Vinod sold goods to Darbara Singh for ₹ 1,000 on 1st January, 2019. He drew on the latter a bill for the amount payable 3 months after date.He discounted the bill with his bank for ₹ 990 on 4th January, 2019. On maturity, the bill is duly met. Make the Journal entries in the books of Vinod and Darbara Singh.

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Solution

Books of Vinod

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

Jan.1

Darbara Singh

Dr.

1,000

To Sales A/c

1,000

(Goods sold to Darbara Singh)

Jan.1

Bills Receivable A/c

Dr.

1,000

To Darbara Singh

1,000

(Bills accepted by Darbara Singh)

Jan.4

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

(₹)

Credit

Amount

(₹)

2019

Jan.1

Purchases A/c

Dr.

1,000

To Vinod

1,000

(Goods bought from Vinod )

Jan.1

Vinod

Dr.

1,000

To Bills Payable A/c

1,000

(Bill drawn by Vinod accepted)

Mar.4

Bills Payable A/c

Dr.

1,000

To Bank A/c

1,000

(Payment of bill was made on its due date.)

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Similar questions

Q. 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.

Q. On 1st January, 2019, X sold goods of ₹ 20,000 to Y and drew a bill on Y at three months for the amount. Y accepted the bill. The bill is met on maturity. Pass the necessary Journal entries in the books of X and Y, if X discounted the bill @ 12% p.a. from bank on 4th January.

Q. B owed ₹ 20,400 to A. On 15th January, 2019, he accepted a bill for ₹ 20,000 for two months drawn by A in full settlement of his debt. On 18th January, 2019, A endorsed the bill to his creditor C. The bill was duly met on the date of maturity. Pass Journal entries in the books of A, B and C.

On 15th January, 2016, Sachin sold goods for Rs. 30,000 to Narain and drew upon latter a bill for the same amount payable after 3 months. The bill was accepted by Narain. The bill was discounted by Sachin from his bank for Rs. 29.250 on 31st January, 2016. On maturity, the bill was dishonoured. He further agreed to pay Rs. 10,500 in cash including Rs. 500 interest and accept a new bill for 2 months for the remaining Rs. 20,000. The new bill was endorsed by Sachin in favour of his creditor Kapil for debt of Rs. 20,000. The new bill was duly met by Narain on maturity. Give the journal entries in the books of Sachin.

Q. On 1st January, 2019, A sold goods to B for ₹ 5,000 plus IGST @ 18%. A received ₹ 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On due date, the bill was paid.
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Books of Vinod
Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan.1	Darbara Singh	Dr.		1,000
	To Sales A/c				1,000
	(Goods sold to Darbara Singh)

Jan.1	Bills Receivable A/c	Dr.		1,000
	To Darbara Singh				1,000
	(Bills accepted by Darbara Singh)

Jan.4	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 (₹)	Credit Amount (₹)
2019
Jan.1	Purchases A/c	Dr.		1,000
	To Vinod				1,000
	(Goods bought from Vinod )

Jan.1	Vinod	Dr.		1,000
	To Bills Payable A/c				1,000
	(Bill drawn by Vinod accepted)

Mar.4	Bills Payable A/c	Dr.		1,000
	To Bank A/c				1,000
	(Payment of bill was made on its due date.)