Account 3 Marks Question

Define Bill of Exchange. What are the features of a Bill of Exchange?

Define a Promissory Note. What are the features of a Promissory Note?

Define a Promissory Note.

Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

Who are the parties to a Promissory Note?

Find the due date of a Bill of Exchange dated 9th December, 2018, payable after 45 days.

A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.