Question

On 1st January, 2019, X sold goods to Y for ₹ 25,000 and immediately received from Y ₹ 10,000 by cheque and drew a bill on Y at three months for the balance amount. Bill is accepted by Y. Bill was dishonoured on the due date and Y paid ₹ 150 as noting charges. Ten days later, Y pays the due amount to X. Pass the Journal entries in the books of both the parties.

Answer 1

In the books of X
Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 01	Y’s A/c	Dr.		25,000
	To Sales A/c				25,000
	(Being goods sold to Y on credit)
Jan. 01	Bills Receivable A/c	Dr.		15,000
	Bank A/c	Dr.		10,000
	To Y’s A/c				25,000
	(Being bill drawn on Y for three months and part payment received)
April 04	Y’s A/c	Dr.		15,000
	To Bills Receivable A/c				15,000
	(Being bill dishonoured by Y)
April 14	Bank A/c	Dr.		15,000
	To Y’s A/c				15,000
	(Being amount due paid by Y after 10 days)

In the books of Y
Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 01	Purchases A/c	Dr.		25,000
	To X’s A/c				25,000
	(Being goods purchased from X on credit)
Jan. 01	X’s A/c	Dr.		25,000
	To Bank A/c				10,000
	To Bills Payable A/c				15,000
	(Being acceptance given to X and part payment given)
April 04	Bills Payable A/c	Dr.		15,000
	Noting Charges A/c	Dr.		150
	To X’s A/c				15,000
	To Cash A/c				150
	(Being bill dishonoured and noting charges paid)
April 14	X’s A/c	Dr.		15,000
	To Bank A/c				15,000
	(Being due amount paid to X)