Y Purchased goods for ? 6000 on 1st June , 2011 from Xand on the same date
Channel: Doubtnut
Date: 2020-03-29

Y Purchased goods for ? 6000 on 1st June , 2011 from Xand on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. on maturity, the bill was dishonoured for non-payment and Z had to pay ? 50 as noting charges. Two days after the dishonour of bill, Y paid ? 2000 to X and requested hinm to draw a second bill for the balance plus ? 90 for the amount of interset, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity. pass Journal entries for the above transactions in the of X.