Question

Leena sold goods to Meena on 1st March, 2009 for ₹ 68,000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid ₹ 55 as noting charges.
The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
Journalise the above in the books of Leena and Meena.

Answer 1

Books of Leena
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2009
Mar.01	Meena	Dr.		68,000
	To Sales A/c				68,000
	(Goods were sold to Meena)
Mar.01	Bills Receivable A/c (Bill no. 1)	Dr.		34,000
	Bills Receivable A/c (Bill no. 2)	Dr.		34,000
	To Meena				68,000
	(Meena’s acceptance were received)
Mar.01	Bank A/c	Dr.		32,980
	Discount Charges A/c	Dr.		1,020
	To Bills Receivable A/c (Bill no. 01)				34,000
	(Bill no. 1 discount with bank at 12% p.a. for 3 months)
	Working Note: Interest = 34,000 × 12% × 3/12
May 04	Cash A/c	Dr.		33,830
	Rebate A/c	Dr.		170
	To Bills Receivable A/c (Bill no. 2)				34,000
	(Bill no. 2 retired before one month under a rebate at 6% p.a.)
	Working Note: Rebate = 34,000 × 6% × 1/12
June 04	Meena	Dr.		34,055
	To Bank A/c				34,055
	(Bill no. 1 which was discounted with bank proved dishonoured)

Books of Meena
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2009
Mar.01	Purchases A/c	Dr.		68,000
	To Leena				68,000
	(Goods were bought from Leena)
Mar.01	Leena	Dr.		68,000
	To Bills Payable A/c (Bill no. 1)				34,000
	To Bills Payable A/c (Bill no. 2)				34,000
	(Bills drawn by Leena were accepted)
May 04	Bills Payable A/c (Bill no. 2)	Dr.		34,000
	To Cash A/c				33,830
	To Rebate A/c				170
	(Bill no. 2 discharge one month before due and received)
June 04	Bills Payable A/c (Bill no. 1)	Dr.		34,000
	Noting Charges A/c	Dr.		55
	To Leena				34,055
	(Bill no. 2 was dishonoured due to non payment)