Question

On 1st March, 2018, R accepted a Bill of Exchange of ₹ 20,000 from S payable 3 months after date in full settlement of his dues. On the same day S endorsed the Bill of Exchanges to T together with a cheque for ₹ 5,000 in settlement of his debt to the latter. On 2nd March, 2018, T discounted the Bill of Exchange @ 6% p.a. with his bankers. On maturity the Bill of Exchange was dishonoured.
Journalise the transactions in the books of R and T.

Answer 1

Books of R
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
Mar.01	S	Dr.		20,000
	To Bills Payable A/c				20,000
	(Bill drawn by S was accepted)
June 04	Bills Payable A/c	Dr.		20,000
	To S				20,000
	(Bills Payable dishonoured)

Books of T
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
Mar.01	Bank A/c	Dr.		5,000
	Bills Receivable A/c	Dr.		20,000
	To S				25,000
	(Bill Receivable and cheque received from S)
Mar.02	Bank A/c	Dr.		19,700
	Discount Charges A/c	Dr.		300
	To Bills Receivable A/c				20,000
	(R’s acceptance discounted with bank at 6% p.a. for 3 months)
June 04	S	Dr.		20,000
	To Bank A/c				20,000
	(Bill received from S was dishonoured)