Question

8.
On 1st January, 2017 Jai bought goods worth 2,000 from Vijay on credit and
paid half the amount next day in cash and accepted 2 months Bill for the
remaining amount. Vijay discounted the Bill with his bank on 4th February @ 6%
per annum. Draw up necessary journal entries in the books of Vijay.​

Answer 1

Answer:

2017

Jan 1 - Jai A/c dr. 2,000

To sales A/c 2,000

(being goods sold to Jai on credit)

Jan 2 - Cash A/c dr. 1,000

To Jai A/c. 1,000

(being half payment received by Jai)

Jan 2 - Bills receivable A/c dr. 1,000

To Jai A/c 1,000

(being bill drawn and accepted for the remaining amount)

Feb 4 - Bank A/c dr. 990

Discount A/c dr. 10

To bills receivable A/c 1,000

(being bill discounted with the bank)