Question

Y buys good from x for RS 7000 on 1 jan 2014 x draws a bill of exchange for two months for the amount on y which the latter accepts and return. It to x on the due date y honours the bill

Answer 1

in the books of y
     JOURNAL
    1 jan  purchases a/c  ....dr
                  to X

     1 jan bills payable a/c  ....dr
            to x
     4 march cash/bank a/c ....dr
            to bills payable a/c