Question

On january 1, 2018 mohan sold goods to sohan for ₹2, 500and drew on him a bill at 3months for the amount. sohan accepted and returned the bill to mohan. the bill was met on the due data. give journal entries in the books of mohan

Answer 1

                                             Journal Entries

                              In the Books of Mohan ( Drawer )

Date     Particular                                           LF      Debit            Credit

2018

1 Jan    Sohan A/c .........Dr                                      2,500

               To Sales A/c                                                                    2,500

          ( Being goods sold on credit )

1 Jan    Bills Receivable A/c..........Dr                      2,500

              To Sohan A/c                                                                   2,500

         ( Being bill drawn at 3 months )

4 Mar   Cash A/c .........Dr                                        2,500

              To Bills Receivable A/c                                                    2,500

        ( Being bill honoured on due date )