A person who solds goods to his customer on credit....
"Then that customer endorsed bills of Rs.30,000 to him which he accepted in favour of his suppliers"
👆👆👆👆👆 (confusing quotations)
Any body help me to get over this.... And also what is the entry for it?
Hello,
The above statement can be understood as , we sold goods to Mr. X for 50000.
i.e Debtors(Mr.X) 50000
To sales 50000
Now the Mr.X has endorsed Bills Receivable of 30000 to us which he has accepted from his customers( the word suppliers is wrong, i guess), so the entry will be:
Bills Receivable 30000
To debtors(MR. X) 30000
When the customers will pay Mr. X, then it will be endorsed to us. and entry will be
Bank 30000
To Bills REceivable 30000
CAclubindia
