Question

B owed ₹ 20,400 to A. On 15th January, 2019, he accepted a bill for ₹ 20,000 for two months drawn by A in full settlement of his debt. On 18th January, 2019, A endorsed the bill to his creditor C. The bill was duly met on the date of maturity. Pass Journal entries in the books of A, B and C.

Answer 1

Books of A Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan.15	Bills Receivable A/c	Dr.		20,000
	Discount Allowed A/c	Dr.		400
	To B				20,400
	(B accepted the bill)
Jan. 18	C	Dr.		20,000
	To Bills Receivable A/c				20,000
	(Bill endorsed in favour of C)

Books of B Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan.15	A	Dr.		20,400
	To Bills Payable A/c				20,000
	To Discount Received A/c				400
	(Bill drawn by A, accepted)
Mar. 18	Bills Payable A/c	Dr.		20,000
	To Cash A/c				20,000
	(Bill honoured on maturity)

Books of C Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 18	Bills Receivable A/c	Dr.		20,000
	To A				20,000
	(Bills receivable was received from A)
Mar. 18	Cash A/c	Dr.		20,000
	To Bills Receivable A/c				20,000
	(Bill honoured on maturity)