Question

On 1

st February 2019, A sold goods for Rs 60,000 to B and Drew upon him three bills of exchange:

First for Rs. 10,000 payable after 30 days, second for Rs 20,000 payable after 60 days and third for Rs.

30,000 payable after 90 days. B accepted all the three bills. The first bill was retained by A till its maturity.

Second bill was endorsed by A to his creditors C and the third bill was discounted by him @ 2% p.a.on the

same day. First and second bills were duly met but third bill was dishonoured and bank paid noting charges

of Rs. 500. Pass journal entries in the books of A, B and C.​

Answer 1

Journal Entries

B's A/C DR $60,000$

         To Sales A/C $60,000$

( Being goods sold to B)

Bills Receivable  $1$A/c DR $10,000$

Bills Receivable $2$ A/c DR $20,000$

Bills Receivable $3$ A/C DR  $30,000$

                     To B's A/c $60,000$

( Being bills drawn to B for the purchase done )

C's A/C DR $20,000$

         To B/R 2 A/C $20,000$

( Being bill paid by C)

Bank A/C DR $29,850$

Discounting Charges A/C DR  $150$

                     To Bill Receivable $3$ A/C $30,000$

( Being bill discounted by the bank)

Cash A/C DR $10,000$

          To Bills Receivable A/C $10,000$

( Being bill received in cash )

B's A/C DR $20,500$

         To Bank A/C $20,500$

( Being bill dishonored by and noting charges also included )

Reason: Plot the following in a table format in 4 columns i.e. Particulars,L.F. , Debit and Credit

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