Illustration 9
P sold goods to Q for ` 10,000 on January 1, 2011 and on the same day drows a bill on Q for the same amount for 3 months. Q accept it and returns it to P, who discounts it on 10th January, 2011 with his bank for ` 9850. The acceptance is dishonoured on the due date and the noting charges were paid by bank being ` 50.
On 4th April, Q paid ` 2,050 (including noting charges) in cash and accepted a new bill at 3 months for the amount due to P together with interst @ 12% per annum. Make Journal Entries in the books of P and Q to record these transactions.
Solution :
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
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