23.Gani sold good to Mani for Rs.3000 on credit on 1.4.1999. For this purpose, Gani
drew a bill on mani for Rs.3000 for 3 months mani accepted the same and returned it
to Gani. On maturity the bill was dishourned by mani. Show the entries in the books
of both the parties under each of the following circumstances.
1) IF Gani retained the bill till maturity:
ii) If Gani discounted the bill by the bank at 18% pa.
iii) II Gani endorsed the bill to his creditor Anul.
iv) If Gani sent the bill to the bank for collection
Answers
Answer: Below is your required solution, kindly mark it brainliest if you like.
Journal entries common for all sub - parts.
Mani's A/c Dr. 3000
To Sales A/C 3000
(being goods sold on credit)
Bills Receivable A/c Dr. 3000
To Mani's A/c 3000
(being bill drew and accepted)
Case - 1 Mani's A/c Dr. 3000
To Bills Receivable A/c 3000
(being bill dishonoured)
Case - 2 Bank A/C Dr.2460
Discount A/C Dr. 540
To Bills Receivable A/c 3000
(being bill discounted)
Mani's A/c Dr. 3000
To Bank A/c 3000
(being bill dishonoured)
Case - 3 Anul's A/C Dr. 3000
To Bills Receivable A/c 3000
(being bill endorsed)
Mani's A/c Dr. 3000
To Anul's A/c 3000
(being bill dishonoured)
Case - 4 Bill sent for collection A/c Dr. 3000
To Bills Receivable A/c 3000
(being bill sent for collection)
Mani's A/c Dr. 3000
To Bill sent for collection A/c 3000
(being bill dishonoured)