Question -
Answer -
(i): When the bill was retained by Ravindran with him till the date of itsmaturity
| Books of Ravindran |
| Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | |
| 01 Feb | Narayanan | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Narayanan) | | | | |
| | | | | | |
| 01 Feb | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Narayanan | | | | 25,000 |
| (Narayanan’s acceptance received for 30 days) | | | | |
| | | | | | |
| 05 Mar | Narayanan | Dr. | | 25,000 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Narayanan failed to meet his acceptance and bill dishonoured) | | | |
| | | | | | |
| | | | | | | |
| Books of Narayanan |
| Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | | |
| 01 Feb | Purchases A/c | Dr. | | 25,000 | |
| | To Ravindran | | | | 25,000 |
| (Goods purchased from Ravindran) | | | | |
| | | | | |
| 01 Feb | Ravindran | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Ravindran’s bill accepted) | | | | |
| | | | | | |
| 05 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Ravindran A/c | | | | 25,000 |
| (Bill dishonoured on maturity) | | | |
| | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | |
(ii): When the bill was discounted by Ravindran immediately with his bank @ 6%p.a.
| Books of Ravindran |
| Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| | | | | | |
| 2016 | | | | | |
| 01 Feb | Narayanan | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Narayanan) | | | | |
| | | | | | |
| 01 Feb | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Narayanan | | | | 25,000 |
| (Narayanan’s acceptance received) | | | | |
| | | | | | |
| 01 Feb | Bank A/c | Dr. | | 24,875 | |
| Discount A/c | Dr. | | 125 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Narayanan’s acceptance got discounted with bank @ 6% p.a.) | | | |
| | | | | | |
| 05 Mar | Narayanan | | | 25,000 | |
| | To Bank A/c | | | | 25,000 |
| (Narayanan’s acceptance dishonoured) | | | | |
| | | | | | |
| | | | | | | | |
| Books of Narayanan |
| Journal |
| Date | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | | |
| 01 Feb | Purchases A/c | Dr. | | 25,000 | |
| | To Ravindran | | | | 25,000 |
| (Goods purchased from Raivnderan) | | | | |
| | | | | |
| 01 Feb | Ravindran | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Ravindran’s bill accepted) | | | | |
| | | | | | |
| 05 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Ravindran | | | | 25,000 |
| (Bill dishonoured on maturity) | | | | |
| | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | |
(iii): When the bill was endorsed to his creditor Ganeshan
| Books of Ravindran |
| Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| | | | | | |
| 2016 | | | | | |
| 01 Feb | Narayanan | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Narayanan) | | | | |
| | | | | | |
| 01 Feb | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Narayanan | | | | 25,000 |
| (Narayanan’s acceptance received) | | | | |
| | | | | | |
| 01 Feb | Ganeshan | Dr. | | 25,000 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Narayanan’s acceptance endorsed in favour of Ganeshan) | | | | |
| | | | | | |
| 05 Mar | Narayanan | Dr. | | | |
| | To Ganeshan A/c | | | | 25,000 |
| (Narayanan’s acceptance dishonoured) | | | | |
| | | | | | |
| | | | | | | | |
| Books of Narayanan |
| Journal |
| Date | Particulars | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | | |
| 01 Feb | Purchases A/c | Dr. | | 25,000 | |
| | To Ravindran | | | | 25,000 |
| (Goods purchased from Ravindran) | | | | |
| | | | | |
| 01 Feb | Ravindran | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Ravindran’s bill accepted) | | | | |
| | | | | | |
| 05 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Ravindran | | | | 25,000 |
| (Ravindran’s bill dishonoured on due date) | | | | |
| | | | | | |
| | | | | | | | |
| | | | | | | | | | | | |
(iv): Whenthe bill was sent by Ravindran to his bank for collection a few days before itmaturity
| Books of Ravindran |
| Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| | | | | | |
| 2016 | | | | | |
| 01 Feb | Narayanan | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Narayanan) | | | | |
| | | | | | |
| 01 Feb | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Narayanan | | | | 25,000 |
| (Narayanan’s acceptance received) | | | | |
| | | | | | |
| 01 Feb | Bill Sent for Collection A/c | Dr. | | 25,000 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Bill sent to bank for collection) | | | | |
| | | | | | |
| 05 Mar | Narayanan | Dr. | | 25,000 | |
| | To Bill Sent for Collection A/c | | | | 25,000 |
| (Bill got dishonoured) | | | | |
| | | | | | |
| | | | | | | | |
| Books of Narayanan | |
| Journal | |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ | |
| 2016 | | | | | | | |
| 01 Feb | Purchases A/c | Dr. | | 25,000 | | |
| | To Ravindran | | | | 25,000 | |
| (Bought goods from Ravindran) | | | | | |
| | | | | | |
| 01 Feb | Ravindran | Dr. | | 25,000 | | |
| | To Bills Payable A/c | | | | 25,000 | |
| (Ravindran’s bill accepted) | | | | | |
| | | | | | | |
| 05 Mar | Bills Payable A/c | Dr. | | 25,000 | | |
| | To Ravindran | | | | 25,000 | |
| (Ravindran’s bill dishonoured) | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | |