PRACTICAL PROBLEMS

On 2^nd Jan., 2011 Kiran of Kanpur purchased goods from Kavita of Kedgaon for Rs 4,850 and gave his acceptance to after date bill for 60 days on 5^th Jan, 2011 for the same amount. On the same date Kavita of Kedgaon deposited the bill into bank for collection. On the due date Kiran honoured his acceptance.

You are required to pass journal entries in the books both the parties.

Open in App

Solution

Books of Kavita

Journal Entry

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

2011

Jan.02

Kiran

Dr.

4,850

To Sales A/c

4,850

(Goods sold on credit to Kiran)

Jan.05

Bills Receivable A/c

Dr.

4,850

To Kiran

4,850

(Bill accepted by Kiran)

Jan.05

Bill Sent for Collection A/c

Dr.

4,850

To Bills Receivable A/c

4,850

(Bills sent to bank for collection)

Mar.06

Bank A/c

Dr.

4,850

To Bill Sent for Collection A/c

4,850

(Bill Sent for Collection honoured on maturity)

Books of Kiran

Journal Entry

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

2011

Jan.02

Purchases A/c

Dr.

4,850

To Kavita

4,850

(Goods purchased on credit from Kavita)

Jan.05

Kavita

Dr.

4,850

To Bills Payable A/c

4,850

(Bill accepted)

Mar.06

Cash/Bank A/c

Dr.

4,850

To Bills Payable A/c

4,850

(Amount of bill paid on maturity date)

Suggest Corrections

Similar questions

PRACTICAL PROBLEMS

On 1^st August, 2012 Omprakash drew a bill of Rs 10,000 for 60 days after date on Sharadchandra. On 15^th August, 2012 Omprakash purchased goods from Hariprasad for Rs 12,000. On the same date Omprakash endorsed Sharadchandra’s bill in favour of Hariprasad and paid the balance by cheque at 1% cash discount. On the same date Hariprasad discounted the bill with his bank for Rs 9,500.

On the due date Sharadchandra honoured his acceptance presented by Hariprasad.

You are required to pass journal entries in the books of Omprakash, Sharadchandra and Hariprasad.

PRACTICAL PROBLEMS

On 5^th September, 2010 Prakash Patil accepted a bill of Rs 16,000 drawn by Chandu Chaudhari for 3 months. This bill was drawn for amount which Prakash Patil owed to Chandu Chaudhari. On same date Chandu Chaudhari purchased goods from Magan Mahajan for Rs 20,000 for this Chandu Chaudhari endorsed Prakash Patil’s acceptance in favour of Magan Mahajan and accepted 2 months bill for the balance due. On 5^th October, 2010 Magan Mahajan discounted both the bill with his bank @ 12% p.a.

On the due date Prakash Patil’s honoured his acceptance while Chandu Chaudhari unable to meet the payment for his acceptance. Magan Mahajan’s bank paid noting charges Rs 100.

Pass Journal entries in the books of Magan Mahajan and also prepare Prakash Patil’s and Magan Mahajan ledger account in the books of Chandu Chaudhari.

Q. Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

PRACTICAL PROBLEMS

On 1^st April, 2011 Umakant draws a bill for Rs 25,000 on Laxmikant for 4 months period. The bill is accepted and returned to Umakant. On the same date Umakant discounted the bill with his bank @ 12% p.a.

Before due date Laxmikant finds himself unable the bill, hence required Umakant to renew the bill for further period of 2 months. Umakant agreed and he took the bill back from bank and received new acceptance for Rs 26,000 including interest. This new bill is duly honoured by Laxmikant on due date.

Write Journal of Umakant and Laxmikant for the above bill transactions.

Q. On January

1

2011

, Harsh accepted a month bill for Rs.

10, 000

drawn on him by tanu for latter's benefit. Tanu discounted the bill on same day at the rate of

8 %

per annum. On the due date Tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance.
Record the Journal entries in the books of Tanu and Harsh.

Join BYJU'S Learning Program

Books of Kavita
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2011
Jan.02	Kiran	Dr.		4,850
	To Sales A/c				4,850
	(Goods sold on credit to Kiran)

Jan.05	Bills Receivable A/c	Dr.		4,850
	To Kiran				4,850
	(Bill accepted by Kiran)

Jan.05	Bill Sent for Collection A/c	Dr.		4,850
	To Bills Receivable A/c				4,850
	(Bills sent to bank for collection)

Mar.06	Bank A/c	Dr.		4,850
	To Bill Sent for Collection A/c				4,850
	(Bill Sent for Collection honoured on maturity)

Books of Kiran
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2011
Jan.02	Purchases A/c	Dr.		4,850
	To Kavita				4,850
	(Goods purchased on credit from Kavita)

Jan.05	Kavita	Dr.		4,850
	To Bills Payable A/c				4,850
	(Bill accepted)

Mar.06	Cash/Bank A/c	Dr.		4,850
	To Bills Payable A/c				4,850
	(Amount of bill paid on maturity date)