Question

On 1st January, 2019, Ajay sold goods to Bhushan for ₹ 50,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay. Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.

Answer 1

Books of Ajay Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 01	Bhushan	Dr.		50,000
	To Sales A/c				50,000
	(Goods sold to Bhushan)
Jan. 01	Bills Receivable A/c	Dr.		50,000
	To Bhushan				50,000
	(Bhushan accepted the bill)
Mar. 04	Cash A/c	Dr.		50,000
	To Bills Receivable A/c				50,000
	(Bill honoured on maturity)

Books of Bhushan Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 01	Purchases A/c	Dr.		50,000
	To Ajay				50,000
	(Goods purchased from Ajay)
Jan. 01	Ajay	Dr.		50,000
	To Bills Payable A/c				50,000
	(Bill drawn by Ajay, accepted)
Mar. 04	Bills Payable A/c	Dr.		50,000
	To Cash A/c				50,000
	(Bill honoured on maturity)