Question

On Jan 01, 2016 Rao sold goods Rs 10,000 to Reddy. Half of the payment was made immediately and for the remaining half Rao drew a bill of exchange upon Reddy payable after 30 days. Reddy accepted the bill and returned it to Rao. On the due date Rao presented the bill to Reddy and received the payment Journalise the above transactions in the books Rao and prepare of Rao’s account in the books of Reddy.

Answer 1

Books of Rao
Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2016
Jan.01	Reddy		Dr.		10,000
		To Sales A/c				10,000
	(Goods sold to Reddy)
Jan.01	Cash A/c		Dr.		5,000
		To Reddy				5,000
	(Cash received from Reddy)
Jan.01	Bills Receivable A/c		Dr.		5,000
		To Reddy				5,000
	(Bill received for 30 days accepted by Reddy)
Feb.03	Cash A/c		Dr.		5,000
		To Bills Receivable A/c				5,000
	(Reddy's acceptance met on due date)

Books of Reddy
Rao'sAccount
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
Jan.01	Cash		5,000	2011
Jan.01	Bills Receivable		5,000	Jan.01	Purchases		10,000
			10,000				10,000