Suresh draws a bill for Rs. 15,000 on Anup on 15th April, 2020 for 3 months,...

 

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Suresh draws a bill for Rs. 15,000 on Anup on 15th April, 2020 for 3 months, which Anup returns to Suresh after accepting the same. Suresh gets it discovered with the bank for rs.14,700 on 18th April, 2020 and remits one-third amount to Anup. On the due date Suresh fails to remit the amount due to Anup, but he accepts a bill of Rs.17,500 for 3 months, which Anup discounts for 17, 100 and remits Rs.2, 825 to Suresh. Before the maturity of the renewed bill Suresh becomes insolvent and only 50% was realized from his estate on 31st October, 2020. Pass necessary Journal entries for the above transactions in the books of Suresh. Suresh draws a bill for Rs. 15,000 on Anup on 15th April, 2020 for 3 months, which Anup returns to Suresh after accepting the same. Suresh gets it discovered with the bank for rs.14,700 on 18th April, 2020 and remits one-third amount to Anup. On the due date Suresh fails to remit the amount due to Anup, but he accepts a bill of Rs.17,500 for 3 months, which Anup discounts for 17, 100 and remits Rs.2, 825 to Suresh. Before the maturity of the renewed bill Suresh becomes insolvent and only 50% was realized from his estate on 31st October, 2020. Pass necessary Journal entries for the above transactions in the books of Suresh.

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