Question

On 10th March, 2018, A draws on B a bill at 3 months for ₹20,000 which B accepts immediately and returns to A. The bill is honoured due date.
​Pass necessary Journal entries in the books of both the parties.

Answer 1

Journal in the books of A (Drawer)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Mar 10	Bills Receivable A/c	Dr.		20,000
	To B’s A/c				20,000
	(Bill received)
June 13	Cash A/c	Dr.		20,000
	To Bills Receivable A/c				20,000
	(Cash received against bill)

Journal in the books of B (Drawee)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Mar 10	A A/c	Dr.		20,000
	To Bills Payable A/c				20,000
	(Bill accepted)
June 13	Bills Payable A/c	Dr.		20,000
	To Cash A/c				20,000
	(Cash paid against bill)