wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

On January 1, 2011, 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 of Rao and prepare Rao's account in the books of Reddy.

Open in App
Solution

In the Books of Rao
Journal Entries

DateParticularsL.F.Amt. (Dr.)Amt. (Cr.)2011Jan 1ReddyDr.10,000 To Sales A/c10,000(Goods sold to Reddy on credit) –––––––––––––––––––––––––––––––––––––––––––––Jan 1Cash A/cDr.5,000Bills Receivable A/cDr.5,000 To Reddy's A/c10,000(Half of the amount of credit sales andacceptance for remaining half amountreceived) –––––––––––––––––––––––––––––––––––––––––––––Feb 3Cash A/cDr.5,000 To Bills Receivable A/c5,000(Cash received on due date)

In the Books of Reddy
Rao's Account

DateParticularsJ.F.Amt. (Rs)DateParticularsJ.F.Amt. (Rs)20112011Jan 1Cash A/c 5,000Jan 1Purchase A/c10,000Jan 1Bills 5,000Payable A/c¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯10,000–––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯10,000–––––


flag
Suggest Corrections
thumbs-up
25
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Goods and Services Tax
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon