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Question
Answer the following question in one sentence only.
What is bill of exchange?
Solution
A bill of exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
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Sukhdev sold goods to Namdev worth ₹ 30000 on 1st March 2013. Namdev accepted a bill for three months , drawn by Sukhdev on 1st March 2013.
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Namdev accepted the new bill. On due date the new bill was honoured.
Give journal entries in the books of Sukhdev.
