
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) | |||||