Y a shp a l ow e d m on e y t o Sr i n i v a s a n d h e n c e acce p te d t w o b ill s eac h o f ~
- May 25, 2021/ Finance
Yashpal owed money to Srinivas and hence accepted two bills each of ~ 4,850 of three months’ duration drawn on him by the latter, on July 1, 2015. Srinivas endorsed one of the bills in favour of Hariram on July 7, 2015. On the same date he discounted the other bills with his bank and received net proceeds of ~ 4,675. Yashpal failed to meet both the bills on the due date. On 4th October, 2015, the bank debited the account of Srinivas with the value of the second bill plus their charges of ~ 20. Yashpal is declared insolvent and his estate paid 60 paise in the rupee, on 1st November, 2015. Show the Journal Entries in respect of the above in the books of Yashpal and Srinivas.