For their mutual accommodation a draws A bill for RS. 5,000 on B for three months. B
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Question:
The bill is discounted by A for Rs 4975 and he remits 2/5 of the proceeds to B. Before the due date B draws another bill for 10 000 on A at three months with the help of these proceeds the first bill is met by B and the remaining proceeds are shared by A and B in the ratio 2/5 and 3/5 respectively the bill is discounted for Rs 9 950 before the due date of the second bill A becomes insolvent and his estate pays only 25% of debts
Pass the entries in the book of both the parties?
Related Book For
Fundamentals of Physics
ISBN: 978-0471758013
8th Extended edition
Authors: Jearl Walker, Halliday Resnick
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