Question

Give journal entries of the following in the books of Daulat.

1. Sarita’s acceptance for 3 months of 20,000 was discounted with the bank at 19,800.
2. Siddhi’s acceptance of 15,000 retired one month before the due date at a rebate of 12% p.a.
3. Prachiti’s acceptance of 9,750 is endorsed in favour of Bhumika in full settlement of her account 10,000.
4. Sold goods to Madhura 20,000 @ 10% trade discount. Received half the amount in cash and for the balance a bill for 2 months which was accepted by Madhura. On the due date, Madhura meets the bill.

Answer 1

Journal Entries in the books of Daulat
Sr. No.	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Bank A/c   ...Dr.		19,800	-
	Discount A/c   ...Dr.		200	-
	To Bills Receivable A/c			20,000
	(Being Sarita’s acceptance discounted with the bank)
(2)	Cash/Bank A/c   ...Dr.		14,850	-
	Rebate A/c ...Dr.		150	-
	To Bills Receivable A/c		-	15,000
	(Being Siddhi’s acceptance retired at 12% p.a. rebate)
(3)	Bhumika’s A/c   ...Dr.		10,000	-
	To Bills Receivable A/c		-	9,750
	To Discount Received A/c		-	250
	(Being bill endorsed to Bhumika in full settlement)
(4)	Cash A/c   ...Dr.		9,000	-
	Bills Receivable A/c   ...Dr.		9,000	-
	To Sales A/c		-	18,000
	(Being goods sold at 10% T.D., half cash and half bill received)
	Cash/Bank A/c   ...Dr.		9,000	-
	To Bills Receivable A/c		-	9,000
	(Being Madhura’s bill honored on the due date)

Working Notes:

(1) Discount = 20,000 - 19,800

= 200

(2) Rebate = `15,000 xx 12/100 xx 1/12`

= 150

(3) Discount = Full settlement 10,000 - Bill value 9,750 = 250

(4) Sales Calculation:

Gross Price: 20,000

Less: 10% Trade Discount 2,000

Net Sales: 18,000

Cash/Bill: Half of 18,000 = 9,000 each