Question

On 1st January, 2106, P sold goods to Q for Rs. 1,00,000. On the same date P draws a bill on Q for Rs. 1,00,000 due after three months. Q accepted the bill and returned it to P. P retained the bill till the due date and Q meets the bill on due date. Pass journal entries and prepare Q's account in the books of P.

Answer 1

In the Books of P (Drawer)
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Jan 1}& \text{Q's A/c}\text{Dr.}& & 1,00,000& \\ & \text{To Sales A/c}& & & 1,00,000\\ & \underset{–}{\text{(Goods sold to Q on credit)}}& & & \\ \text{Jan 1}& \text{Bills Receivable A/c}\text{Dr.}& & 1,00,000& \\ & \text{To Q's A/c}& & & 1,00,000\\ & \underset{–}{\text{(Bill received from Q)}}& & & \\ \text{Apr 4}& \text{Bank A/c}\text{Dr.}& & 1,00,00& \\ & \text{To Bills Receivable A/c}& & & 1,00,000\\ & \text{(Amount of the bill received on due date)}& & & \end{array}$

Dr Q's Account Cr
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& L.F.& \text{Amt. (Rs.)}\\ 2016& & & & 2016& & & \\ \text{Jan 1}& \text{Sales A/c}& & 1,00,000& \text{Jan 1}& \text{Bills Receivable A/c}& & 1,00,000\end{array}$