On 1st January, 2016, Anu sells goods for Rs. 20,000 to Balu and draws a bill at three months for th….

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On 1^st January, 2016, Anu sells goods for Rs. 20,000 to Balu and draws a bill at three months for the amount. Balu accepts it and returns it to Anu. On 1^st March, 2016, Balu retires his acceptance under rebate of 12% per annum. Find out the correct journal entry for the discharge of the bill in the journals of Balu.

Options :-

1. Bank a/c……….Dr 19,800
   Rebate a/c …….Dr 200
   To bills payable a/c 20,000
2. Rebate a/c ……….Dr 200
   Bills payable a/c ………Dr 19,800
   To bank a/c          20,000
3. Bills payable a/c …….Dr 20,000
   To bank a/c                   19,800
   To rebate a/c                     200
4. Bank a/c……..Dr           19,800
   To bills payable a/c               19,800

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