Question

Kapil purchased goods for Rs 21,000 from Gaurav on 1.2.2017 and accepted a bill of exchange drawn by Gaurav for the same amount. The bill was payable after one month. On 25.2.2017 Gaurav sent the bill to his bank for collection. The bill was duly presented by the bank. Kapil dishonoured the bill and the bank paid Rs 100 as noting charges. Record the necessary journal entries for the above transactions in the books of Kapil and Gourav.

Answer 1

Books of Gaurav Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Feb.01	Kapil		Dr.		21,000
		To Sales A/c				21,000
	(Goods sold to Kapil)
Feb.01	Bills Receivable A/c		Dr.		21,000
		To Kapil				21,000
	(Kapil's acceptance received)
Feb.25	Bills Sent for Collection A/c		Dr.		21,000
		To Bills Receivable A/c				21,000
	(Bill Receivable sent to bank for collection)
Mar.04	Kapil		Dr.		21,100
		To Bill Sent for Collection A/c				21,000
		To Bank A/c				100
	(Kapil's acceptance dishonoured)

Books of Kapil Journal
Date		Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
2017
Feb.01	Purchases A/c			Dr.		21,000
			To Gaurav				21,000
	(Goods bought from Gaurav)
Feb.01	Gaurav			Dr.		21,000
			To Bills Payable A/c				21,000
	(Bill drawn by Gaurav payable after one month accepted)
Mar.04	Bills Payable A/c			Dr.		21,000
	Noting Charges A/c			Dr.		100
			To Gaurav				21,100
	(Bill drawn by Kapil dishonoured)