Question

On 1st January, 2016, X drew a bill on Y for Rs. 15,000 payable after 3 months. Y accepted the bill and returned it to X. After 10 days, X endorsed the bill to his creditor Z. On the due date, the bill was dishonoured and Z paid Rs. 300 as noting charges. Record the transactions in the books of X, Y and Z.

Answer 1

In the Books of X
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Jan 1}& \text{Bills Receivable A/c}\text{Dr.}& & 15,000& \\ & \text{To Y's A/c}& & & 15,000\\ & \underset{–}{\text{(Acceptance received)}}& & & \\ \text{Jan 11}& \text{Z's A/c}\text{Dr.}& & 15,000& \\ & \text{To Bills Receivable A/c}& & & 15,000\\ & \underset{–}{\text{(Bill endorsed to Z)}}& & & \\ \text{Apr 4}& \text{Y's A/c}\text{Dr.}& & 15,300& \\ & \text{To Z's A/c}& & & 15,300\\ & \text{(Bill dishonoured and noting charges paid by Z)}& & & \end{array}$

In the Books of Y
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Jan 1}& \text{X's A/c}\text{Dr.}& & 15,000& \\ & \text{To Bills Payable A/c}& & & 15,000\\ & \underset{–}{\text{(Acceptance given)}}& & & \\ \text{Apr 4}& \text{Bills Payable A/c}\text{Dr.}& & 15,000& \\ & \text{Noting Charges A/c}\text{Dr.}& & 300& \\ & \text{To X's A/c}& & & 15,300\\ & \text{(Bill dishonoured and noting charges paid)}& & & \end{array}$

In the Books of Z
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Jan 11}& \text{Bills Receivable A/c}\text{Dr.}& & 15,000& \\ & \text{To X's A/c}& & & 15,000\\ & \underset{–}{\text{(Bill received from X)}}& & & \\ \text{Apr 4}& \text{X's A/c}\text{Dr.}& & 15,300& \\ & \text{To Bills Receivable A/c}& & & 15,000\\ & \text{To Cash A/c}& & & 300\\ & \text{(Bill dishonoured and noting charges paid)}& & & \end{array}$