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On 1st January, 2016, S purchased goods from P for Rs. 16,000 and immediately drew a promissory note in favour of P payable after 3 months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act, 1881. Since, P was unaware about the provision of the law regarding the date of maturity of the bill, she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to P immediately. Record the necessary journal entries in the books of P and S. |
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Answer» On 1st January, 2016, S purchased goods from P for Rs. 16,000 and immediately drew a promissory note in favour of P payable after 3 months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act, 1881. Since, P was unaware about the provision of the law regarding the date of maturity of the bill, she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to P immediately. Record the necessary journal entries in the books of P and S. |
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