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Amjad sold goods to Sohail worth Rs 20000, taking a bill at 3 months, dated 1st July 2005. On 4th august he discounted the bill @15% p.a with his banker. At maturity the bill was returned dishonored by the bank and Amjad had to pay the bill. Sohail paid Rs 8000 to Amjad and accepted another bill at three months for Rs 12000 and 14% interest. But, before maturity, he became insolvent and only 50 paisa in a rupee was received as first and last dividend from his estate.
Required: Pass journal entries in books of Amjad and Sohail
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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