Question

On 1st January, 2018, A drew a bill on B for ₹ 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.
Record the transactions in the books of A, B and C.

Answer 1

Books of A
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan. 01	Bills Receivable A/c	Dr.		10,000
	To B				10,000
	(B’s acceptance was received)
Jan. 11	C	Dr.		10,000
	To Bills Receivable A/c				10,000
	(B’s acceptance endorsed in favour of C)
April 04	B	Dr.		10,050
	To C				10,050
	(Bill endorsed in favour of C was dishonoured and C paid Rs 50 Noting Charges)

Books of B
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan. 01	A	Dr.		10,000
	To Bills Payable A/c				10,000
	(Bill drawn by A was accepted )
April 04	Bills Payable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		50
	To A				10,050
	(Bill Payable dishonoured)

Books of C
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan.11	Bills Receivable A/c	Dr.		10,000
	To A				10,000
	(Bill Receivable received from A)
April 04	A	Dr.		10,050
	To Bills Receivable A/c				10,000
	To Cash A/c				50
	(Bill Receivable received from A became dishonoured and Noting Charge paid Rs 50)