David, for the mutual accommodation of himself and Joseph, draws upon the latter a bill of exchange at3 months date for $. 10,000. The bill is discounted by Ram at 12 per cent and half the proceeds areremitted to Joseph.David, at the same time, draws a bill of exchange at 3 months on joseph for $. 5,000. After securingDavid acceptance the bill is discounted at 12 per cent by Joseph who remits half the proceeds to David.joseph becomes bankrupt before the due date of his acceptance and David receives first and finaldividend of 40 per cent in the rupee in full satisfaction.Write up the Journal and Ledger entries in the books of both the parties.

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joseph becomes bankrupt before the due date of his acceptance and David rece dividend of 40 per cent in the rupee in full satisfaction. Write up the lournal and Ledger entries in the books of both the parties

joseph becomes bankrupt before the due date of his acceptance and David rece dividend of 40 per cent in the rupee in full satisfaction. Write up the lournal and Ledger entries in the books of both the parties

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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