Question 10.
On 10th July, 2017, A sold goods to B for ₹ 35,000 plus IGST @ 18%. He drew on him a 3 months bill for ₹ 35,000 and received cheque for the balance amount. B accepted the bill. After 10 days, A endorsed the bill to his creditor C. On due date, acceptance is duly met. Show entries in the books of A, B and C.
Answers
Explanation:
hgey3766+ygdx5784:yuicu
The journal entries in the books of A, B and C are shown below:
Explanation:
The journal entries in the books of A, B and C are as:
In the Books of A
2017
July 10
B's A/c.........................................Dr Rs 41,300
To Sales A/c................................Cr Rs 35,000
To Output IGST A/c...................Cr Rs 6,300
Being goods sold to B
July 10
Bills Receivable A/c............................Dr Rs 35,000
Bank A/c..................................................Dr Rs 6,300
To B's A/c...............................................Cr Rs 41,300
Being B acceptance was received
July 20
B's A/c..........................................................Dr Rs 35,000
To Bills Receivable A/c............................Cr Rs 35,000
Being bill endorsed in favor of C
In the Books of B
2017
July 10
Purchase A/c....................................Dr Rs 35,000
Input IGST A/c...................................Dr Rs 6,300
To A's A/c.............................................Cr Rs 41,300
Being goods bought from A
July 10
A's A/c.....................................Dr Rs 41,300
To Bills Payable A/c............Cr Rs 35,000
To Bank A/c...........................Cr Rs 6,300
Being bill drawn by A accepted
October 13
Bills Payable A/c............................Dr Rs 35,000
To Cash A/c...................................Cr Rs 35,000
Being bill payment is made on due date
In the books of C
2017
July 20
Bills Receivable A/c.......................Dr Rs 35,000
To A's A/c....................................Cr Rs 35,000
Being BR received from A
October 13
Cash A/c......................................Dr Rs 35,000
To Bills Receivable A/c..........Cr Rs 35,000
Being amount of bill received on maturity
Working Note:
IGST = Rs 35,000 × 18%
= Rs 6,300
You can learn more from here about journal entries:
brainly.in/question/8370405
brainly.in/question/14316806