Question

A purchased goods for ₹ 15,000 from B on March 01, 2017 and accepted a bill of exchange drawn by B for the same amount. The bill was payable after 60 days. On April 28, B sent the bill to his bank for collection. The bill was duly presented by the bank. A dishonoured the bill and the bank paid ₹ 150 as noting charges.
Record the necessary journal entries for the above transactions in the books of A and B.

Answer 1

Books of B Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 01	A	Dr.		15,000
	To Sales A/c				15,000
	(Goods sold to A)
Mar. 01	Bills Receivable A/c	Dr.		15,000
	To A				15,000
	(A accepted the bill)
Apr. 28	Bill Sent for Collection A/c	Dr.		15,000
	To Bills Receivable A/c				15,000
	(Bill sent to bank for collection)
May 03	A	Dr.		15,150
	To Bill Sent for Collection A/c				15,000
	To Bank A/c				150
	(Bill dishonoured on due date and bank noting charges paid by bank)

Books of A Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 01	Purchases A/c	Dr.		15,000
	To B				15,000
	(Goods purchased from B)
Mar. 01	B	Dr.		15,000
	To Bills Payable A/c				15,000
	(Bill drawn by B, accepted)
May 03	Bills Payable A/c	Dr.		15,000
	Noting Charges A/c	Dr.		150
	To B				15,150
	(Bill dishonoured on due date and noting charges paid)