Bills of Exchange and Promissory notes

For the mutual accommodation of 'X' and 'Y' on 1st April, 2019, 'X' drew a four months' bill on " Y' * for ₹4,000."Y^ prime returned the bill after acceptance of the same date. 'X' discounts the bill from his bankers @ 6% per annum and remit 50% of the proceeds to 'Y'. On due date 'X' is unable to send the amount due and therefore 'Y' draws a bill for 7,000) which is duly accepted by 'X' 'Y' discounts the bill for 6,600 and sends 1,300 to 'X'. Before the bill is due for payment 'X' becomes insolvent. Later 25 paise in a rupee received from his estate. What is the Journal entry if y pay full amount to bank after x becomes insolvent

Rohan Kumar

CA Foundation

★ 5

01-Jun-23 21:28

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