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A bill for Rs. 13,500 is drawn by Vishal on Rakesh and accepted by the latter payable at Union Bank of India. Show what journal entries would be recorded in the books of both the parties under each of the following circumstances, if the bill is met on maturity. (i) The bill is retained till the due date. (ii) The bill is discounted with SBI, for Rs. 13,140. |
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Answer» A bill for Rs. 13,500 is drawn by Vishal on Rakesh and accepted by the latter payable at Union Bank of India. Show what journal entries would be recorded in the books of both the parties under each of the following circumstances, if the bill is met on maturity. (i) The bill is retained till the due date. (ii) The bill is discounted with SBI, for Rs. 13,140. |
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