Question

On 1st January 2017, Amar sold goods to Akbar for ₹ 60,000. Akbar accepts two bills of ₹ 25,000 for 2 months, and ₹ 35,000 for 3 months.
The first bill was discounted from bank on 3rd January 2017 for ₹ 24,900 and 2nd bill endorsed to Anthony on 15th January 2017.
First bill was met on maturity but second bill got dishonoured and noting charges of ₹ 200 being paid. Amar charged ₹ 300 as Interest and drew another bill for the amount due for further 2 months. This bill was met on maturity.
Pass the necessary Journal Entries in the books of Amar, Akbar and Anthony.

Answer 1

Journal in the books of Amar (Drawer)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Jan 01	Akbar’s A/c	Dr.		60,000
	To Sales A/c				60,000
	(Goods sold to Akbar)
Jan 01	Bills Receivable I A/c	Dr.		25,000
	Bills Receivable II A/c			35,000
	To Parvati’s A/c				60,000
	(Bills received)
Jan 03	Bank A/c	Dr.		24,900
	Discounting Charges A/c	Dr.		100
	To Bills ReceivableI A/c				25,000
	(Bill discounted)
Jan 15	Anthony’s A/c	Dr.		35,000
	To Bills Receivable II A/c				35,000
	(Bill endorsed)
Apr 04	Akbar’s A/c	Dr.		35,200
	To Anthony’s A/c				35,200
	(Bill dishonoured)
Apr 04	Akbar’s A/c	Dr.		300
	To Interest A/c				300
	(Interest due)
Apr 04	Bill Receivable A/c	Dr.		35,500
	To Parvati’s A/c				35,500
	(New bill received from Akbar)
June 07	Cash A/c	Dr.		35,500
	To Bills Receivable A/c				35,500
	(New bill met on maturity)

Journal in the books of Akbar (Drawee)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Jan 01	Purchases A/c	Dr.		60,000
	To Amar’s A/c				60,000
	(Goods purchased from Amar)
Jan 01	Amar’s A/c	Dr.		60,000
	To Bills Payable I A/c	Dr.			25,000
	To Bills Payable II A/c				35,000
	(Bills accepted)
Mar 04	Bills Payable I A/c	Dr.		25,000
	To Cash A/c				25,000
	(Payment made for bill I)
Apr 04	Bills Payable II A/c	Dr.		35,000
	Noting Charges A/c	Dr.		200
	To Amar’s A/c				35,200
	(Bill Payable II dishonoured)
Apr 04	Interest A/c	Dr.		300
	To Amar’s A/c				300
	(Interest due)
Apr 04	Amar’s A/c	Dr.		35,500
	To Bills Payable A/c				35,500
	(New bill accepted)
June 07	Bills Payable A/c	Dr.		35,500
	To Cash A/c				35,500
	(Bill honoured)

Journal in the books of Anthony (Endorsee)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Jan 15	Bills Receivable A/c	Dr.		35,000
	To Amar’s A/c				35,000
	(Bill received from Amar)
Apr 04	Amar’s A/c	Dr.		35,200
	To Bills Receivable A/c				35,000
	To Cash A/c				200
	(Bill dishonoured)