Question

Amar sells goods to Bhola for ₹ 10,000 plus CGST and SGST @ 9% each. He receives the GST amount in cash and draws upon Bhola a bill for the balance amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bank at a discount of ₹ 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his bank and his expenses amounting to ₹ 100. Bhola gives a fresh bill of 2 months' date to Amar for ₹ 10,250, which he meets at maturity. Show necessary Journal entries in Amar's books.

Answer 1

Journal in the books of Amar (Drawer)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Bhola’s A/c	Dr.		11,800
	To Sales A/c				10,000
	To Output CGST A/c				900
	To Output SGST A/c				900
	(Goods sold to Bhola)
	Cash A/c	Dr.		1,800
	Bills Receivable A/c	Dr.		10,000
	To Bhola’s A/c				11,800
	(Cash and bill received)
	Bank A/c	Dr.		9,850
	Discounting Charges A/c	Dr.		150
	To Bills Receivable A/c				10,000
	(Bill discounted)
	Bhola’s A/c	Dr.		10,100
	To Bank A/c				10,100
	(Bill dishonoured)
	Bhola’s A/c	Dr.		150
	To Interest A/c				150
	(Interest due)
	Bills Receivable A/c	Dr.		10,250
	To Bhola’s A/c				10,250
	(New bill received)
	Cash A/c	Dr.		10,250
	To Bills Receivable A/c				10,250
	(New bill met on maturity)

Journal in the books of Bhola (Drawee)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Purchases A/c	Dr.		10,000
	Input CGST A/c	Dr.		900
	Input SGST A/c	Dr.		900
	To Amar’s A/c				11,800
	(Goods purchased from Amar)
	Amar’s A/c	Dr.		11,800
	To Bills Payable A/c	Dr.			10,000
	To Cash A/c				1,800
	(Cash paid and bill accepted)
	Bills Payable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		100
	To Cash A/c				10,100
	(Bill dishonoured)
	Interest A/c	Dr.		150
	To Amar’s A/c				150
	(Interest due)
	Amar’s A/c	Dr.		10,250
	To Bills Payable A/c				10,250
	(New bill accepted)
	Bills Payable A/c	Dr.		10,250
	To Cash A/c				10,250
	(New bill met on maturity)