Question

On 1st January, 2017, A draws a bill on B for ₹ 1,000 payable after 3 months. Immediately after its acceptance, A sends the bill to his bank for collection. On the due date, the bill was dishonoured. Record the transactions in the Journals of A and B.

Answer 1

Books of A
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan.01	Bills Receivable A/c	Dr.		1,000
	To B				1,000
	(B’s acceptance was received)
Jan.01	Bills Sent for Collection A/c	Dr.		1,000
	To Bills Receivable A/c				1,000
	(B’s acceptance sent to bank for Collection)
April 04	B	Dr.		1,000
	To Bills Sent for Collection A/c				1,000
	(B’s acceptance became dishonoured)

Books of B
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan.01	A	Dr.		1,000
	To Bills Payable A/c				1,000
	(Bill drawn by A was accepted)
April 04	Bills Payable A/c	Dr.		1,000
	To A				1,000
	(Bills Payable to A became dishonoured)