Question

On March 15, 2010 Ramesh sold goods for Rs. 8,000 to Deepak on credit. Deepak accepted a bill of exchange drawn upon him by Ramesh payable after three months. On April, 15 Ramesh endorsed the bill in favour of his creditor Poonam in full settlement of her debt of Rs. 8,250. On May 15, Poonam discounted the bill with her bank @ 12% p.a. On the due date Deepak met the bill. Record the necessary journal entries in the books of Ramesh.

Answer 1

$\begin{array}{cccc}\text{Journal of Ramesh}& & & \\ \text{2010}& & & \\ \text{Mar.15}& \text{Deepak A/c Dr.}& \text{8,000}& \\ & \text{To Sales A/c}& & \text{8,000}\\ & \text{(Sold goods to Deepak on credit)}& & \\ \text{Mar.15}& \text{Bills Receivable A/c Dr.}& \text{8,000}& \\ & \text{To Deepak A/c}& & \text{8,000}\\ & \text{Received Deepak's acceptance for three months}& & \\ \text{Apr.15}& \text{Poonam's A/c Dr.}& \text{8,250}& \\ & \text{To Bills Receivable A/c}& & \text{8,000}\\ & \text{To Discount Received A/c}& & \text{250}\end{array}$