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

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

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

Rita for mutual accommodation of herself and Mita, drew upon the latter a bill of exchange at three months for ~ 5,000 on 1.6.2013. Mita accepted the bill and sent it to Rita. Rita discounted the bill on 4.6.2013 at 8% p.a. and remitted half of the proceeds to Mita. Mita for similar purpose drew