Question

Drew 3 months bill on Rabin for Rs. 5,000

Answer 1

Journal Entry :

At the time of drawing bill -

Bills Receivable A/C    Dr   Rs.5000

     To Rabin A/C                 Rs.5000

(Being bills drawn on Rabin )

At the time of receipt of payment against the bill on the due date ( 3 months + grace period of 3 days) -

Cash A/C   (or) Bank A/C    Dr    Rs.5000

    To Bills Receivable A/C    Rs.5000

(Being payment received against the bill drawn)