Numerical Questions · Q11
Q.On Jan 01, 2016 Neha sold goods for ₹20,000 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 @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.
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Start your 14-day free trial to unlock the full solution →Bill ₹20,000 for 2 months, dated 1 Jan 2016. Normal maturity = 1 Mar + 3 days grace = 4 Mar 2016. Muskan retires it one month early on 4 Feb 2016. Rebate = ₹20,000 × 12% × 1/12 = ₹200 (interest for the one unexpired month), so cash paid/received = ₹20,000 − ₹200 = ₹19,800. Neha debits Rebate on Bills (an expense/allowance); Muskan credits Rebate on Bills (a gain).
Books of Neha
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2016 Jan 01 | Muskan's A/c Dr. | 20,000 | ||
| To Sales A/c | 20,000 | |||
| (Sold goods to Muskan on credit) | ||||
| 2016 Jan 01 | Bills Receivable A/c Dr. | 20,000 | ||
| To Muskan's A/c | 20,000 | |||
| (Received Muskan's acceptance payable after two months) | ||||
| 2016 Feb 04 | Bank A/c Dr. | 19,800 | ||
| Rebate on Bills A/c Dr. | 200 | |||
| To Bills Receivable A/c | 20,000 | |||
| (Bill retired one month before maturity; rebate @12% = ₹200) |
Books of Muskan
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2016 Jan 01 | Purchases A/c Dr. | 20,000 | ||
| To Neha's A/c | 20,000 | |||
| (Purchased goods from Neha on credit) | ||||
| 2016 Jan 01 | Neha's A/c Dr. | 20,000 |
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