NOTES


CA-Foundation > Principles and Practice of Accounting > Theoretical Framework -Accounting Standards and Policies & Indian Accounting Standards (Old & New)

On 1st January, 2016, A sells goods for Rs.10,000 to B and draws a bill at three months for the amount. B accepts it and returns it to A. On 1st March, 2016, B retires his acceptance under rebate of 12% per annum. Record these transactions in the journals of B.



Ans.

Journal Entries in the books of B

Date

Particulars

Debit

Credit

2016

 

Rs.

Rs.

Jan. 1

Purchases account                                          Dr.

       To A’s account

(Being the goods purchased from A on credit)

10,000

 

10,000

 

A’s account                                                      Dr.

   To Bills payable account

(Being the acceptance of bill given to A)

10,000

 

10,000

1-Mar

Bills payable account                                       Dr.

      To Bank account

       To Rebate on bills account

(Being the bill discharged under rebate @ 12% p.a.)

10,000

 

9,900

100

 

Working Note :

Calculation of rebate:

10,000 x 12/100 x 1/12 = Rs.100





Notes of Theoretical Framework -Accounting Standards and Policies & Indian Accounting Standards (Old & New)



  1. On 1st January, 2016, A sells goods for Rs.10,000 to B and draws a bill at three months for the amount. B accepts it and returns it to A. On 1st March, 2016, B retires his acceptance under rebate of 12% per annum. Record these transactions in the journals of B.
    see in detail


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