Question

Ram sold the goods valued at rupee 3000to shyam on 1st july ,2018 and drew a bill at 3 month for the same. Shyam accepted the bill Ram discounted the bill with his banker at 5% per annum in bill was dishonour on the due date Bank incorred rupees 150 as noting charge give journal entry in the book of Ram and Shyam

Answer 1

in the book of Ram

your journal entry will be:

1) Shyam a/c. Dr. 3000

to sales a/c. 3000

(Being goods sold to Shyam)

2) Bill's receivable a/c. Dr. 3000

to Shyam a/c. 3000

(being bill received from Shyam)

3) bank a/c. Dr. 2750

discount a/c. Dr. 150

to Bill receivable a/c. 3000

(being bills discounted at 5 percentage)

4) Shyam a/c. Dr. 3150

to Bank a/c. 3150

(bill dishonoured and nothing charge of rupees 150 paid by bank)

in the book of Shyam

1) purchase a/c. Dr. 3000

to Ram a/c. 3000

(being goods purchased from Ram)

2) Ram a/c. Dr. 3000

to bills payable a/c 3000

(being bill paid to Ram )

3) bills payable a/c. Dr. 3000

to bank a/c. 2750

to discount a/c. 150

(Bank bills discounted at 8% p.a.)

4) bank a/c. Dr. 3150

to Ram a/c. . 3150