MENU
Question -

Asha sold goods worth ₹ 19,000 to Nisha on March 02, 2017. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.

Record the necessary journal entries in the books of Asha and Nisha.



Answer -

Books of Asha

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

02 Mar

Nisha

Dr.

19,000

To Sales A/c

19,000

(Goods tradedto Nisha)

02 Mar

Cash A/c

Dr.

4,000

Bills Receivable A/c

Dr.

15,000

To Nisha

19,000

(Cash and Nisha’s acceptance received)

02 Mar

Bank A/c

Dr.

14,635

Discount A/c

Dr.

375

To Bills Receivable A/c

15,000

(Nisha’s acceptance discounted with bank at 10% p.a.)

Note: In this question rate of discount is not 

given, the rate of discount (10% p.a.) has been

 assumed).

05 Jun

Nisha

Dr.

15,030

To Bank A/c

15,030

(Nisha’s acceptance dishonoured and bank

paid ₹ 30 as noting charges)

Books of Nisha

Journal

Date

Particulars

L.F.

Debit 

Credit₹

2017

02 Mar

Purchases A/c

Dr.

19,000

To Asha

19,000

(Goods purchased from Asha)

02 Mar

Asha

Dr.

19,000

To Bills Payable A/c

15,000

To Cash A/c

4,000

(Asha’s bill accepted payable after three month and

₹ 4,000 paid in cash)

Jun.05

Bills Payable A/c

Dr.

15,000

Noting Charges A/c

Dr.

30

To Asha

15,030

(Asha’s bill dishonoured)

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×