Question

Leena sold goods to Meena on March 01, 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 May 04, 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 sold to Meena)
Mar. 01	Bills Receivable A/c (1)	Dr.		34,000
	Bills Receivable A/c (2)	Dr.		34,000
	To Meena				68,000
	(Meena accepted bills)
Mar. 01	Bank A/c	Dr.		32,980
	Discounting Charges A/c	Dr.		1,020
	To Bills Receivable A/c				34,000
	(Bill discounted with the bank @ 12% p.a. for 3 months)
May 04	Cash A/c	Dr.		33,830
	Rebate A/c	Dr.		170
	To Bills Receivable A/c (2)				34,000
	(Bill retired under the rebate of 6% p.a. for 1 month)
June 04	Meena	Dr.		34,055
	To Bank A/c				34,055
	(Bill dishonoured on due date and noting charges paid by bank)

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 purchased from Leena)
Mar. 01	Leena	Dr.		68,000
	To Bills Payable A/c (1)				34,000
	To Bills Payable A/c (2)				34,000
	(Bills drawn by Leena, accepted)
May 04	Bills Payable A/c (2)	Dr.		34,000
	To Cash A/c				33,830
	To Rebate A/c				170
	(Bill retired under the rebate of 6% p.a. for 1 month)
June 04	Bills Payable A/c (1)	Dr.		34,000
	Noting Charges A/c	Dr.		55
	To Leena				34,055
	(Bill dishonoured on due date and noting charges paid)

Working Notes:

WN1 Calculation of Discounting Charges

$\mathrm{Discounting}\mathrm{Charges}=34,000\times \frac{12}{100}\times \frac{3}{12}=\mathrm{Rs}1,020$

WN2 Calculation of amount of Rebate

$\mathrm{Amount}\mathrm{of}\mathrm{Rebate}=34,000\times \frac{6}{100}\times \frac{1}{12}=\mathrm{Rs}170$