Question

Vinod sold goods to Darbara Singh for ₹ 1,000. He drew on the latter a bill for the amount payable 3 months after date.He discounted the bill with his bankers for ₹ 990. On maturity, the bill is duly met. Make the Journal entries in the books of Vinod and Darbara Singh.

Answer 1

Books of Vinod
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Darbara Singh	Dr.		1,000
	To Sales A/c				1,000
	(Goods sold to Darbara Singh)
	Bills Receivable A/c	Dr.		1,000
	To Darbara Singh				1,000
	(Bills accepted by Darbara Singh)
	Bank A/c	Dr.		990
	Discount Charges A/c	Dr.		10
	To Bills Receivable A/c				1,000
	(Darbara Singh’s acceptance discounted at 9% p.a. for 3 month)

Books of Darbara Singh
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Purchases A/c	Dr.		1,000
	To Vinod				1,000
	(Goods bought from Vinod )
	Vinod	Dr.		1,000
	To Bills Payable A/c				1,000
	(Bill drawn by Vinod accepted)
	Bills Payable A/c	Dr.		1,000
	To Bank A/c				1,000
	(Payment of bill was made on its due date.)