Question

A sold goods to B for ₹ 60,000 Charging IGST @18% and immediately drew a bill on B who duly accepted the same. A endorsed the bill to C. C endorsed it to his creditor D. D discounted the bill for ₹ 68,000. On the date of maturity, the bill was dishonoured and Bank paid noting charges amounting to ₹ 200.
Show Journal entries in the books of all the parties to record these transactions.

Answer 1

Books of A Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	B	Dr.		70,800
	To Sales A/c				60,000
	To Output IGST A/c				10,800
	(Goods sold to B plus 18% Inter-state GST)
	Bills Receivable A/c	Dr.		70,800
	To B				70,800
	(B accepted the bill)
	C	Dr.		70,800
	To Bills Receivable A/c				70,800
	(Bill endorsed in favour of C)
	B	Dr.		71,000
	To C				71,000
	(Bills dishonoured on due date and noting charges receivable from B and payable to C)

Books of B Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Purchases A/c	Dr.		60,000
	Input IGST A/c	Dr.		10,800
	To A				70,800
	(Goods purchased from A)
	A	Dr.		70,800
	To Bills Payable A/c				70,800
	(Bill drawn by A, accepted)
	Bills Payable A/c	Dr.		70,800
	Noting Charges A/c	Dr.		200
	To A				71,000
	(Bill dishonoured on due date and noting charges paid)

Books of C Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bills Receivable A/c	Dr.		70,800
	To A				70,800
	(Bills receivable, received from A)
	D	Dr.		70,800
	To Bills Receivable A/c				70,800
	(Bill endorsed in favour of D)
	A	Dr.		71,000
	To D				71,000
	(Bill dishonoured on due date and noting charges receivable from A and payable to D)

Books of D Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bills Receivable A/c	Dr.		70,800
	To C				70,800
	(Bills receivable, received from C)
	Bank A/c	Dr.		68,000
	Discounting Charges A/c	Dr.		2,800
	To Bills Receivable A/c				70,800
	(Bill discounted with bank)
	C	Dr.		71,000
	To Bank A/c				71,000
	(Bill dishonoured on due date and noting charges paid by bank)