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On 1.1.2015, A sells goods to B for ~ 10,000 and draws a bill on him for the same amount for 3 months. B accepts the bill and returns it to A. One month before the due date, B requests A to cancel the bill. Instead, he wants to pay ~ 3,000 immediately as part […]

In the books of A, there was a balance of ~ 13,000 due by B on 31st March, 2015 which was written-off as bad debt in closing of the books on that date. On 12th July, 2015 B paid cash ~ 12,000 in full and final settlement of his dues. Further transactions took place between

D owes ~ 6,000 to S. The debt is discharged by D on 1.6.2014 by accepting two bills of exchange drawn on him by S —- one for ~ 4,000 at 2 months and the other for ~ 2,000 at 3 months. The first bill is endorsed in favour of R, a creditor, in full

On 1.1.2015, Ram sold goods to Rahim valuing ~ 30,000. On 4.1.2015, Ram received from Rahim ~ 10,000 and drew a bill payable 3 months after date for the balance. On the same date, Ram endorses the accepted bill to Shyam for full settlement of a debt of ~ 21,000. On the due date, the

On January 1, 2015 Saju accepted a bill, drawn on him by Rinku for ~ 5,000 payable 4 months after sight, against his dues. Having surplus funds, Saju paid off the bill on 4th February and was allowed a rebate of 6% p.a. Show Journal entries in the books of Saju and Rinku to record

On 1st September, 2014 Honest Dealers purchased goods valued at ~ 72,000 from Best Manufacturers. They sold these goods to Nice Consumers for ~ 1,00,000 who agreed to accept two bills of exchange of equal value payable on 1st March, 2015 for the invoice amount plus interest at 10% per annum. Honest Dealers could only

A approached his friend B for a loan of ~ 5,000 and the latter, being unable to find the money, agreed to accept a bill drawn on him at 3 months for accommodation. In due course, the bill was drawn, accepted and discounted with the banker. The bank rate of discounting the customer’s bill was

For the mutual accommodation of Hiru and Biru, Hiru accepts a bill drawn on him by Biru for three months for ~ 3,000 on 1st January, 2015. Biru discounts the bill immediately for ~ 2,700 and remits 1/3rd of the proceeds to Hiru. Before the bill becomes due, Biru remits the balance due to Hiru

On 1st January, 2015, A for his own accommodation, draws a bill on B for ~ 5,000 at 3 months. B accepts the bill and returns it to A on the same date. A discounts the bill with the banker @ 12% p.a. on 4.1.2015. On the due date, A fails to provide B with

On 1st July, 2014, G drew a bill for ~ 80,000 for 3 months on H for mutual accommodation. He accepted the bill of exchange. G had purchased goods worth ~ 81,000 from J on the same date. G endorsed H’s acceptance to J in full settlement. On 1st September, 2014, J purchased goods worth