Question

Following was the position of debtor and creditor of Gautam as on $\mathrm{1.1.2011}$

Items	Debtors(Rs.)	Creditors(Rs.)
Babu	$5,000$	-
Chanderkala	$8,000$	-
Kiran	$13,500$	-
Anita	$14,000$	-
Anju	-	$5,000$
Sheiba	-	$12,000$
Manju	-	$6,000$

The following transactions took place in the month of Jan $2011$
Jan $2$
Drew on Babu at two months after date at full settlement for Rs. $4,800$.
Babu accepted the bill and returned it on $\mathrm{5.1.2011}$.
Jan $4$
Babu's bill discounted for Rs. $4,750$.
Jan $8$
Chanderkala sent a promissory note for Rs. $8,000$ payable three months after date.
Jan $10$
Promissory note received from Chanderkala discounted for Rs. $7,900$.
Jan $12$
Accepted Sheiba draft for the amount due payable two months after date.
Jan $22$
Anita sent his promissory note payable after two months.
Jan $23$
Anita's promissory note endorsed in favour of Manju.
Jan $25$
Accepted Anju's draft payable after the three months.
Jan $29$
Kiran sent Rs. $2,000$ in cash and a promissory note for the balance payable after three months.
Record the transactions in the proper subsidiary books.

Answer 1

Bills Receivable Book

No

Date of Bill $2006$

From Received $2006$

From Whom of Bill

Drawer Whom Received

Acceptor

Where

Term Payable

Due Date $2011$

LF

Amt.

Cash Book Folio

Remarks

$1$

Jan $2$

Jan $5$

Babu

Self

Babu

$2$ months

Mar $5$

$$,800$

Total

$4,800$

Bills Payable Book

No

Date of Bill $2006$

To Whom Given

Drawer

Payee

Where Payable

Term

Due Date $2011$

Ledger

Amt.

Date Paid

Cash Book Folio

Remarks

$1$

Jan $12$

Sheiba

Sheiba

-

$2$ months

Mar $15$

$12,000$

$2$

Jan $25$

Anju

Anju

-

$2$ months

Apr $28$

$5,000$

Total

$17,000$

Cash Book

Date	Particulars	JF	Cash(Rs.)	Bank(Rs.)Dr	Date	Particulars	JF	Cash(Rs.)	Bank(Rs.)Cr
$2011$					$2011$
Jan $4$	To Bills Receivable A/c			$$,750$
Jan $10$	To Bills Receivable A/c			$7,900$
Jan $29$	To Kiran A/c		$2,000$	$12,650$	Jan $31$	By Balance c/d		$2,000$	$12,650$

Note: There is difference between Bills of Exchange and Promissory Note. Incase of Promissory Note, parties are makers and payees. However, in Bills of Exchange parties are drawer, drawee(acceptor) and payee on account difference, Promissory Note has not been recorded in Bills Receivable and Bills Payable book.
In the Books of Guatam
Journal Entries

Date	Particulars	LF	Amt.(Dr)	Amt.(Cr)
$2011$
Jan $5$	Discount Allowed A/c Dr To Babu (Being Babu's acceptance received and allowed his discount Rs. $200$)		$200$	$200$
Jan $4$	Discount A/c Dr To Bills Receivable A/c (Being Babu's acceptance discounted with a discount of Rs. $50$)		$50$	$50$
Jan $8$	Bills Receivable A/c Dr To Chanderkala (Being promissory note from Chanderkala received)		$8,000$	$8,000$
Jan $10$	Discount A/c Dr To Bills Receivable A/c (Being Chanderkala's promissory note discounted with bank at discount of Rs. $100$)		$100$	$100$
Jan $22$	Bills Receivable A/c Dr To Anita (Being promissory note received from Anita)		$14,000$	$14,000$
Jan $23$	Manju Dr To Bills Receivable A/c (Being Anita's promissory note endorsed to Manju)		$14,000$	$14,000$
Jan $29$	Bills Receivable A/c Dr To Kiran (Being promissory note from Kiran received)		$11,500$	$11,500$