On January $1$ , $2011$ , Shankar purchased goods from Parvati for Rs. $8, 000$ and immediately drew a promissory note in favour of Parvati payable after $3$ months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act, $1881$ . Since, Parvati was unware about the provision of the Law regarding the date of maturity of the bill she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to Parvati immediately.
Record the necessary Journal entries in the books of Parvati and Shankar.

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Solution

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

$8, 000$ $8, 000$
Jan $1$ Bills Receivable A/c Dr
To Shankar
(Being acceptance received)
$8, 000$ $8, 000$
Apr $5$ Cash A/c Dr
To Bills Receivable A/c
(Being Shankar met his acceptance on maturity)
$8, 000$ $8, 000$
In the Books of Shankar
Journal Entries
Date Particulars LF Amt.(Dr) Amt.(Cr)
$2011$
Jan $1$ Purchase A/c Dr
To Parvati
(Being goods purchased from Parvati on credit)
$8, 000$ $8, 000$
Jan $1$ Parvati Dr
To Bills Payable A/c
(Being acceptance given)
$8, 000$ $8, 000$
Apr $5$ Bills Payable A/c Dr
To Cash A/c
(Being bills payable paid on maturity)
$8, 000$ $8, 000$

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Date	Particulars	LF	Amt.(Dr)	Amt.(cr)
$2011$
Jan $1$	Shankar Dr To Sales A/c (Being goods sold to Shankar on credit)		$8, 000$	$8, 000$
Jan $1$	Bills Receivable A/c Dr To Shankar (Being acceptance received)		$8, 000$	$8, 000$
Apr $5$	Cash A/c Dr To Bills Receivable A/c (Being Shankar met his acceptance on maturity)		$8, 000$	$8, 000$