Question

B owed ₹ 5,100 to A. On 15th January, 2017, he accepted a bill for ₹ 5,000 for two months drawn by A in full settlement of his debt. On 18th January, 2017, 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 (Rs)	Credit Amount (Rs)
2017
Jan.15	Bills Receivable A/c	Dr.		5,000
	Discount Allowed A/c	Dr.		100
	To B				5,100
	(B accepted the bill)
Jan. 18	C	Dr.		5,000
	To Bills Receivable A/c				5,000
	(Bill endorsed in favour of C)

Books of B Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.15	A	Dr.		5,100
	To Bills Payable A/c				5,000
	To Discount Received A/c				100
	(Bill drawn by A, accepted)
Mar. 18	Bills Payable A/c	Dr.		5,000
	To Cash A/c				5,000
	(Bill honoured on maturity)

Books of C Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 18	Bills Receivable A/c	Dr.		5,000
	To A				5,000
	(Bills receivable was received from A)
Mar. 18	Cash A/c	Dr.		5,000
	To Bills Receivable A/c				5,000
	(Bill honoured on maturity)