Question

3. A sold to B goods worth 1,000 on credit on 1 Jan., 2016 and drew a bill for three months. B accepted the bill and returned the same to A. Record these transactions in Journal to A and B. [Ans. Total of Journal 2,000].​

Answer 1

Bills of exchange

Explanation:

In the books of A:

1 Jan., 2016

B's A/c  ...Dr - ₹1,000

    To sales A/c - ₹1,000

(Being goods sold to B)

1 Jan., 2016

Bills receivable A/c  ...Dr - ₹1,000

     To B's A/c - ₹1,000

(Being bill accepted by B)

In the books of B:

1 Jan., 2016

Purchases A/c  ...Dr - ₹1,000

    To A's A/c - ₹1,000

(Being goods purchased on credit)

1 Jan., 2016

A's A/c  ...Dr - ₹1,000

     To bills payable A/c - ₹1,000

(Being bill accepted)