Question

On 1st January 2020 Hemant sold goods of ₹ 18500 to Nitin. On the same date (3)

Hemant drew a bills of exchange for ₹ 18500 at 2 months. On the due date the bill was

dishonoured.

Give journal entries in the books of Hemant and Nitin.​

Answer 1

On 1st January 2020 Hemant sold goods of ₹ 18500 to Nitin. On the same date, Hemant drew a bill of exchange for ₹ 18500 at 2 months. On the due date the bill was dishonoured. Give journal entries in the books of Hemant and Nitin.

Solution:

• In the books of Hemant

Jan. 1 Nitin's A/c Dr. 18,500

To sales A/c 18,500

(Being goods sold on credit.)

Jan. 1 Bills Receivable A/c Dr. 18,500

To Nitin's A/c 18,500

(Being bill drawn and acceptance from Nitin recieved.)

Mar. 4 Bank/Cash A/c Dr. 18,500

To Bills Receivable A/c 18,500

(Being Nitin's acceptance honoured on due date.)

• In the books of Nitin

Jan. 1 Purchases A/c Dr. 18,500

To Hemant's A/c 18,500

(Being goods purchased on credit.)

Jan. 1 Hemant's A/c Dr. 18,500

To Bills Payable A/c 18,500

(Being our acceptance is given.)

Mar. 4 Bills Payable A/c 18,500

To Bank/Cash A/c 18,500

(Being our acceptance is honoured on the due date.)