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Creditors -150,000 . Anil to whom 40,000 were payable (already included in above creditors) drew a bill of exchange for 3 months which was duly accepted. what will be its effect on revaluation account and balance sheet also journalise it?
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Creditors -150,000 . Anil to whom 40,000 were payable (already include...
Effect on Revaluation Account and Balance Sheet:
- Revaluation Account: The drawing of a bill of exchange by Anil will result in an increase in the value of the creditor's account by 40,000 (the amount payable to Anil). This increase will be recorded as a credit in the revaluation account, reflecting the additional liability of the business.
- Balance Sheet: The increase in the value of the creditor's account will also be reflected in the balance sheet. The total creditors' balance will now be 190,000 (150,000 + 40,000), showing the revised amount payable by the business.

Journal Entry:
The journal entry for drawing a bill of exchange by Anil will be as follows:
- Debit: Anil's Account - 40,000
- Credit: Creditors Account - 40,000
This journal entry records the transfer of the amount payable to Anil from the creditors' account to Anil's account upon the drawing of the bill of exchange.
In conclusion, drawing a bill of exchange by Anil will have a direct impact on the revaluation account, balance sheet, and will require a specific journal entry to account for the transaction.
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Creditors -150,000 . Anil to whom 40,000 were payable (already included in above creditors) drew a bill of exchange for 3 months which was duly accepted. what will be its effect on revaluation account and balance sheet also journalise it?
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Creditors -150,000 . Anil to whom 40,000 were payable (already included in above creditors) drew a bill of exchange for 3 months which was duly accepted. what will be its effect on revaluation account and balance sheet also journalise it? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Creditors -150,000 . Anil to whom 40,000 were payable (already included in above creditors) drew a bill of exchange for 3 months which was duly accepted. what will be its effect on revaluation account and balance sheet also journalise it? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Creditors -150,000 . Anil to whom 40,000 were payable (already included in above creditors) drew a bill of exchange for 3 months which was duly accepted. what will be its effect on revaluation account and balance sheet also journalise it?.
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