Question

Vishal sold goods for Rs. 7,000 to Manju on 5th January, 2016 and drew upon her bills 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 $@12$ per annum. On the due date, Manju met her acceptance.

Journalise the above transactions in the books of Vishal and Manju.

Answer 1

In the Books of Vishal
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Jan 5}& \text{Manju's A/c}\text{Dr.}& & 7,000& \\ & \text{To Sales A/c}& & & 7,000\\ & \underset{–}{\text{(Goods sold to Manju)}}& & & \\ \text{Jan 5}& \text{Bill Receivable A/c}\text{Dr.}& & 7,000& \\ & \text{To Manju's A/c}& & & 7,000\\ & \underset{–}{\text{(Acceptance received)}}& & & \\ \text{Jan 5}& \text{Bank A/c}\text{Dr.}& & 6,860& \\ & \text{Discounting Charges A/c}\text{Dr.}& & 140& \\ & \text{To Bill Receivable A/c}& & & 7,000\\ & \text{(Bll discounted with the bank @ 12\% per annum)}& & & \end{array}$

Working Note:

Calculation of Discount = $7,000\times \frac{12}{100}\times \frac{2}{12}=Rs.140$

In the Books of Manju
JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& L.F.& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ 2016& & & & \\ \text{Jan 5}& \text{Purchases A/c}\text{Dr.}& & 7,000& \\ & \text{To Vishal's A/c}& & & 7,000\\ & \underset{–}{\text{(Goods purchased from Vishal)}}& & & \\ \text{Jan 5}& \text{Vishal's A/c}\text{Dr.}& & 7,000& \\ & \text{To Bills Payable A/c}& & & 7,000\\ & \underset{–}{\text{(Acceptance given)}}& & & \\ \text{Mar 8}& \text{Bills Payable A/c}\text{Dr.}& & 7,000& \\ & \text{To Bank A/c}& & & 7,000\\ & \text{(Bills payable paid on maturity)}& & & \end{array}$