Question

Pankaj purchased goods of ₹ 20,000 from Omprakash on credit on 15th April 2019. Omprakash draws After Sight bill for the amount due on Pankaj for 3 months, which was accepted by Pankaj on 18th April, 2019. On 20th April, 2019 Omprakash endorsed the bill to his creditor Jagsish in full settlement of his amount ₹ 21,000. On the due date, the bill was dishonoured by Pankaj.

Give Journal Entires in the Books of Omprakash, Pankaj and Jagdish.

Answer 1

In the books of Omprakash Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
2019 April 15	Pankaj’s A/c   ...Dr.		20,000
	To Sales A/c			20,000
	(Being goods sold on credit)
2019 April 18	Bills Receivable A/c   ...Dr.		20,000
	To Pankaj’s A/c			20,000
	(Being bill drawn and acceptance received)
2019 April 20	Jagdish’s A/c   ...Dr.		21,000
	To Bills Receivable A/c			20,000
	To Discount A/c			1,000
	(Being Pankaj’s acceptance endorsed)
2019 July 21	Pankaj’s A/c   ...Dr.		20,000
	Discount A/c   ...Dr.		1000
	To Jagdish’s A/c			21,000
	(Being Pankaj’s acceptance dishonoured and reverted the Jagdish’s A/c)
			82000	82000

 

In the books of Pankaj Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
2019 April 15	Purchase A/c   ...Dr.		20,000
	To Omprakash’s A/c			20,000
	(Being goods purchased on credit)
2019 April 18	Omprakash’s A/c   ...Dr.		20,000
	To Bills Payable A/c			20,000
	(Being our acceptance is given.)
2019 April 20	No Entry		-	-
2019 July 21	Bill Payable A/c   ...Dr.		20,000
	To Omprakash’s A/c			20,000
	(Being our acceptance dishonoured on the due date)
			60,000	60,000

 

In the books of Jagdish Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
2019 April 20	Bills Receivable A/c   ...Dr.		20,000
	Discount A/c   ...Dr.		1000
	To Omprakash’s A/c			21,000
	(Being Bills Receivable received)
2019 July 21	Omprakash’s A/c   ...Dr.		21,000
	To Bills ReceivableA/c			20,000
	To Discount A/c			1000
	(Being Bills receivable dishonoured)
			42000	42000