Question 13.
Ram draws a bill for ₹ 2,000 on Shyam on 15th September, 2017 for 3 months. On maturity, Shyam failed to honour th bill.
Pass the necessary Journal entries in the books of Ram and Shyam.
Answers
The journal entry in the books of R and S are shown below:
Explanation:
The journal entry in the books of Ram (R) is as:
2017
September, 15
Bills Receivable A/c..........................Dr Rs 2,000
Shyam A/c........................................Cr Rs 2,000
Being acceptance of S received
2017
December, 18
Shyam A/c........................................Dr Rs 2,000
Bills Receivable A/c............................Cr Rs 2,000
Being the acceptance of dishonoured
The journal entry in the books of Shyam (S) is as:
2017
September, 15
Ram A/c........................................Dr Rs 2,000
Bills Payable A/c............................Cr Rs 2,000
Being bill drawn by ram was accepted
2017
December, 18
Bills Payable A/c............................Dr Rs 2,000
Ram A/c..........................................Cr Rs 2,000
Being bills payable dishonoured
Explanation:
Bills receivable a/c dr 2000
To Shyam a/c 2000
Shyam a/c Dr 2000
To bills receivable a/c 2000