Question

Asha sold goods worth Rs 19,000 to Nisha on March 02, 2017. Rs 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. 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

Books of Asha Journal
Date			Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Mar.02	Nisha			Dr.		19,000
		To Sales A/c					19,000
	(Goods sold to Nisha)
Mar.02	Cash A/c			Dr.		4,000
	Bills Receivable A/c			Dr.		15,000
			To Nisha				19,000
	(Cash and Nisha's acceptance received)
Mar.02	Bank A/c			Dr.		14,635
	Discount A/c			Dr.		375
			To Bills Receivable A/c				15,000
	(Nisha's aceptance discounted with bank at 10% p.a.)
	Note: In this question rate of discount is not given, the rate of discount (10% p.a.) has been assumed).
June.05	Nisha			Dr.		15,030
			To Bank A/c				15,030
	(Nisha's acceptance dishonoured and bank paid Rs 30 as noting charges)

Books of Nisha Journal
Date		Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
2017
Mar.02	Purchases A/c				Dr.		19,000
			To Asha					19,000
	(Goods bought from Asha)
Mar.02	Asha				Dr.		19,000
		To Bills Payable A/c						15,000
		To Cash A/c						4,000
	(Asha's bill accepted payable after three month and Rs 4,000 paid in cash)
Jun.05	Bills Payable A/c			Dr.			15,000
	Noting Charges A/c			Dr.			30
		To Asha						15,030
	(Asha’s bill dishonoured)