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 transactions in the books of Rao and prepare Rao's account in the books of Reddy.

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Solution

In the Books of Rao
Journal Entries
Date Particulars LF Amt.(Dr) Amt.(Cr)
$2011$
Jan $1$ Reddy Dr
To Sales A/c
(Being goods sold to Reddy on credit)

$10, 000$ $10, 000$
Jan $1$ Cash A/c Dr
Bills Receivable A/c Dr
To Reddy
(Being half of the amount of credit sales and acceptance for remaining half amount received)
$5, 000$
$5, 000$
$10, 000$
Feb $3$ Cash A/c Dr
To Bills Receivable A/c
(Being cash received on due date)
$5, 000$ $5, 000$
In the Books of Reddy
Rao's Account
Date Particulars JF Amt.(Rs.) Date Particulars JF Amt.(Rs.)
$2011$ $2011$
Jan $1$ To Cash A/c $5, 000$ Jan $1$ By Purchase A/c $10, 000$
Jan $1$ To Bills Receivable A/c $5, 000$
$10, 000$ $10, 000$

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Date	Particulars	LF	Amt.(Dr)	Amt.(Cr)
$2011$
Jan $1$	Reddy Dr To Sales A/c (Being goods sold to Reddy on credit)		$10, 000$	$10, 000$
Jan $1$	Cash A/c Dr Bills Receivable A/c Dr To Reddy (Being half of the amount of credit sales and acceptance for remaining half amount received)		$5, 000$ $5, 000$	$10, 000$
Feb $3$	Cash A/c Dr To Bills Receivable A/c (Being cash received on due date)		$5, 000$	$5, 000$

Date	Particulars	JF	Amt.(Rs.)	Date	Particulars	JF	Amt.(Rs.)
$2011$				$2011$
Jan $1$	To Cash A/c		$5, 000$	Jan $1$	By Purchase A/c		$10, 000$
Jan $1$	To Bills Receivable A/c		$5, 000$
			$10, 000$				$10, 000$