Question

On 1st January, 2018, Mr. X sold goods to Mr. Y for ₹ 4,500 on credit and drew 3 bills on him first bill for ₹ 1,000 for 1 month, second bill for ₹ 1,500 for 2 months and third bill for ₹ 2,000 for 3 months. Mr. Y accepted and returned all the bills to Mr. X.
The first bill was retained by Mr. X till the date of maturity. Second bill was endorsed to his creditor Mr. Z on 3rd January, 2018 and third bill was sent to bank for collection on 4th January, 2017. On maturity all the bills were dishonoured and noting charges amount to ₹ 10, ₹ 15 and ₹ 20 respectively.
Give the Journal entries in the books of X, Y and Z.

Answer 1

Books of X
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
Jan.01	Y	Dr.		4,500
	To Sales A/c				4,500
	(Goods was sold to Y)
Jan.01	Bills Receivable A/c (Bill no 1)	Dr.		1,000
	Bills Receivable A/c (Bill no 2)	Dr.		1,500
	Bills Receivable A/c (Bill no 3)	Dr.		2,000
	To Y				4,500
	(Y’s acceptance was received)
Jan.03	Z	Dr.		1,500
	To Bills Receivable A/c (Bill no 2)				1,500
	(Bill Receivable endorsed in favour of Z)
Jan.04	Bills Sent for Collection A/c	Dr.		2,000
	To Bills Receivable A/c (Bill no 3)				2,000
	(Bill Sent to bank for Collection)
Feb.04	Y	Dr.		1,010
	To Bills Receivable A/c (Bill no 1)				1,000
	To Cash A/c				10
	(Bill dishonoured whose maturity period was 1 month)
Mar.04	Y	Dr.		1,515
	To Z				1,515
	(Bill endorsed to Z dishonoured)
April 04	Y	Dr.		2,020
	To Bill Sent for Collection A/c				2,000
	To Bank A/c				20
	(Bill which had sent to bank for collection, now dishonoured and bank paid noting charges)

Books of Y
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
Jan.01	Purchases A/c	Dr.		4,500
	To X				4,500
	(Goods were bought from X)
Jan.01	X	Dr.		4,500
	To Bills Payable A/c (Bill no 1)				1,000
	To Bills Payable A/c (Bill no 2)				1,500
	To Bills Payable A/c (Bill no 3)				2,000
	(Bill drawn by X was accepted)
Feb.04	Bills Payable A/c (Bill no 1)	Dr.		1,000
	Noting Charges A/c	Dr.		10
	To X				1,010
	(Bill Payable for 1 month was dishonoured)
Mar.04	Bills Payable A/c (Bill no 2)	Dr.		1,500
	Noting Charges A/c	Dr.		15
	To X				1,515
	(Bill no 2 was dishonoured)
April 04	Bills Payable A/c (Bill no 3)	Dr.		2,000
	Noting Charges A/c	Dr.		20
	To X				2,020
	(Bills no 3 dishonoured)

Books of Z
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
Jan.03	Bills Receivable A/c	Dr.		2,000
	To X				2,000
	(Bill Receivable received from X)
April 04	X	Dr.		1,515
	To Bills Receivable A/c				1,500
	To Bank A/c				15
	(Bill received from X was dishonoured)