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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.
Solution
| Books of Tanu Journal |
||||
| Date | Particulars | L.F. | Debit Amount ₹ |
Credit Amount ₹ |
| 2017 | ||||
| Jan.01 | Bills Receivable A/c Dr. | 10,000 | ||
| To Harsh | 10,000 | |||
| (Harsh's acceptance received) | ||||
| Jan.01 | 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) |
||||
| Feb.04 | 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 Amount ₹ |
Credit Amount ₹ |
| 2017 | 10,000 | |||
| Jan.01 | Tanu Dr. | 10,000 | ||
| To Bills Payable A/c | ||||
| (Bill drawn by Tanu accepted) | ||||
| Feb.04 | Bank A/c Dr. | 10,000 | ||
| To Tanu | 10,000 | |||
| (Cheque received from Tanu) | ||||
| Feb.04 | Bills Payable A/c Dr. | 10,000 | ||
| To Bank A/c | 10,000 | |||
| (Bill drawn by Tanu met on due date) | ||||
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