Question

On 01.01.2017, sundar sold goods to mahesh on credit for Rs. 10,000. Sundar drew a bill of exchange and Mahesh accepted.after acceptance, the bill was returned to Sundar. On the due date, the bill was dishonoured. Pass necessary journal entries in the books of both parties

Answer 1

Answer:

IN THE BOOKS OF SUNDAR

1) Mahesh A/c Dr 10000

To Sales A/c 10000

(Being goods sold on credit)

2) Bills Receivable A/c Dr 10000

To Mahesh A/c 10000

(Being acceptance given by Mahesh)

3) Mahesh A/c Dr 10000

To Bill's Receivable A/c 10000

(Being bill dishonored)

IN THE BOOKS OF MAHESH

1) Purchases a/c Dr 10000

To Sundar a/c 10000

2) Sundar A/c Dr 10000

To Bill's Payable A/c 10000

3) Bill's Payable A/c Dr 10000

To Sundar A/c 10000