Question

On 1st October, 2016, Y sells goods to Z for Rs. 24,000. On that date, Z accepted a bill drawn upon him by Y at 2 months for Rs. 24,000. Y decides to retain the bill till due date and sends the bill to the banker for collection. In due course, Y receives the information from the bank that the bill has been duly met. Pass journal entries in the books of Y and Z.

Answer 1

In the Books of Y
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Oct 1}& \text{Z's A/c}\text{Dr.}& & 24,000& \\ & \text{To Sales A/c}& & & 24,000\\ & \underset{–}{\text{(Goods sold to Z)}}& & & \\ \text{Oct 1}& \text{Bills Receivable A/c}\text{Dr.}& & 24,000& \\ & \text{To Z's A/c}& & & \\ & \underset{–}{\text{(Acceptance received)}}& & & 24,000\\ \text{Dec 4}& \text{Bill Sent for Collection A/c}\text{Dr.}& & 24,000& \\ & \text{To Bills Receivable A/c}& & & 24,000\\ & \underset{–}{\text{(Bill sent to bank for collection)}}& & & \\ \text{Dec 4}& \text{Bank A/c}\text{Dr.}& & 24,000& \\ & \text{To Bill Sent for Collection A/c}& & & 24,000\\ & \text{(Amount of bill collected by the bank)}& & & \end{array}$

In the Books of Z
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Oct 1}& \text{Purchases A/c}\text{Dr.}& & 24,000& \\ & \text{To Y's A/c}& & & 24,000\\ & \underset{–}{\text{(Goods purchased from Y)}}& & & \\ \text{Oct 1}& \text{Y's A/c}\text{Dr.}& & 24,000& \\ & \text{To Bills Payable A/c}& & & 24,000\\ & \underset{–}{\text{(Acceptance given)}}& & & \\ \text{Dec 4}& \text{Bills Payable A/c}\text{Dr.}& & 24,000& \\ & \text{To Bank A/c}& & & 24,000\\ & \text{(Bill met on due date)}& & & \end{array}$