Question

Abdula sold goods to Tahir on Jan 17, 2017 for ₹ 18,000. He drew a bill of exchange for the same amount on Tahir for 45 days. On the same date Tahir accepted the bill and returned it to Abdulla. On the due date Abdulla presented the bill to Tahir which was dishonoured. Abdulla paid ₹ 40 as noting charges. Five days after the dishonour of his acceptance Tahir settled his debt by making a payment of ₹ 18,700 including interest and noting charges.
Record the necessary journal entries in the books of Abdulla and Tahir. Also prepare Tahir's account in the books of Abdulla and Abdulla's account in the books of Tahir.

Answer 1

Books of Abdula Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2017
Jan.17	Tahir Dr.		18,000
	To Sales A/c			18,000
	(Goods sold to Tahir)
Jan.17	Bills Receivable A/c Dr.		18,000
	To Tahir			18,000
	(Tahir's acceptance received)
Mar.06	Tahir Dr.		18,040
	To Bills Receivable A/c			18,000
	To Cash			40
	(Tahir's acceptance dishonoured and ₹ 40 paid as noting charges)
Mar.06	Tahir Dr.		660
	To Interest A/c			660
	(Interest charged from Tahir on account of bill dishonoured)
Mar.12	Cash A/c Dr.		18,700
	To Tahir			18,700
	(Tahir cleared his account by paying cash)

 

Dr.	Ledger Tahir’s Account						Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.17	Sales		18,000	Jan.17	Bills Receivable		18,000
Mar.06	Bills Receivable		18,000	Mar.11	Cash		18,700
Mar.06	Cash		40
Mar.06	Interest		660
			36,700				36,700

 

Books of Tahir Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2017
Jan.17	Purchases A/c Dr.		18,000
	To Abdula			18,000
	(Goods bought from Abdula)
Jan.17	Abdula Dr.		18,000
	To Bills Payable A/c			18,000
	(Bill drawn by Abdula accepted, payable after 15 days)
Mar.06	Bills Payable A/c Dr.		18,000
	Noting Charges A/c Dr.		40
	To Abdula			18,040
	(Abula's bill dishonoured)
Mar.07	Interest A/c Dr.		660
	To Abdula			660
	(Interest charged on account of bill dishonoured)
Mar.11	Abdula Dr.		18,700
	To Cash A/c			18,700
	(Cash paid to Abdula)

 

Dr.	Ledger Abdula’s  Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.17	Bills Payable		18,000	Jan.17	Purchases		18,000
Mar.11	Cash		18,700	Mar.06	Bills Payable		18,000
				Mar.06	Noting Charges		40
				Mar.06	Interest		660
			36,700				36,700