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Question

On 1st January, 2019, A draws a bill on B for ₹ 1,000 payable after 3 months. Immediately after its acceptance, A sends the bill to his bank for collection. On the due date, the bill was dishonoured. Record the transactions in the Journals of A and B.


Solution

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.01

Bills Sent for Collection A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance sent to bank for Collection)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

1,000

 

 

To Bills Sent for Collection A/c

 

 

1,000

 

(B’s acceptance became dishonoured)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

Jan.01

A

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,000

 

 

To A

 

 

1,000

 

(Bills Payable to A became dishonoured)

 

 

 

 

 

 

 

 

 


Accountancy
T.S. Grewal (2019)
All

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