Question

Q.30. Abdulla sold goods to Tahir on Jan. 17,2017 for Rs.18,000. He drew a bill of exchange for the same
amount on Tahir for 45 days. On the same date Tahir accepted the bill and returned it to Abdulla. On the due
date Abdulla presented the bill to Tahir which was dishonored. Abdulla paid Rs 40 as noting charges. Five days
after the dishonour of his acceptance Tahir settled his debt by making a payment of Rs. 18,700 including
interest and noting charges.
Record the necessary journal entries in the books of Abdulla and Tahir.
(6)​

Answer 1

Answer:

In books of Abdulla

2017

jan.17. Tahir. dr. 18000

To sales account 18000

jan. 17. Bills receivable a/c. dr. 18000

To Tahir. 18000

6 mar. Tahir. dr 18040

To B/R account. 18000

To cash account. 40

11 mar cash account. dr. 18700

To Tahir. 18040

To interest acc. 660

Books of Tahir

jan 17. purchase account. dr 18000

To Abdulla. 18000

jan.17. Abdulla. dr. 18000

To Bills payable account 18000

mar 6 Bills payable account dr 18000

noting charges.acc. dr. 40

To Abdulla. 18040

mar 11. Abdulla. dr 18040

Intrest account dr 660

To cash account. 18700