Page 290 - VIRANSH COACHING CLASSES

2. (Dishonour of bill under different circumstances)
Gautam sold goods of ` 40,000 to Harsh on 1 May 2019. For this purpose, Gautam drew a bill
st
on Harsh for 2 months. Harsh accepted the same and returned it to Gautam. On matutity the bill
was dishonoured by Harsh. Give journal entries in the books of Gautam and Harsh under
the following circumstances :
a) If Gautam retained the bill till maturiry.
b) If Gautam discounted the bill with the bank at 12% p.a. on 1 June, 2019.
st
c) If Gautam sent the bill to bank for collection on 15 May, 2019.
th
d) If Gautam endorsed the bill to his creditor Arnav.
In the books of Gautam
Journal
Date Particulars L. F. Debit Credit
Amount ` Amount `
2019 Harsh’s A/c ........................................................Dr. 40,000
May 1 To Sales A/c 40,000
(Being goods sold on credit)
May 1 Bills Receivable A/c ..........................................Dr. 40,000
To Harsh’s A/c 40,000
(Being bill drawn and accepted by Harsh for 2
months)
a) Jul. 4 Harsh’s A/c ........................................................Dr. 40,000 40,000
To Bills Receivable A/c
(Being Harsh’s acceptance dishonoured on the due
date)
b) i) Bank A/c ............................................................Dr. 39,600
May 1 Discount A/c .......................................................Dr. 400
To Bills Receivable A/c 40,000
(Being Harsh’s acceptance Discounted with the bank
at 12% p.a. for 2 months)
b) ii) Harsh’s A/c 40,000
Jul. 4 To Bank A/c ..................................................Dr. 40,000
(Being Harsh’s acceptance discounted with the Bank
dishonoured)
c) i) Bill sent for collection A/c .................................Dr. 40,000
May 15 To Bill Receivable A/c 40,000
(Being Harsh’s acceptance sent to the bank for
collection)
c) ii) Harsh’s A/c ........................................................Dr. 40,000
Jul. 4 To Bill sent for collection A/c 40,000
(Being Harsh’s acceptance sent to bank for collec-
tion dishonoured)
d) i) Arnav’s A/c ........................................................Dr. 40,000
May 1 To Bill Receivable A/c 40,000
(Being Harsh’s acceptance endorsed to Arnav)
Harsh’s A/c
c) ii) Harsh’s A/c ........................................................Dr. 40,000
Jul. 4 To Arnav’s A/c 40,000
(Being Harsh’s acceptance endorsed dishonoured on
the due date

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