Question

X sells goods for 2,500 to Y on 15th August, 2018 and on the same day draws a bill on Y at 2 months for the
amount. Y accepts it and returns it to X. X endorses it after 10 days to his creditor Z. On the due date the bill is
met.
Enter the above transactions in the Journal of X, Y and Z.​

Answer 1

Answer:

Journal entries in the books of X :-

15-08-18   Y's A/C                  Dr. 2500

                     To Sales A/C                     2500

15-08-18   Bills Receivable A/C            Dr. 2500

                     To Y's A/C                                         2500

25-08-18   Z's A/C                              Dr. 2500

                     To Bill Receivable A/C                  2500

Journal entries in the books of Y :-

15-08-18    Purchase A/C            Dr. 2500

                        To X's A/C                           2500

15-08-18    X's A/C                       Dr. 2500

                     To Bill Payable A/C               2500

28-10-18    Bill Payable A/C            Dr. 2500

                        To Bank/Cash A/C                 2500

Journal entries in the books of Z :-

25-08-18   Bill Receivable A/C             Dr. 2500

                         To X's A/C                                    2500

28-10-18   Bank/Cash A/C                Dr. 2500

                     To Bill Receivable A/C               2500