Question

Vishal sold goods for ₹ 70,000 to Manju on Jan. 5, 2019 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank @ 12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.

Answer 1

Books of Vishal Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 05	Manju	Dr.		70,000
	To Sales A/c				70,000
	(Goods sold to Manju)
Jan. 05	Bills Receivable A/c	Dr.		70,000
	To Manju				70,000
	(Manju accepted the bill)
Jan. 05	Bank A/c	Dr.		68,600
	Discounting Charges A/c	Dr.		1,400
	To Bills Receivable A/c				70,000
	(Bill discounted with bank @ 12% p.a. for 2 months)

Books of Manju Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 05	Purchases A/c	Dr.		70,000
	To Vishal				70,000
	(Goods purchased from Vishal)
Jan. 05	Vishal	Dr.		70,000
	To Bills Payable A/c				70,000
	(Bill drawn by Vishal, accepted)
Mar. 08	Bills Payable A/c	Dr.		70,000
	To Cash A/c				70,000
	(Bill honoured on maturity)

Working Note:

Calculation of Discounting Charges

$\mathrm{Discounting}\mathrm{Charges}=7,000\times \frac{12}{100}\times \frac{2}{12}=\mathrm{Rs}140$