Question

Vimal purchased goods ₹ 25,000 from Kamal on Jan. 15, 2017 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill.
Record the necessary journal entries in the books of Kamal and Vimal when :
(i) The bill was retained by Kamal till the date of its maturity.
(ii) The bill was immediately discounted by Kamal with is bank @ 6% p.a.
(iii) The bill was endorsed by Kamal in favour of his creditor Sharad.
(iv) Five days before its maturity the bill was sent by Kamal to his bank for collection.

Answer 1

Books of Kamal Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 15	Vimal	Dr.		25,000
	To Sales A/c				25,000
	(Goods sold to Vimal)
Jan. 15	Bills Receivable A/c	Dr.		25,000
	To Vimal				25,000
	(Vimal accepted the bill)
	Case-(i): Bill retained till maturity
Mar. 18	Vimal	Dr.		25,000
	To Bills Receivable A/c				25,000
	(Bill dishonoured on due date)
	Case-(ii): Bill discounted with bank @ 6% p.a.
Jan. 15	Bank A/c	Dr.		24,750
	Discounting Charges A/c	Dr.		250
	To Bills Receivable A/c				25,000
	(Bill discounted with bank @ 6% p.a. for 2 months)
Mar. 18	Vimal	Dr.		25,000
	To Bank A/c				25,000
	(Bill dishonoured on due date)
	Case-(iii): Bill endorsed in favour of Sharad
Jan. 15	Sharad	Dr.		25,000
	To Bills Receivable A/c				25,000
	(Bill endorsed in favour of Sharad)
Mar. 18	Vimal	Dr.		25,000
	To Sharad				25,000
	(Bill dishonoured on due date)
	Case-(iv): Bill sent to bank for collection
Mar. 13	Bills Sent for Collection A/c	Dr.		25,000
	To Bills Receivable A/c				25,000
	(Bill sent to bank for collection)
Mar. 18	Vimal	Dr.		25,000
	To Bills Sent for Collection A/c				25,000
	(Bill dishonoured on due date)

Books of Vimal Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 15	Purchases A/c	Dr.		25,000
	To Kamal				25,000
	(Goods purchased from Kamal)
	Same entry will be passed in all the four cases
Mar. 18	Bills Payable A/c	Dr.		25,000
	To Kamal				25,000
	(Bill dishonoured on due date)