Question

Raja sold goods worth Rs.20000 on credit to Gokul.He received two bills receivable for the amount Rs.12000; 8000 respectively with 3 months and 2 months due.The first bill of Rs.12000 was retained in hand and honoured on the
due date.The second bill Rs.8000 was discounted for Rs.7920 .On the due date,it was also met.Give Journal Entries In The Books Of Raja And Gokul. 



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Answer 1

Explanation:

in books of raja

Gokul 20000

to sales 20000

Bills Receivable 12000

To Gokul 12000

(bill for 3 months)

Bills Receivable 8000

To Gokul 8000

(bill for 2 months)

Cash/ Bank 12000

To Bills Receivable 12000

(Bill honoured)

Bank 7920

Discount 80

To Bills Receivable 8000

(bill discounted)

discounted bill honoured no entry in books of drawer

in books of gokul

Purchase 20000

to Raja 20000

Raja 12000

to bills payable 12000

(bill for 3 months)

Raja 8000

to bills payable 8000

(bill for 2 months)

Bills payable 12000

To cash/ bank 12000

Bills payable 8000

To cash/ bank 8000