Question

On Jan. 01, 2017 Harsh accepted a month bill for Rs 10,000 drawn on him by tanu for latter’s benefit. Tanu discounted the bill on same day @ 8% p.a. On the due date tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance. Record the journal entries in the Books of Tanu and Harsh.

Answer 1

Books of Tanu Journal
Date		Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan.01	Bills Receivable A/c			Dr.		10,000
		To Harsh					10,000
	(Harsh's acceptance received)
Jan.01	Bank A/c			Dr.		9,933
	Discount A/c					67
		To Bills Receivable A/c					10,000
	(Harsh's acceptance discounted at 8% p.a. for one month)
Feb.04	Harsha			Dr.		10,000
		To Bank A/c					10,000
	(Harsh's account settled by paying amount due to Harsh through cheque)

Books of Harsh Journal
Date				Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Jan.01	Tanu				Dr.		10,000
			To Bills Payable A/c					10,000
	(Bill drawn by Tanu accepted)
Feb.04	Bank A/c				Dr.		10,000
		To Tanu						10,000
	(Cheque received from Tanu)
Feb.04	Bills Payable A/c				Dr.		10,000
		To Bank A/c						10,000
	(Bill drawn by Tanu met on due date)