Question

PRACTICAL PROBLEMS

Sudhatai sold goods to Chhayatai on credit for 4 months for Rs 10,000 on 7^th Sept., 2009. Chhayatai paid on her account of Rs 4,000 at 2% cash discount and accepted bill for the balance at 2 months. On the same date Sudhatai discounted with her bank at 12% p.a. on due date Chhayatai honoured her bill.

A. You required to write journal of Sudhatai.

B. Pass journal entries in the books of Sudhatai assuming that on due date the bill is dishonoured and Sudhatai’s bank paid noting chargers Rs 100.

Answer 1

Case-A

Books of Sudhatai
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2009
Sept.07	Chhayatai	Dr.		10,000
	To Sales A/c				10,000
	(Goods sold to Chhayatai)
Sept.07	Cash A/c	Dr.		3,920
	Discount A/c	Dr.		80
	To Chhayatai				4,000
	(Chhayatai paid Rs 4,000 on her account @ cash discount of 2%)
Sept.07	Bills Receivable A/c	Dr.		6,000
	To Chhayatai				6,000
	(Bill accepted by Chhayatai)
Sept.07	Bank A/c	Dr.		5,880
	Discount Charges A/c	Dr.		120
	To Bills Receivable A/c				6,000
	(Bill discounted with Bank at 12% per annum)

Case-B

Books of Sudhatai
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2009
Sept.07	Chhayatai	Dr.		10,000
	To Sales A/c				10,000
	(Goods sold to Chhayatai)
Sept.07	Bank A/c	Dr.		3,920
	Discount A/c	Dr.		80
	To Chhayatai				4,000
	(Chhayatai paid Rs 4,000 on her account @ cash discount of 2%)
Sept.07	Bills Receivable A/c	Dr.		6,000
	To Chhayatai				6,000
	(Bill accepted by Chhayatai)
Sept.07	Bank A/c	Dr.		5,880
	Discount Charges A/c	Dr.		120
	To Bills Receivable A/c				6,000
	(Bill discounted with Bank at 12% per annum)
Nov.10	Chhayatai	Dr.		6,100
	To Bank A/c				6,100
	(Discounted bill dishonoured and noting charges of Rs 100 paid)