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Question -

On Jan 01, 2016 Neha sold goods for ₹ 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.



Answer -

Books of Neha

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2016

01 Jan

Muskan

Dr.

20,000

To Sales A/c

20,000

(Goods tradedto Muskan)

01 Jan

Bills Receivable A/c

Dr.

20,000

To Muskan

20,000

(Muskan’s acceptance received)

04 Feb

Cash A/c

Dr.

19,800

Rebate on bill A/c

Dr.

200

To Bills Receivable A/c

20,000

(Muskan’s acceptance retired one month before

maturity and allowed rebate at 12% p.a.)

  

Books of Muskan

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2016

01 Jan

Purchases A/c

Dr.

20,000

To Neha

20,000

(Goods purchased from Neha)

01 Jan

Neha

Dr.

20,000

To Bills Payable A/c

20,000

(Bill drawn by Neha payable after 2 months

accepted)

04 Feb

Bills Payable A/c

Dr.

20,000

To Cash A/c

19,800

To Rebate on Bills A/c

200

(Bill paid one month before maturity and received

Rebate at 12% p.a.)

 

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