On 1st January, 2018, Mr. X sold goods to Mr. Y for ₹45,000 plus CGST and SGST @ 9% each on credit. Mr. Y paid the amount of GST immediately in cash. Mr. X drew 3 bills on him: first bill for ₹10,000 for 1 month, second bill for ₹15,000 for 2 months and third bill for ₹20,000 for 3 months. Mr. Y accepted and returned all the bills to Mr. X.

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Solution

Journal

in the books of X (Drawer)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2018

Jan 01
Y’s A/c
Dr.

53,100

To Sales A/c

45,000

To Output CGST A/c

4,050

To Output SGST A/c

4,050

(Goods sold to Y)

Jan 01
Cash A/c
Dr.

8,100

Bills Receivable I A/c
Dr.

10,000

Bills Receivable II A/c

15,000

Bills Receivable III A/c

20,000

To Y’s A/c

53,100

(Cash and bills received)

Jan 03
Z’s A/c
Dr.

15,000

To Bills Receivable II A/c

15,000

(Bill endorsed to Z)

Jan 04
Bill Sent for Collection A/c
Dr.

20,000

To Bill Receivable III A/c

20,000

(Bill sent to bank for collection)

Feb 04
Y’s A/c
Dr.

11,000

To Bills Receivable A/c

10,000

To Cash A/c

1,000

(Bill Receivable I dishonoured)

Mar 04
Y’s A/c
Dr.

16,500

To Z’s A/c

16,500

(Bill Receivable II dishonoured)

Apr 04
Y’s A/c
Dr.

22,000

To Bill Sent for Collection A/c

20,000

To Cash A/c

2,000

(Bill Receivable III dishonoured)

Journal

in the books of Y (Drawee)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2018

Jan 01
Purchases A/c
Dr.

45,000

Input CGST A/c
Dr.

4,050

Input SGST A/c
Dr.

4,050

To X’s A/c

53,100

(Goods purchased from X)

Jan 01
X’s A/c
Dr.

53,100

To Bills Payable I A/c
Dr.

10,000

To Bills Payable II A/c

15,000

To Bills Payable III A/c

20,000

To Cash A/c

8,100

(Cash paid and bills accepted)

Feb 04
Bills Payable A/c
Dr.

10,000

Noting Charges A/c
Dr.

1,000

To Cash A/c

11,000

(Bill Payable I dishonoured)

Mar 04
Bills Payable A/c
Dr.

15,000

Noting Charges A/c
Dr.

1,500

To Cash A/c

16,500

(Bill Payable II dishonoured)

Apr 04
Bills Payable A/c
Dr.

20,000

Noting Charges A/c
Dr.

2,000

To Cash A/c

22,000

(Bill Payable III dishonoured)

Journal

in the books of Z (Endorsee)

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2018

Jan 03
Bills Receivable A/c
Dr.

15,000

To X’s A/c

15,000

(Bill received from X)

Mar 06
X’s A/c
Dr.

16,500

To Bills Receivable A/c

15,000

To Cash A/c

1,500

(Bill dishonoured)

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Journal in the books of X (Drawer)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Jan 01	Y’s A/c	Dr.		53,100
	To Sales A/c				45,000
	To Output CGST A/c				4,050
	To Output SGST A/c				4,050
	(Goods sold to Y)

Jan 01	Cash A/c	Dr.		8,100
	Bills Receivable I A/c	Dr.		10,000
	Bills Receivable II A/c			15,000
	Bills Receivable III A/c			20,000
	To Y’s A/c				53,100
	(Cash and bills received)

Jan 03	Z’s A/c	Dr.		15,000
	To Bills Receivable II A/c				15,000
	(Bill endorsed to Z)

Jan 04	Bill Sent for Collection A/c	Dr.		20,000
	To Bill Receivable III A/c				20,000
	(Bill sent to bank for collection)

Feb 04	Y’s A/c	Dr.		11,000
	To Bills Receivable A/c				10,000
	To Cash A/c				1,000
	(Bill Receivable I dishonoured)

Mar 04	Y’s A/c	Dr.		16,500
	To Z’s A/c				16,500
	(Bill Receivable II dishonoured)

Apr 04	Y’s A/c	Dr.		22,000
	To Bill Sent for Collection A/c				20,000
	To Cash A/c				2,000
	(Bill Receivable III dishonoured)

Journal in the books of Y (Drawee)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Jan 01	Purchases A/c	Dr.		45,000
	Input CGST A/c	Dr.		4,050
	Input SGST A/c	Dr.		4,050
	To X’s A/c				53,100
	(Goods purchased from X)

Jan 01	X’s A/c	Dr.		53,100
	To Bills Payable I A/c	Dr.			10,000
	To Bills Payable II A/c				15,000
	To Bills Payable III A/c				20,000
	To Cash A/c				8,100
	(Cash paid and bills accepted)

Feb 04	Bills Payable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		1,000
	To Cash A/c				11,000
	(Bill Payable I dishonoured)

Mar 04	Bills Payable A/c	Dr.		15,000
	Noting Charges A/c	Dr.		1,500
	To Cash A/c				16,500
	(Bill Payable II dishonoured)

Apr 04	Bills Payable A/c	Dr.		20,000
	Noting Charges A/c	Dr.		2,000
	To Cash A/c				22,000
	(Bill Payable III dishonoured)

Journal in the books of Z (Endorsee)
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Jan 03	Bills Receivable A/c	Dr.		15,000
	To X’s A/c				15,000
	(Bill received from X)

Mar 06	X’s A/c	Dr.		16,500
	To Bills Receivable A/c				15,000
	To Cash A/c				1,500
	(Bill dishonoured)