wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

On 1st Jan, 2017 X sold goods to Y for Rs 10,000 on credit basis. On the same date X drew a bill for Rs 10,000 on Y at two months. Y accepted the bill and returned it to X. On the due date Y could not honor acceptance. What is the journal for recording the dishonor of a bill?


A
Y A/c Dr 10,000
To Bills recievable A/c 10,000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Bills Receivable A/c Dr. 10,000
To Y A/c 10,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Bills Payable A/c Dr 10,000
To X A/c Rs. 10,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
X A/c Dr. 10,000
To Bills payable A/c 10,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A Y A/c Dr 10,000
To Bills recievable A/c 10,000

Option A is the correct one.
The Journal entry for recording the dishonor of a bill will be:

Y (Debtors) a/c Dr 10000
To Bills receivable A/c 10000
( Being bill dishonored)

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Calculating Salary/Commission
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon