04.
Ravi sold goods to Ram on 19 July 20 for Rs. 25000 and received 5000 immediately. For
balance amount Ram accepted a bill for 3 months. Ravi sent the bill for collection to
kamal on 25 sep. On maturity date, Ram paid his liability.
Prepare the Journal entries in the books of Ram and Ravi.
(6)
Answers
Explanation:
In books of Ravi
19 july
Ram. dr. 25000
To sales account. 25000
Cash account. dr 5000
Bills receivable. dr 20000
To Ram. 25000
25 Sept.
Bill sent for collection. dr 20000
To Bills receivable. 20000
22 Oct.
Bank account. dr 20000
To bill sent for collection. 20000
In books of Ram
29 july
Purchase account dr. 25000
To Ravi. 25000
Ravi. dr. 25000
To cash account. 5000
To bills payable. 20000
22 0ct.
Bills payable. dr 20000
To bank account. 20000
Answer:
Required Journal Entries :
When the bill is paid on the due date :
In the books of Ravi :
• Ram ac Dr. 20,000
To sales ac. 20,000
( Ravi sold goods to Ram )
• Bill's Receivable ac Dr. 20,000
To Ram ac 20,000
( Drew bill on Ram )
• Cash ac Dr. 20,000
To Bill's P ac. 20,000
( Collection of Bill )
In the Books Of Ram :
• Purchases ac Dr. 20,000
To Ravi ac 20,000
( Purchased Goods from Ravi )
• Ravi ac Dr. 20,000
To Bill's payable ac. 20,000
( Accepted The Bill )
• Bill's P ac Dr. 20,000
To Cash ac. 20,000
( Bill Paid )
- Due Date of Bill : 25 Sept. 2020
Total Amt Due = 25,00
Amt rcvd Immediarely = 5000
= 25,000 - 5000
= 20,000
Note :
- Write date on each transactions in journal
- Write amount correctly in both debit and credit sides.