Question

Asha sold goods worth ₹ 19,000 to Nisha on March 2, 2016. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank @ 10% p.a. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.
On 5th June, Nisha paid ₹ 3,030 (including noting charges) in cash and accepted a new bill at one month for the amount due to Asha together with interest @ 15% p.a.
Record the necessary journal entries in the books of Asha and Nisha.

Answer 1

Asha’s Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Mar.02	Nisha	Dr.		19,000
	To Sales A/c				19,000
	(Goods sold)
Mar.02	Bills Receivable A/c	Dr.		15,000
	Cash A/c	Dr.		4,000
	To Nisha				19,000
	(Acceptance received)
Mar.02	Bank A/c	Dr.		14,625
	Discounting Charges A/c	Dr.		375
	To Bills Receivable A/c				15,000
	(Bill discounted @10% p.a.)
June 05	Nisha (15,000 + 30)	Dr.		15,030
	To Bank A/c				15,030
	(Bill dishonored)
June 05	Nisha	Dr.		150
	To Interest A/c				150
	(Interest due)
June 05	Cash A/c	Dr.		3,030
	Bills Receivable (New) A/c (12,000 + 150)	Dr.		12,150
	To Nisha				15,180
	(New Acceptance received)

Working Notes:

1. Amount of Discount$=\frac{15,000\times 10\times 3}{100\times 12}=\mathrm{Rs}375$

2. Amount of Interest$=\frac{12,000\times 15\times 1}{100\times 12}=\mathrm{Rs}150$

Nisha’s Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Mar.02	Purchases A/c	Dr.		19,000
	To Asha				19,000
	(Goods purchased)
Mar.02	Asha	Dr.		19,000
	To Cash A/c				4,000
	To Bills Payable A/c				15,000
	(Acceptance received)
June.05	Bills Payable A/c	Dr.		15,000
	Noting Charges A/c	Dr.		30
	To Asha				15,030
	(Bill dishonored)
June.05	Interest A/c	Dr.		150
	To Asha				150
	(Interest due)
June.05	Asha	Dr.		15,180
	To Bills Payable A/c (12,000+150)				12,150
	To Cash A/c				3,030
	(New Acceptance received)