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.

Solution

## In the Books of Asha                                                                   JOURNAL Date                                        ParticularsL.F.Amt (Dr.)Amt (Cr.)2016Mar 2Nisha's A/c                                                                               Dr.19,000   To Sales A/c19,000(Goods sold to Nisha)                                                         –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Mar 2Cash A/c                                                                                   Dr.      4,000Bills Receivable A/c                                                                Dr.    15,000   To Nisha19,000(Rs. 4,000 cash and acceptance for Rs. 15,000 received) ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Mar 2Bank A/c                                                                                   Dr14,625Discounting Charges A/c                                                        Dr.      375   To Bills Receivable A/c15,000(Bill discounted by bank)                                                  –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Jun 5Nisha's A/c                                                                                Dr.15,030   To Bank A/c15,030(Bill dishonoured on due date and noting charges paid) Working Note: Bill is assumed to be discounted at the rate of 10% per annum. Computation of Discount =Rs. 15,000×10%×312=Rs. 375.                                                            In the Books of Nisha                                                                     JOURNAL Date                                        ParticularsL.F.Amt. (Dr.)Amt (Cr.)2016Mar 2Purchases A/c                                                                        Dr.19,000   To Asha's A/c19,000(Goods purchased)                                                           ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Mar 2Asha's A/c                                                                              Dr.19,000   To Cash A/c  4,000   To Bills Payable A/c15,000(Rs. 4,000 cash and acceptance for Rs. 15,000 given toAsha)                                                                                           ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Jun 5Bills Payable A/c                                                                  Dr.15,000Noting Charges A/c                                                              Dr.       30   To Asha's A/c15,030(Bill dishonoured and noting charges due)

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