On 1st January, 2017, Ajay sold goods to Bhushan for ₹ 10,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay, Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.

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Solution

Books of Ajay
Journal

Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)

2017

Jan. 01
Bhushan Dr.
10,000

To Sales A/c

10,000

(Goods sold to Bhushan)

Jan. 01
Bills Receivable A/c Dr.
10,000

To Bhushan

10,000

(Bhushan accepted the bill)

Mar. 04
Cash A/c Dr.
10,000

To Bills Receivable A/c

10,000

(Bill honoured on maturity)

Books of Bhushan
Journal

Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)

2017

Jan. 01
Purchases A/c Dr.
10,000

To Ajay

10,000

(Goods purchased from Ajay)

Jan. 01
Ajay Dr.
10,000

To Bills Payable A/c

10,000

(Bill drawn by Ajay, accepted)

Mar. 04
Bills Payable A/c Dr.
10,000

To Cash A/c

10,000

(Bill honoured on maturity)

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Books of Ajay Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 01	Bhushan	Dr.		10,000
	To Sales A/c				10,000
	(Goods sold to Bhushan)

Jan. 01	Bills Receivable A/c	Dr.		10,000
	To Bhushan				10,000
	(Bhushan accepted the bill)

Mar. 04	Cash A/c	Dr.		10,000
	To Bills Receivable A/c				10,000
	(Bill honoured on maturity)

Books of Bhushan Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 01	Purchases A/c	Dr.		10,000
	To Ajay				10,000
	(Goods purchased from Ajay)

Jan. 01	Ajay	Dr.		10,000
	To Bills Payable A/c				10,000
	(Bill drawn by Ajay, accepted)

Mar. 04	Bills Payable A/c	Dr.		10,000
	To Cash A/c				10,000
	(Bill honoured on maturity)