On 1st January, 2015, Vinod drew and Pramod accepted a bill at three months for ~ 2,000. On 4th January, 2015 Vinod discounted the bill with his bank at 15% p.a. and remitted half the proceeds to Pramod. On 1st February, 2015 Pramod drew and Vinod accepted a bill at four months for ~ 1,500. On 4th February 2015 Pramod discounted the bill at 15% p.a., with his bank and remitted half the proceeds to Vinod. They agreed to share the discount equally.

At maturity Vinod met his acceptance, but Pramod dishonoured his and Vinod had to pay the bill. Vinod drew and Pramod accepted a new bill at three months for the original bill plus interest at 18% p.a. On 1st July, 2015 Pramod became insolvent and only 50 paise in the rupee was received from him. Record the above transactions in Vinods Journal.

Answer rating: 100% (QA)

Vinods Journal Date January 1 2015 Particulars Pramods Acceptance Debit Bills Receivable Credit Pram... View the full answer