X draws a bill for Rs 3,000 and Y accepts the same for the mutual accommodation of both of them to the extent of X 2/3 and Y 1/3. X discounts the same for Rs 2,820 and remits 1/3 of the proceeds to Y. Before the due date, Y draws another bill for Rs 4,200 on X in order to provide funds to meet the first bill. The second bill is discounted for Rs 4,080 with the help of which the first bill is met and Rs 720 are remitted to X. Before the due date of the second bill, X becomes bankrupt and Y receives a dividend of 50 paise in the rupee in full satisfaction. Pass the Journal entries in the books of X and Y.
X draws a bill for Rs 3,000 and Y accepts the same for the mutual accommodation of both of them to the extent of X 2/3 and Y 1/3. X discounts the same for Rs 2,820 and remits 1/3 of the proceeds to Y. Before the due date, Y draws another bill for Rs 4,200 on X in order to provide funds to meet the first bill. The second bill is discounted for Rs 4,080 with the help of which the first bill is met and Rs 720 are remitted to X. Before the due date of the second bill, X becomes bankrupt and Y receives a dividend of 50 paise in the rupee in full satisfaction. Pass the Journal entries in the books of X and Y.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:X draws a bill for Rs 3,000 and Y accepts the same for the mutual accommodation of both of them to the extent of
X 2/3 and Y 1/3. X discounts the same for Rs 2,820 and remits 1/3 of the proceeds to Y. Before the due date, Y
draws another bill for Rs 4,200 on X in order to provide funds to meet the first bill. The second bill is discounted
for Rs 4,080 with the help of which the first bill is met and Rs 720 are remitted to X. Before the due date of the
second bill, X becomes bankrupt and Y receives a dividend of 50 paise in the rupee in full satisfaction. Pass the
Journal entries in the books of X and Y.
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