For their mutual accommodation a draws A bill for RS. 5,000 on B for three months. B accepts it and return it to A. the proceeds of the bill are to be shared by A and B in the ratio of 3/5 and 2/5 respectively. 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?
For their mutual accommodation a draws A bill for RS. 5,000 on B for three months. B accepts it and return it to A. the proceeds of the bill are to be shared by A and B in the ratio of 3/5 and 2/5 respectively. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
For their mutual accommodation a draws A bill for RS. 5,000 on B for three months. B accepts it and return it to A. the proceeds of the bill are to be shared by A and B in the ratio of 3/5 and 2/5 respectively. 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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education