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Question -

Kapil purchased goods for ₹ 21,000 from Gaurav on 1.2.2017 and accepted a bill of exchange drawn by Gaurav for the same amount. The bill was payable after one month. On 25.2.2017 Gaurav sent the bill to his bank for collection. The bill was duly presented by the bank. Kapil dishonoured the bill and the bank paid ₹ 100 as noting charges. Record the necessary journal entries for the above transactions in the books of Kapil and Gourav.



Answer -

Books of Gaurav

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

01 Feb

Kapil

Dr.

21,000

To Sales A/c

21,000

(Goods tradedto Kapil)

01 Feb

Bills Receivable A/c

Dr.

21,000

To Kapil

21,000

(Kapil’s acceptance received)

25 Feb

Bills Sent for Collection A/c

Dr.

21,000

To Bills Receivable A/c

21,000

(Bill Receivable sent to bank for collection)

04 Mar

Kapil

Dr.

21,100

To Bill Sent for Collection A/c

21,000

To Bank A/c

100

(Kapil’s acceptance dishonoured)

Books of Kapil

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

01 Feb

Purchases A/c

Dr.

21,000

To Gaurav

21,000

(Goods purchased from Gaurav)

01 Feb

Gaurav

Dr.

21,000

To Bills Payable A/c

21,000

(Bill drawn by Gaurav payable after one month

accepted)

04 Mar

Bills Payable A/c

Dr.

21,000

Noting Charges A/c

Dr.

100

To Gaurav

21,100

(Bill drawn by Kapil dishonoured)

 

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