Question

PRACTICAL PROBLEMS

Vasanti sold goods on credit of Rs 8,500 to Aruna on 14^th July 2009. On the same date Vasanti drew two bills for Rs 5,000 and 3,500 for 2 and 3 months period respectively. Aruna accepted and return immediately. On 21^st July, 2009 Vasanti deposited 3 months acceptance to her bank for collections.

On the due date of the respective bills Aruna honoured 2 months acceptance but dishonoured the second for which Vasanti paid nothing chargers Rs 60 and her bank debited 50 for bank chargers

Pass the journal entries in the books of Vasanti and Aruna.

Answer 1

Books of Vasanti
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2009
Jul.14	Aruna	Dr.		8,500
	To Sales A/c				8,500
	(Goods sold to Aruna on credit)
Jul.14	Bills Receivable A/c (Bill no 1)			5,000
	Bills Receivable A/c (Bill no 2)			3,500
	To Aruna				8,500
	(Bill accepted by Aruna)
Jul.21	Bill Sent for Collection A/c	Dr.		3,500
	To Bills Receivable A/c (Bill no 2)				3,500
	(Bill sent to bank for collection)
Sept.17	Bank A/c	Dr.		5,000
	To Bill Receivable A/c (Bill no 1)				5,000
	(Bill honoured on maturity)
Oct.17	Aruna	Dr.		3,560
	To Bill Sent for Collection				3,500
	To Bank A/c				60
	(Bill sent for collection dishonoured and noting charges of Rs 60 paid by Vasanti)
Oct.17	Bank charges A/c	Dr.		50
	To Bank A/c				50
	(Bank charges paid)

Books of Arna
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2009
Jul.14	Purchases A/c	Dr.		8,500
	To Vasanti				8,500
	(Goods purchased on credit from Vasnti)
Jul.14	Vasanti	Dr.		8,500
	To Bills Payable A/c (Bill no 1)				5,000
	To Bills Payable A/c (Bill no 1)				3,500
	(Bills accepted by Aruna)
Sept.17	Cash/Bank A/c	Dr.		5,000
	To Bills Payable A/c (Bill no 1)				5,000
	(Amount paid on maturity)
Oct.18	Bills Payable A/c (Bill no 1)	Dr.		3,500
	Noting Charges A/c	Dr.		60
	To Vasanti				3,560
	(Bill dishonoured on maturity)