Ravinderan drew upon Narayanan a bill of exchange for the same amount payable after days. On the due date Narayanan dishonoured his acceptance. Pass the necessary journal entries in the books of Ravinderan and Narayanan in following cases: When the bill was retained by Ravinderan with him till the date of its maturity. When the bill was discounted by Ravinderan immediately with his bank @ % p.a.
When the bill was endorsed to his creditor Ganeshan. When the bill was sent by Ravinderan to his bank for collection a few days before it maturity. . Ravi sold goods for Rs.
, to Sudershan on Feb , . He drew four bills of exchange upon Sudershan. The first bill was for Rs. , payable after one month.
The second bill was for Rs. , payable after days; the third bill was for Rs. , payable after three months and fourth bill was for the balance amount payable after days. Sudershan accepted all the bills and returned the same to Ravi.
Ravi discounted the first bill with his bank at % p.a. He endorsed the second bill to his creditor Mustaq for the full settlement of a debt of Rs. , . The third bill was kept by Ravi with him till the date of maturity.
Five days before the maturity of the fourth bill, Ravi sent the bill to his bank for collection. All the four bills were dishounoured by Sudarshan on maturity. Sudershan settled Ravi’s claim in cash three days after the dishonour of each bill along with interest @ % p.a. for the terms of the bills.
You are requested to record the necessary journal entries in the books to Ravi, Sudershan, Mustaq and bank for the above transaction. Also prepare Sudershan’s account and Mustaq’s account in the books of Ravi. . On Jan , Neha sold goods for Rs.
, to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ % p.a. Neha agreed to