Question

On 1-6-2008 Suresh sold goods worth rupees. 10000 to Rakesh. On the same date he Drew on Rakesh for 3 months. Rakesh honoured the bill on the due. Pass journal entries in the books of both the parties

Answer 1

In books of suresh
: when goods sold to rakesh

rakesh A/c dr. 10000
to sales. 10000

:when bill is accepted

bills receivable A/c dr. 10000
to rakesh A/c. 10000

¤when bill is honoured


cash A/c dr 10000
to bills receivable A/c. 10000

In books of rakesh
; when goods purchased

purchases A/c dr. 10000
to suresh A/c. 10000

when bills payable accepted

suresh A/c dr 10000
to bills payable A/c 10000

when bill payable amt is paid on due date

;bills payable A/c dr 10000
to cash A/c 10000