Entries | Reliable Papers

Rita for mutual accommodation of herself and Mita, drew upon the latter a bill of exchange at three months for ~ 5,000 on 1.6.2013. Mita accepted the bill and sent it to Rita. Rita discounted the bill on 4.6.2013 at 8% p.a. and remitted half of the proceeds to Mita. Mita for similar purpose drew a bill on 15.6.2013 at two months on Rita for ~ 3,000 and Rita accepted it. On 18.6.2013 Mita discounted the bill at 8% p.a. and handed over half of the proceeds to Rita. At maturity Rita met her acceptance but Mita became insolvent and a dividend of 25 paise in a rupee was received from her estate on 25.10.2013. Pass necessary journal entries in the books of Rita.

Is this the question you were looking for? If so, place your order here to get started!