Question

Ramesh sold goods to suresh for 15,000 on 01.01.2017. on the same day, a bill was drawn And accepted by Suresh for 3 months.On the due date, the bill was dishonoured. You are required to pass necessary journal entries in the books of both the parties

Answer 1

Answer:

IN THE BOOKS OF RAMESH :

1.01.17

Suresh A/c Dr 15000

To Sales A/c 15000

(Being goods sold to Suresh. )

1.01.17

Bill's Receivable A/c Dr 15000

To Suresh A/c 15000

(Being Acceptance received from Suresh for 3 months. )

04.04.17

Suresh A/c Dr 15000

To Bill's Receivable A/c 15000

(Being Acceptance dishonored or

Bill dishonored. )

IN THE BOOKS OF SURESH:

1.01.17

Purchases A/c Dr 15000

To Ramesh A/c 15000

(Being goods purchased. )

1.01.17

Ramesh A/c Dr 15000

To Bill's Payable A/c 15000

(Being acceptance given for 3 months.)

04.04.17

Bills Payable A/c Dr 15000

To Ramesh A/c 15000

(Being acceptance dishonored or bill dishonored.)