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Question -

Vishal sold goods for ₹ 7,000 to Manju on Jan 05, 2016 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal’s draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank@12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.



Answer -

Books of Vishal 

Journal

Date

Particulars

L.F.

Debit

Amount 

Credit 

Amount 

2016

05 Jan

Manju

Dr.

7,000

To Sales A/c

7,000

(Good Manju)

05 Jan

Bills Receivable A/c

Dr.

7,000

To Manju

7,000

(Manju’s acceptance received for two months)

05 Jan

Bank A/c

Dr.

6,860

Discount A/c

Dr.

140

7,000

To Bills Receivable A/c

(Bill Receivable discounted with the bank @ 12 % p.a. for two months)

Books of Manju 

Journal

Date

Particulars

L.F.

Debit 

Amount

Credit

Amount

2016

05 Jan

Purchases A/c

Dr.

7,000

To Vishal

7,000

(purchasing from Vishal)

05 Jan

Vishal

Dr.

7,000

To Bills Payable A/c

7,000

(Bill drawn by Vishal acknowledged)

08 Mar

Bills Payable A/c

Dr.

7,000

To Bank A/c

7,000

(Bill Payable Amount paid to bank on maturity)

 

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