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Read the following hypothetical Case Study and answer the given questions:
On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.
Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.
On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.
Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.
Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?
  • a)
    Anand Dr. 4,000
    To Bills Receivables (I) A/c 4,000
    (Being bill endorsed to Anand for the full settlement of his account)
  • b)
    Anand Dr. 4,120
    To Discount Received A/c 120
    To Bills Receivable (I) A/c 4,000
    (Being bill endorsed to Anand for the full settlement of his account)
  • c)
    Anand Dr. 4,120
    To Discount Received A/c 120
    To Parag 4,000
    (Being bill endorsed to Anand for the full settlement of his account)
  • d)
    No Entry will be done in the books of Sushil.
Correct answer is option 'B'. Can you explain this answer?
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Read the following hypothetical Case Study and answer the given quest...
Journal entry for the bill endorsed by Sushil to Anand in the books of Sushil is
Anand Dr. 4,120
To Discount Received A/c 120
To Bills Receivable (I) A/c 4,000
(Being bill endorsed to Anand for the full settlement of his account)
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Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer?
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Solutions for Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the following hypothetical Case Study and answer the given questions: On 1st January 2018, Sushil drew on Parag, who is a debtor for ₹15,000 three bills of exchange: 1st: for ₹4,000 at one month, 2nd: for ₹5,000 at two months and 3rd: for ₹6,000 at three months.Parag accepted all three bills. On 10th January 2018, Sushil endorsed the first bill to his creditor Anand in full settlement of his account of ₹4,120. This bill was duly met on maturity.On 20th January 2018, the second bill was discounted from the bank for ₹4,850. This bill was dishonoured on the due date and the bank paid ₹40 as nothing. On Parag’s request Sushil drew a fourth bill on Parag for 2 months for the amount due plus ₹200 as interest.Third bill was paid under a rebate of 15% p.a. one month before maturity. The fourth bill was sent to the bank for collection on 4th May 2018 and was duly met on maturity.Q. What will be the journal entry for the bill endorsed by Sushil to Anand in the books of Sushil?a)Anand Dr. 4,000To Bills Receivables (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)b)Anand Dr. 4,120To Discount Received A/c 120To Bills Receivable (I) A/c 4,000(Being bill endorsed to Anand for the full settlement of his account)c)Anand Dr. 4,120To Discount Received A/c 120To Parag 4,000(Being bill endorsed to Anand for the full settlement of his account)d)No Entry will be done in the books of Sushil.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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