Sundry' Creditors Rs. 2,50,000 and Bills Payable Rs. 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. What would be the further treatment if nothing else is mentioned?

Sundry’ Creditors Rs. 2,50,000 and Bills Payable Rs. 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. What would be the further treatment if nothing else is mentioned?

SOLUTION

Realisation A/c Dr. 35,000
To Bank A/c 35,000
(Bills Payable paid off)