Q.6. Asha Devi sold goods of * 5,000 to Usha Devi on 5th April, 2011 on credit and drew a bill of exchange for
months. On the same date Usha Devi accepted and returned to Asha. Asha Devi retained with her tillit
due date the bill was presented for payment and honoured. Give Journal entries in the books of Asha
Devi and Usha Devi to record the above bills transactions.
Answers
Journal Entries
In the Books of Asha Devi (Drawer)
Date Particulars LF Debit Credit
2011
5 Apr Usha Devi A/c ..........Dr 5000
To Sales A/c 5000
( Being sold goods on credit )
5 Apr Bills Receivable A/c ..........Dr 5000
To Usha Devi A/c 5000
( Being bill drawn 3 months )
8 July Cash A/c ........Dr 5000
To Bills Receivable A/c 5000
( Being bill honoured on due date )
Journal Entries
In the Books of Usha Devi (Drawee)
Date Particulars LF Debit Credit
2011
5 Apr Purchase A/c .......Dr 5000
To Asha Devi A/c 5000
( Being bought goods on credit )
5 Apr Asha Devi A/c ...........Dr 5000
To Bills Payable A/c 5000
( Being Bill accepted on 3 months )
8 July Bills Payable A/c .........Dr 5000
To Cash A/c 5000
( Being bill honoured on due date )