Read the following: Rahul sold goods worth ₹50,000 to Avika and drew a bill of exchange payable after three months. In place of Avika, the bill is accepted by Kavya. Rahul gives away this bill to his creditor Anshul. Which option correctly describes each party's role in this bill transaction?
Rahul: Drawer; Avika: Drawee; Anshul: Payee; Kavya: Acceptor
In this transaction, Rahul is the drawer who creates the bill, Avika is the drawee, and Kavya accepts the bill, so she becomes the acceptor. Anshul is the payee to whom the bill is transferred. This follows the standard roles in a bill of exchange: Drawer, Drawee, Acceptor, and Payee.
Similar Questions
What will be the journal entry for recording this transaction?
Returned goods to Mr. B of Rs. 500 and paid to Mr. B Rs. 4,000 in full settlement for buying goods worth Rs. 5,000.
1. Mr. B A/c Dr
Rs. 5,000
To Purchases A/c
Rs. 4,000
To Return Outwards A/c
Rs. 5,00
2. Mr. B A/c Dr
Rs. 5,000
To Cash A/c
Rs. 4,000
To Return Outwards A/c
Rs. 500
To Discount Received A/c
Rs. 500
3. Mr. B A/c Dr
Rs. 4,500
To Cash A/c
Rs. 4,000
To Discount Received A/c
Rs. 500
4. Mr. B A/c Dr
Rs. 4,000
To Cash A/c
Rs. 4,000
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Important Questions from Journal Entries
Furniture for a cloth dealer is a/an
What will be the journal entry for recording this transaction?
Returned goods to Mr. B of Rs. 500 and paid to Mr. B Rs. 4,000 in full settlement for buying goods worth Rs. 5,000.
1. Mr. B A/c Dr
Rs. 5,000
To Purchases A/c
Rs. 4,000
To Return Outwards A/c
Rs. 5,00
2. Mr. B A/c Dr
Rs. 5,000
To Cash A/c
Rs. 4,000
To Return Outwards A/c
Rs. 500
To Discount Received A/c
Rs. 500
3. Mr. B A/c Dr
Rs. 4,500
To Cash A/c
Rs. 4,000
To Discount Received A/c
Rs. 500
4. Mr. B A/c Dr
Rs. 4,000
To Cash A/c
Rs. 4,000
In the case of hire purchase, assets account is debited with
Sale of furniture by a furniture dealer for cash is debited to:
According to the Double Entry System, salary paid to a clerk Ramesh is a
