Question

On 15th June, 2019, X sold to Y goods to the value of ₹ 15,000 drawing upon the latter two bills, one for ₹ 10,000 payable 2 months after date and other for ₹ 5,000 payable 3 months after date, X discounted the first bill with his bank at 6% p.a. and endorsed the second bill in favour of his creditor, Z. The first bill was met on maturity but the second was dishonoured. Z paid ₹ 50 as noting charges. On 1st October, Y cleared his account to X by paying ₹ 5,100 which included ₹ 50 as interest.
Record the necessary Journal entries in the books of both X and Y.

Answer 1

Books of X
Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
June 15	Y	Dr.		15,000
	To Sales A/c				15,000
	(Goods were sold to Y)
June 15	Bills Receivable A/c (Bill no 1)	Dr.		10,000
	Bills Receivable A/c (Bill no 2)	Dr.		5,000
	To Y				15,000
	(Y’s acceptance was received)
June 15	Bank A/c	Dr.		9,900
	Discount Charges A/c	Dr.		100
	To Bills Receivable A/c (Bill no 1)				10,000
	(Bill no 1 which was issued for two months discounted at 6% p.a. for two months)
June 15	Z	Dr.		5,000
	To Bills Receivable A/c (Bill no 2)				5,000
	(Y’s acceptance Bill no 2 endorsed in favour of Z)
Sep.18	Y	Dr.		5,050
	To Z				5,050
	(Y’s acceptance which had endorsed in favour Z dishonoured)
Oct.01	Y	Dr.		50
	To Interest A/c				50
	(Interest due from Y)
	Cash A/c	Dr.		5,100
	To Y				5,100
	(Amount due from Y received)

Books of Y
Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
June 15	Purchases A/c	Dr.		15,000
	To X				15,000
	(Goods were bought from X)
June 15	X	Dr.		15,000
	To Bills Payable A/c (Bill no 1)				10,000
	To Bills Payable A/c (Bill no 2)				5,000
	(Bills drawn by X were accepted)
Aug.18	Bills Payable A/c (Bill no 1)	Dr.		10,000
	To Bank A/c				10,000
	(Payment made for bill on maturity)
Sep.18	Bills Payable A/c (Bill no 2)	Dr.		5,000
	Noting Charges A/c	Dr.		50
	To X				5,050
	(Bill dishonoured)
Oct.01	Interest A/c	Dr.		50
	To X				50
	(Interest due to X)
Oct.01	X	Dr.		5,100
	To Cash A/c				5,100
	(Payment made to X)