On 1 July 2021, A sells goods for Rs. 4,00,000 to B and draws a bill at four months for the amount. B accepts it and returns it to A. On 4 September 2021, B retires his acceptance under rebate of 12% per annum. The entry to be passed in the books of B would be:
1
Bills Receivable A/c Dr Rs. 4,00,000
To Bank A/c Rs. 3,92,000
To Rebate Income A/c Rs. 8,000
2
Bank A/c Dr Rs. 3,96,000
Rebate on Bills A/c Dr Rs. 4,000
To Bills Receivable A/c Rs. 4,00,000
3
Bank A/c Dr Rs. 3,92,000
Rebate on Bills A/c Dr Rs. 8,000
To Bills Receivable A/c Rs. 4,00,000
4
Bills Payable A/c Dr Rs. 4,00,000
To Bank A/c Rs. 3,92,000
To Rebate Income A/c Rs. 8,000