Page 291 - VIRANSH COACHING CLASSES

In the books of Harsh
Journal
Date Particulars L. F. Debit Credit
Amount ` Amount `
2019 Purchases A/c .....................................................Dr. 40,000
May 1 To Gautam’s A/c 40,000
(Being good purchased on credit)
2019 Gautam’s A/c .....................................................Dr. 40,000
May 1 To Bills Payable A/c 40,000
(Being bill accepted)
a) 2019 Bills Payable A/c ...............................................Dr. 40,000
July 4 To Gautam’s A/c 40,000
(Being our acceptance dishonoured)

Note : In case of b, c and d entries in the Books of Drawee will be same as above.
3. Kabir owes Rahul ` 37,000 on 1 Dec. 2019, Kabir accepts a three months bill for ` 35,500 in
st
full settlement. On the due date the bill is dishonoured by Kabir and Rahul paid noting charges
` 500. Give journal entries in the book of Kabir and Rahul. Also prepare Kabir’s A/c in the
books of Rahul and Rahul’s A/c in the books of Kabir.

In the books of Rahul
Journal
Date Particulars L. F. Debit Credit
Amount ` Amount `
2019 Bills Receivable A/c ..........................................Dr. 35,500
Dec. 1 Discount A/c .......................................................Dr. 1,500
To Kabir’s A/c 37,000
(Being bill drawn in full settlement and acceptance
received)
2020 Kabir’s A/c .........................................................Dr. 37,500
Mar. 4 To Bills Receivable A/c 35,500
To Discount A/c 1,500
To Cash A/c 500
(Being Kabir’s acceptance dishonoured and noting
charges paid)

Note : Discount previously allowed has been cancelled on dishonour.

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