A sold car to b for Ten Thousand riyals to be paid by emi of One Thousand Riyals each B sold the same to C for same amount and emi. At the time of emi C pays B the amount and B pays A.
Suppose you are a accountant for B and your employer wants you to do the following
1) A’s opening balance is Eight riyals
2) In C’s ledger it should show as payment to A
3) In A’s ledger it should reduce the balance payable.
4) In B’s bank book it should show as receipt from C and payment to A
5) A’s closing balance should be Seven Thousand riyals
State the necessary journal entries.