Question

On Feb. 6, 2017 A sold goods for ₹ 1,00,000 to B. B paid 40% immediately on which A allowed a cash discount of ₹ 500. For the balance A drew a bill on B payable after 30 days. Due date of bill was a public holiday and the bill was met as per the provisions of Negotiable Instrument Act. Journalise the above transactions in the books of A and B.

Answer 1

Books of A Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Feb. 06	B	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Goods sold to B)
Feb. 06	Cash A/c	Dr.		39,500
	Discount Allowed A/c	Dr.		500
	Bills Receivable A/c	Dr.		60,000
	To B				1,00,000
	(B accepted the bill)
Mar. 10	Cash A/c	Dr.		60,000
	To Bills Receivable A/c				60,000
	(Bill honoured on maturity)

Books of B Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Feb. 06	Purchases A/c	Dr.		1,00,000
	To A				1,00,000
	(Goods purchased from A)
Feb. 06	A	Dr.		1,00,000
	To Cash A/c				39,500
	To Discount Received A/c				500
	To Bills Payable A/c				60,000
	(Bill drawn by A, accepted)
Mar. 10	Bills Payable A/c	Dr.		60,000
	To Cash A/c				60,000
	(Bill honoured on maturity)

Note: When due date falls on Public holiday (here March 11, 2017), then due date is preceding date i.e. March 10, 2017.