Question

X sold goods to Y for RS.10,000on 15TH March ,2019 onthe same day,Y accepted a bill drawn upon him by

X at four months for rs.10,000. .X discounted the bill on 15th April 2019 at 18% p.a.at his bank and y met the

bill on maturity..Make journal entries in the books of boththe parties.​

Answer 1

Answer:

Option A is the correct one.   

The Journal entry for recording the dishonor of a bill will be:

 Y (Debtors) a/c Dr                  10000

        To Bills receivable A/c                  10000

( Being bill dishonored)

Answer 2

IN THE BOOK OF X

Answer:

Y's a/c _________ Dr. 10,000

To sale's a/c 10,000

(Being goods sold to Y)

Bill receivable a/c _____ Dr. 10,000

To Y's a/c 10,000

(Being bill received from Y for 4 month)

Cash/ bank a/c ____Dr. 9550

Discount a/c 450

To bill receivable a/c 10,000

(Being bill discounted for his bank @ 18% p.a)

July 18th. No entry

IN THE BOOK Y

Purchase a/c ____Dr 10,000

To X's a/c

(Being goods purchase from x)

X's a/c ____Dr. 10,000

To bill payable a/c 10,000

(Being bill accepted and return to x for 4 month)

April 15th. no entry

Bill payable a/c ____Dr. 10,000

To cash/ bank a/c 10,000

(Being bill met on due date)