Question

1. On 15 January, 2015 Rao sold goods Rs. 10,000 to Reddy. Half of the payment was made
immediately and for the remaining half, Rao drew a bill of exchange upon Reddy payable after
30 days. Reddy accepted the bill and returned it to Rao, on the due date, Rao presented the by to
Reddy and received the payment.
Journalise the above transactions in the books of Rao
th
11​

Answer 1

Answer:

Reddy's Transcation Details

jan 15 2015 Rs.5,000 credit  net:X+5000

feb 15 2015  Rs.5,000 credit net: X+10000

Rao's Transcation Details

jan 15 2015 Rs.5,000 debit  net:Y-5000

feb 15 2015  Rs.5,000 debit net: Y-10000

*X is the amount of Reddy's Account which we do not know

*Y is the amount of Rao's Account which we do not know

Explanation:

Answer 2

Answer:

In the books of Rao

Cash a/c Dr. 5000

Bill's receivable a/c Dr. 5000

To sales a/c 10000

(Being sales occured and half the payment received in cash and for the rest a bill is draws)

Cash a/c Dr. 5000

To Bill's Receivable 5000

( Being bill is collected from Reddy)

Explanation: