Question

Asha sold goods worth Rs. 19,000 to Nisha on 2nd March, 2016. Rs. 4,000 were paid by Nisha immediately and for the balance, she accepted the bills of exchange drawn upon her by Asha payable after 3 months. Asha discounted the bill immediately with her bank. On the due date, Nisha dishonoured the bill and the bank paid Rs. 30 as noting charges.

Record the necessary journal entries in the books of Asha and Nisha.

Answer 1

In the Books of Asha
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt (Dr.)}& \text{Amt (Cr.)}\\ 2016& & & & \\ \text{Mar 2}& \text{Nisha's A/c}\text{Dr.}& & 19,000& \\ & \text{To Sales A/c}& & & 19,000\\ & \underset{–}{\text{(Goods sold to Nisha)}}& & & \\ \text{Mar 2}& \text{Cash A/c}\text{Dr.}& & 4,000& \\ & \text{Bills Receivable A/c}\text{Dr.}& & 15,000& \\ & \text{To Nisha's A/c}& & & 19,000\\ & \underset{–}{\text{(Rs. 4,000 cash and acceptance for Rs. 15,000 received)}}& & & \\ \text{Mar 2}& \text{Bank A/c}\text{Dr}& & 14,625& \\ & \text{Discounting Charges A/c}\text{Dr.}& & 375& \\ & \text{To Bills Receivable A/c}& & & 15,000\\ & \underset{–}{\text{(Bill discounted by bank)}}& & & \\ \text{Jun 5}& \text{Nisha's A/c}\text{Dr.}& & 15,030& \\ & \text{To Bank A/c}& & & 15,030\\ & \text{(Bill dishonoured on due date and noting charges paid)}& & & \end{array}$

Working Note:

Bill is assumed to be discounted at the rate of $10\%$ per annum.

Computation of Discount =Rs. $15,000\times 10\%\times \frac{3}{12}=Rs.375.$

In the Books of Nisha
JOURNAL
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt (Cr.)}& \\ 2016& & & & & \\ \text{Mar 2}& \text{Purchases A/c}\text{Dr.}& & 19,000& & \\ & \text{To Asha's A/c}& & & 19,000& \\ & \underset{–}{\text{(Goods purchased)}}& & & & \\ \text{Mar 2}& \text{Asha's A/c}\text{Dr.}& & 19,000& & \\ & \text{To Cash A/c}& & & 4,000& \\ & \text{To Bills Payable A/c}& & & 15,000& \\ & \text{(Rs. 4,000 cash and acceptance for Rs. 15,000 given to}& & & & \\ & \underset{–}{\text{Asha)}}& & & & \\ \text{Jun 5}& \text{Bills Payable A/c}\text{Dr.}& & 15,000& & \\ & \text{Noting Charges A/c}\text{Dr.}& & 30& & \\ & \text{To Asha's A/c}& & & 15,030& \\ & \text{(Bill dishonoured and noting charges due)}& & & & \end{array}$