Question

On 10th July, 2017, A sold goods to B for ₹ 35,000 plus IGST @ 18%. He drew on him a 3 months bill for ₹ 35,000 and received cheque for the balance amount. B accepted the bill. After 10 days, A endorsed the bill to his creditor C. On due date, acceptance is duly met. Show entries in the books of A, B, and C.

Answer 1

Books of A
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
July 10	B	Dr.		41,300
	To Sales A/c To Output IGST A/c				35,000 6,300
	(Goods sold to B plus IGST @ 12%)
July 10	Bills Receivable A/c Bank A/c	Dr. Dr.		35,000 6,300
	To B				41,300
	(B’s acceptance was received and IGST by cheque)
July 20	C	Dr.		35,000
	To Bills Receivable A/c				35,000
	(B’s acceptance endorsed in favour of C)

Books of B
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
July 10	Purchases A/c Input IGST A/c	Dr. Dr.		35,000 6,300
	To A				41,300
	(Goods bought from A plus IGST @ 12%)
July 10	A	Dr.		41,300
	To Bills Payable A/c To Bank A/c				35,000 6,300
	(Bill drawn by A accepted and paid IGST by cheque)
Oct 13	Bills Payable A/c	Dr.		35,000
	To Cash A/c				35,000
	(Payment of bill was made on its due date)

Books of C
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
July 20	Bills Receivable A/c	Dr.		35,000
	To A				35,000
	(Bill Receivable received from A)
Oct 13	Cash A/c	Dr.		35,000
	To Bills Receivable A/c				35,000
	(Amount of bill received on maturity)