Question

Ritesh and Naina were in need of funds temporarily. On August 01 2017 Ritesh drew upon Naina a bill for Rs 12,000 for 4 months. Naina accepted the bill and returned to Ritesh. Ritesh discounted the Bill @ 8% p.a. Half amount of the discounted bill remitted to Naina. On due date, Ritesh sent the required sum to Naina, who met the bill. Journalise the transaction in the books of both the parties.

Answer 1

Books of Ritesh Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Aug.01	Bills Receivable A/c		Dr.		12,000
		To Naina				12,000
	(Naina's acceptance received)
Aug.01	Bank A/c		Dr.		11,680
	Discount A/c		Dr.		320
		To Bills Receivable A/c				12,000
	(Naina's acceptance discounted at 8% p.a. with bank)
Aug.01	Naina		Dr.		6,000
		To Cash A/c				5,840
		To Discount A/c				160
	(Bill discounted with bank for four months at 8% p.a.)
Dec.04	Naina		Dr.		6,000
		To Cash A/c				6,000
	(Balance amount paid to Naina, in order to met the bill)

Books of Naina Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Aug.01	Ritesh		Dr.		12,000
		To Bills Payable A/c				12,000
	(Bill payable after four months accepted by Harish)
Aug.01	Cash A/c		Dr.		5,840
	Discount A/c		Dr.		160
		To Ritesh				6,000
	(Half amount of the discounted bill received from Ritesh)
Dec.04	Cash A/c		Dr.		6,000
		To Ritesh				6,000
	(Balance amount received from Ritesh)
Dec.04	Bills Payable A/c		Dr.		12,000
		To Bank A/c				12,000
	(Bill paid on maturity)