Question

On 1st January 2010, X sold goods to Y for Rs.20,000 less 20% cash discount and Y paid 50% price immediately and drew a bill on Y for two months for the balance. This bill is duly accepted by Y. On due date the bill was dishonoured. Pass the journal entries in the books of X and Y.​

Answer 1

in the book of Mr X.

1) Mr y a/c. Dr. 20000

to sales a/c. 20000

(being goods sold to Mr y)

2) cash a/c. Dr 10000

bill receivable a/c. Dr. 10000

to Mr y. 20000

(being cash and bills received from Mr y)

3) Bank a/c. Dr. 10000

to bill receivable a/c. 10000

4) Mr y a/c. Dr. 10000

to bank a/c 10000

in the book of Mr y

1) purchase a/c. Dr. 20000

to Mr X. 20000

2) Mr X a/c. Dr. 20000

to cash a/c. 10000

to bills payable a/c. 10000

3) bills payable a/c. Dr. 10000

to bank a/c. 10000

4) bank a/c. Dr. 10000

to Mr X. 10000

Answer 2

Explanation:

hii

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