Question

Anil drew a 3 months' bill for Rs. 10,000 upon Sunil. The bill was endorsed in favour of Vimal who endorsed it in favour of Kamal who in turn endorsed it in favour of Anil to discharge his own acceptance. Prepare journal in the books of Anil, Sunil, Vimal and Kamal.

Answer 1

In the Books of Anil
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Bills Receivable A/c}\text{Dr.}& & 10,000& \\ & \text{To Sunil's A/c}& & & 10,000\\ & \underset{–}{\text{(Acceptance of the bill received from Sunil)}}& & & \\ & \text{Vimal's A/c}\text{Dr.}& & 10,000& \\ & \text{To Bills Receivable A/c}& & & 10,000\\ & \underset{–}{\text{(Bill endorsed in favour of Vimal)}}& & & \\ & \text{Bills Receivable A/c (New)}\text{Dr.}& & 10,000& \\ & \text{To Bills Receivable A/c (Old)}& & & 10,000\\ & \text{(Receipt of a duly endorsed bill towards the payment of an}& & & \\ & \text{old bill)}& & & \end{array}$

In the Books of Sunil
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Anil's A/c}\text{Dr.}& & 10,000& \\ & \text{To Bills Payable A/c}& & & 10,000\\ & \text{(Acceptance of the bill given to Anil)}& & & \end{array}$

In the Books of Vimal
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Bill Receivable A/c}\text{Dr.}& & 10,000& \\ & \text{To Anil's A/c}& & & 10,000\\ & \underset{–}{\text{(Receipt of a duly endorsed bill)}}& & & \\ & \text{Kamal's A/c}\text{Dr.}& & 10,000& \\ & \text{To Bills Receivable A/c}& & & 10,000\\ & \text{(Endorsed bill endorsed in favour of Kamal)}& & & \end{array}$

In the Books of Kamal
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Bills Receivable A/c}\text{Dr.}& & 10,000& \\ & \text{To Vimal's A/c}& & & 10,000\\ & \underset{–}{\text{(Receipt of duly endorsed bill)}}& & & \\ & \text{Bill Payable A/c (Old)}\text{Dr.}& & 10,000& \\ & \text{To Bills Receivable A/c (New)}& & & 10,000\\ & \text{(Own acceptance discharged by endorsing an endorsed bill)}& & & \end{array}$

Note: Since the question is silent with regard to payment of bill on maturity, therefore no journal entries are passed to that effect.