Question

On 1st July 2015, Ram sold Manoj goods worth rs. 2,000. On the same date, Manoj accepted a
bill drawn upon him by Ram at 3 months for 2,000, Ram got the bill discounted at 6 per cent
per annum at his bank. On the due date, Manoj paid the required amount under the bill.
Give necessary journal entries in the books of both the parties.​

Answer 1

Answer:

the journal entries are the following

1. in the books of ram

1/6 manoj.............Dr 2000

to sales ac 2000

BR ac..............Dr 2000

to manoj 2000

bank ac ...........Dr 1970

intrest ac ..........Dr 30

to BR 2000

2. in the books of manoj

1/6 purchase ac..........Dr 2000

to ram 2000

ram ............Dr 2000

to BP ac 2000

4/9 BP ac ..........Dr 2000

to cash 2000

Explanation:

working note

calculation of intrest on discounting of bill

2000*6/100*3/12 = 30