Question

On Jan. 15, 2017, Kusum sold goods for ₹ 30,000 to Pushpa and drew upon her three bills of exchanges of ₹ 10,000 each payable after one month, two months and three months respectively. The first bill was retained by Kusum till its maturity. The second bill was endorsed by her in favour of her creditor Khushboo and the third bill was discounted by her immediately @ 6% p.a. All the bills were met by Pushpa. Journalise the above transactions in the books of Kusum and Pushpa.

Answer 1

Books of Kusum Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 15	Pushpa	Dr.		30,000
	To Sales A/c				30,000
	(Goods sold to Pushpa)
Jan. 15	Bills Receivable A/c (1)	Dr.		10,000
	Bills Receivable A/c (2)	Dr.		10,000
	Bills Receivable A/c (3)	Dr.		10,000
	To Pushpa				30,000
	(Pushpa accepted the bills)
Jan. 15	Khushboo	Dr.		10,000
	To Bills Receivable A/c (2)				10,000
	(Bill endorsed in favour of Khushboo)
Jan. 15	Bank A/c	Dr.		9,850
	Discounting Charges A/c	Dr.		150
	To Bills Receivable A/c (3)				10,000
	(Bill discounted with the bank @ 6% p.a. for 3 months)
Feb. 18	Cash A/c	Dr.		10,000
	To Bills Receivable A/c (1)				10,000
	(Bill honoured on maturity)

Books of Pushpa Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 15	Purchases A/c	Dr.		30,000
	To Kusum				30,000
	(Goods purchased from Kusum)
Jan. 15	Kusum	Dr.		30,000
	To Bills Payable A/c (1)				10,000
	To Bills Payable A/c (2)				10,000
	To Bills Payable A/c (3)				10,000
	(Bills drawn by Kusum, accepted)
Feb. 18	Bills Payable A/c	Dr.		10,000
	To Cash A/c				10,000
	(Bill (1) honoured on maturity)
Mar. 18	Bills Payable A/c (2)	Dr.		10,000
	To Cash A/c				10,000
	(Bill (2) honoured on maturity)
Apr. 18	Bills Payable A/c (3)	Dr.		10,000
	To Cash A/c				10,000
	(Bill (3) honoured on maturity)

Working Note:

Calculation of Discounting Charges