Livestock Economics, Marketing and Business Management

BILLS OF EXCHANGE

Problem 2

• Write the following particulars pertaining to the month of February 2005 in  the appropriate subsidiary book.  
  • February 1 Draw a three-month bill on Babu for Rs.7500
  • 4 Accepted Krishna’s bill for Rs.5000 payable at three months
  • 8 Received from Shankar his acceptance for Rs.2500
  • 11 Sent Raja acceptance for 2250
  • 17 Babu endorsed in Mohan’s favors an acceptance for Rs.4500
  • 20 Babu acceptance Mohan draft for Rs.7750
  • 22 Krishna drew on Mohan at three months
  • 27 Drew a bill at two months on Shankar for Rs.2000
  • 28 Shankar accepted Mohan’s draft for Rs.6250

Solution

Bills Receivable Book

Date	Party from Whom Received	Acceptor	Period in months	Amount	Remarks
2005 Feb			3
1	Babu	Babu		7500
8	Shankar	Shankar		2500
17	Babu			4500
20	Babu			7750
27	Shanka	Shankar	2	2000
28	Shankar	Shankar		6250
				30500

Bills Payable Book

Date	Drawer’s name	Period in months	Amount	Remarks
2005 Feb
4	Krishna	3	5000
11	Raja		2250
22	Krishna	3	5750
			13000