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Question
On 1st Jan. 2020 Hemant sold goods of ₹ 18,500 to Nitin. On the same date, Hemant drew a bill of exchange for ₹ 18,500 at 2 months. On the due date, the bill was duly honoured.
Give Journal Entries in the Books of Hemant and Nitin. Prepare Hamant’s account in the books of Nitin.
Solution
|
In the books of Hemant Journal Entries |
||||
| Date | Particulars | L.F | Debit (₹) | Credit (₹) |
| 2020 Jan. 1 | Nitin’s A/c Dr | 18,500 | ||
| To Sales A/c | 18,500 | |||
| (Being goods sold on credit) | ||||
| 2020 Jan. 1 | Bills Receivable A/c Dr | 18,500 | ||
| To Nitin’s A/c | 18,500 | |||
| (Being bill drawn and acceptance received from Nitin) | ||||
| 2020 Mar. 4 | Cash / Bank A/c Dr | 18,500 | ||
| To Bills Receivable A/c | 18,500 | |||
| (Being Nitin’s acceptance honoured on the due date) | ||||
| 55,500 | 55,500 | |||
|
In the books of Nitin Journal Entries |
||||
| Date | Particulars | L.F | Debit (₹) | Credit (₹) |
| 2020 Jan. 1 | Purchase A/cDr | 18,500 | ||
| To Hemant’s A/c | 18,500 | |||
| (Being goods purchased on credit) | ||||
| 2020 Jan. 1 | Hemant’s A/c Dr | 18,500 | ||
| To Bills Payable A/c | 18,500 | |||
| (Being our acceptance is given) | ||||
| 2020 Mar. 4 | Bills Payable A/c Dr | 18,500 | ||
| To Cash / Bank A/c | 18,500 | |||
| (Being our acceptance honoured on due date) | ||||
| 55,500 | 55,500 | |||
| Dr |
In the books of Nitin. Hemant’s Account |
Cr | |||||||
| Date | Particulars | J.F | Amount (₹) | Date | Particulars | J.F | Amount (₹) | ||
| 2020 Jan. 1 | To Bills Payable A/c | 18,500 | 2020 Jan. 1 | By Purchase A/c | 18,500 | ||||
| 18,500 | 18,500 | ||||||||
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