When a bill is endorsed by the drawer to his creditor, in his books of account, bills receivable account will be:
PRACTICAL PROBLEMS Hitesh sold goods for Rs 4,500 to Ashok on 1.1.2010 and drew upon him a bill of exchange payable 2 months after sight. Ashok accepted the bill and returned the same to Hitesh. On the due date the bill was met by Ashok.
Record the necessary Journal entries in the books of Hitesh and also prepare Ashok account in his books.
1. When the bill was retained by Hitesh till the date of its maturity.
2. When Hitesh immediately discounted the bill @ 15% p.a. with his bank.
3. When three days before its maturity, the bill was sent by Hitesh to his bank for collection.
4. When the bill was endorsed immediately by Hitesh in favour of his creditor Venkat.
Prepare the bills payable account from the following and find out missing figure if any :
Rs
Bills accepted
1,05,000
Discount received
17,000
Purchases returns
9,000
Return inwards
12,000
Cash paid to accounts payable
50,000
Bills receivable endorsed to creditor
45,000
Bills dishonoured
Bad debts
14,000
Balance of accounts payable (closing)
85,000
Credit purchases
2,15,000