Question

Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

Answer 1

Books of Mohan Singh
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bills Receivable A/c	Dr.		1,000
	To Jagat				1,000
	(Jagat acceptance was received)
	Bills Sent for Collection A/c	Dr.		1,000
	To Bills Receivable A/c				1,000
	(Bill Receivable sent to bank for collection)
	Bank A/c	Dr.		1,000
	To Bills Sent for Collection A/c				1,000
	(Payment of bill received by bank)

Books of Jagat
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Mohan Singh	Dr.		1,000
	To Bills Payable A/c				1,000
	(Bills drawn by Mohan Singh was accepted)
	Bills Payable A/c	Dr.		1,000
	To Bank A/c				1,000
	(Payment was made to meet the bill)