Question

On 10th January, 2017, A sells goods to B for ₹ 12,000. On that date, B accepted a bill drawn upon him by A at two months for ₹ 12,000. A retains the bill till due date and on due date sends the bill to the Banker for collection. In due course, A receives the information from the Bank that the bill has been duly met.
Pass Journal Entries in the books of A and B.

Answer 1

Books of A Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 10	B	Dr.		12,000
	To Sales A/c				12,000
	(Goods sold to B)
Jan. 10	Bills Receivable A/c	Dr.		12,000
	To B				12,000
	(B accepted the bill)
Mar. 13	Bill Sent for Collection A/c	Dr.		12,000
	To Bills Receivable A/c				12,000
	(Bills sent to bank for collection)
Mar. 13	Bank A/c	Dr.		12,000
	To Bills Sent for Collection A/c				12,000
	(Bill honoured on maturity)

Books of B Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 10	Purchases A/c	Dr.		12,000
	To A				12,000
	(Goods purchased from A)
Jan .10	A	Dr.		12,000
	To Bills Payable A/c				12,000
	(Bill drawn by A, accepted)
Mar. 13	Bills Payable A/c	Dr.		12,000
	To Cash A/c				12,000
	(Bill honoured on maturity)