MENU
Question -

On Jan. 01, 2017 Harsh accepted a month bill for ₹ 10,000 drawn on him by Tanu for latter’s benefit. Tanu discounted the bill on same day @ 8% p.a. On the due date Tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance. Record the journal entries in the Books of Tanu and Harsh.



Answer -

Books of Tanu

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

01 Jan

Bills Receivable A/c

Dr.

10,000

To Harsh

10,000

(Harsh’s acceptance received)

01 Jan

Bank A/c

Dr.

9,933

Discount A/c

67

To Bills Receivable A/c

10,000

(Harsh’s acceptance discounted at 8% p.a.

for one month)

04 Feb

Harsha

Dr.

10,000

To Bank A/c

10,000

(Harsh’s account settled by paying amount

due to Harsh through cheque)

Books of Harsh

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

01 Jan

Tanu

Dr.

10,000

To Bills Payable A/c

10,000

(Bill drawn by Tanu accepted)

04 Feb

Bank A/c

Dr.

10,000

To Tanu

10,000

(Cheque received from Tanu)

04 Feb

Bills Payable A/c

Dr.

10,000

To Bank A/c

10,000

(Bill drawn by Tanu met on due date)

 

Comment(S)

Show all Coment

Leave a Comment

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