5.On Jan 15, 2015, Kartar Sold goods for Rs.30,000 to Bhagwan and drewupon him three bills of exchanges of Rs.10,000 each payable after onemonth, two month, and three months respectively. The first bill wasretained by Kartar till its maturity. The second bill was endorsed by himin favour of his creditor Ratna and the third bill was discounted by himimmediately @ 6% p.a. All the bills were met by Bhagwan. Journalisethe above transactions in the books of Kartar and Bhagwan. Also prepareledger accounts in books of Kartar and Bhagwan.
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In the Books of Kartar
Journal Entries
Date Particulars LF Amt.(Dr) Amt.(Cr)
2011
Jan 15 Bhagwan Dr
To Sales A/c
(Being goods sold to Bhagwan)
30,000 30,000
Jan 15 Bills Receivable Ist A/c Dr
Bills Receivable IInd A/c Dr
Bills Receivable IIIrd A/c Dr
To Bhagwan
(Being three acceptance received each for 10,000)
10,000
10,000
10,000
30,000
Jan 15 Ratan Dr
To Bills Receivable IInd A/c
(Being IInd bill endorsed in favour of Ratan)
10,000 10,000
Jan 15 Bank A/c Dr
Discount A/c Dr
To Bills Receivable IIIrd A/c
(Being IIIrd bill discounted by the bank at the rate of 6% per annum)
9,850
150
10,000
Jan 18 Cash A/c Dr
To Bills Receivable Ist A/c
(Being payment received on maturity)
10,000 10,000
Bhagwan's Account
Date Particulars JF Amt.(Rs.) Dr. Date Particulars JF Amt.(Rs.) Cr.
2011 2011
Jan 15 To Sales A/c 30,000 Jan 15 By Bills Receivable Ist
By Bills Receivable IInd
By Bills Receivable IIIrd
10,000
10,000
10,000
30,000 30,000
In the Books of Bhagwan
Journal Entires
Date Particulars LF Amt.(Dr.) Amt.(Cr)
2011
Jan 15 Purchase A/c Dr
To Kartar
(Being goods purchased)
30,000 30,000
Jan 15 Kartar Dr
To Bills Payable Ist A/c
To Bills Payable IInd A/c
To Bills Payable IIIrd A/c
(Being three acceptances given each for 10,000)
30,000 10,000
10,000
10,000
Feb 18 Bills Payable Ist A/c Dr
To Cash A/c
(Being Ist bill paid on maturity)
10,000 10,000
Mar 18 Bills Payable IInd A/c Dr
To Bank A/c
(Being IInd bill paid on maturity)
10,000 10,000
Apr 18 Bills Payable IIIrd A/c Dr
To Bank A/c
(Being IIIrd bill met on maturity)
10,000 10,000
Kartar's Account
Date Particulars JF Amt.(Rs.) Dr. Date Particular JF Amt.(Rs.) Cr.
2011 2011
Jan 15 To Bill Payable Ist
To Bill Payable IInd
To Bills Payable IIIrd
10,000
10,000
10,000
30,000