sold goods on credit to mr.raghu Rs.35000
Answers
Journal entries in the books of Raghu:
Jan. 15, 2011
a) Devendra A.c Dr. 35,000
To Sales A/c 35,000
(Goods sold to Devendra)
b) Bills Receivable 1 (1 month)A/c Dr. 5,000
Bills Receivable 2 (3 months) A/c Dr. 20,000
Bills Receivable 3 (4 months) A/c Dr. 10,000
To Devendra A/c 35,000
(Bills receivable received)
c) Dewan A/c Dr. 5,200
To Bills Receivale 1 A/c 5,000
To Discount A/c 200
(First bill endorsed to Dewan)
d) Bank A/c Dr. 19,700
Discount A/c Dr. 300
To Bills Receivable 2 20,000
(Second bill discounted at 6%)
e) Devendra A/c Dr 20,030
To Bank A/c 20,030
(Second bill dishonoured and noting charges paid by bank)
f) Bill sent for collection A/c Dr. 10,000
To Bills Receivable 3 A/c 10,000
(Third bill sent for collection)
g) Devendra A/c Dr. 10,200
To Bank A/c 10,200
(Third bill dishonoured and noting charges paid by bank)
h) Bank A/c Dr. 20,030
To Devendra A/c 20,030
(Second bill paid along with interest by Devendra)
i) Bank A/c Dr. 10,200
To Devendra A/c 10,200
(Third bill paid after it was dishonoured)
j) Interest A/c Dr. 1,000
To Bills Receivable A/c 1,000
(Interest amount paid for the delay in settling the bills)