Shyam sold goods to Ram for ~ 20,000 on 1.1.2015. On the same date Shyam drew upon Ram a bill for the amount of bill at 2 months and Ram accepted the same. On 4th January 2015, Shyam discounted the bill at his bank @ 12% p.a. On the due date Ram told Shyam that […]

A bought goods from B on 15th January, 2015 for ~ 25,000 for which he accepted a bill for 3 months drawn on him for ~ 20,000 and paid ~ 5,000 by cheque. On 21.1.2015 B discounted the bill @ 15%. p.a. A, being unable to meet the bill at maturity, requested B to accept

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

On 1.1.2015, A sold goods to the value of ~ 2,000 to B on credit and drew a bill for 3 months for the same amount which B accepted on the same date. The bill was discounted for ~ 1,970. On the due date, B notified his inability to meet the bill and requested A

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

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

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 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 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