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 1

Books of Vishal  Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2016
Jan.05	Manju Dr.		7,000
	To Sales A/c			7,000
	(Goods sold to Manju)
Jan.05	Bills Receivable A/c Dr.		7,000
	To Manju			7,000
	(Manju's acceptance received for two months)
Jan.05	Bank A/c Dr.		6,860
	Discount A/c Dr.		140
	To Bills Receivable A/c			7,000
	(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
Jan.05	Purchases A/c Dr.		7,000
	To Vishal			7,000
	(Goods purchased from Vishal)
Jan.05	Vishal Dr.		7,000
	To Bills Payable A/c			7,000
	(Bill drawn by Vishal accepted)
Mar.08	Bills Payable A/c Dr.		7,000
	To Bank A/c			7,000
	(Amount of Bill Payable paid to bank on maturity)