Question

Vishal sold goods for Rs 7,000 to Manju on Jan 05, 2016 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 Rs	Credit Amount Rs
2016
Jan.05	Manju			Dr.		7,000
		To Sales A/c					7,000
	(Goods sold to Manju)
Jan.05	Bills Receivable A/c			Dr.		7,000
			To Manju				7,000
	(Manju's acceptance received for two months)
Jan.05	Bank A/c			Dr.		6,860
	Discount A/c			Dr.		140	7,000
			To Bills Receivable A/c
	(Bill Receivable discounted with the bank @ 12 % p.a. for two months)

Books of Manju
Journal
Date		Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
2016
Jan.05	Purchases A/c			Dr.		7,000
			To Vishal				7,000
	(Goods purchased from Vishal)
Jan.05	Vishal			Dr.		7,000
		To Bills Payable A/c					7,000
	(Bill drawn by Vishal accepted)
Mar.08	Bills Payable A/c			Dr.		7,000
		To Bank A/c					7,000
	(Amount of Bill Payable paid to bank on maturity)