Question

Raja made sales of goods worth Rs 40,000 to Pradhan and received a part payment of Rs 10,000. 
On the same date, Raju drew on Pradhan a three months’ bill for `Rs  30,000, received the acceptance on the bill and sent the bill to the bank for collection immediately.
However, on the due date, the bill was dishonoured due to Pradhan’s insolvency and only 50% of
the amount due could be recovered from his private estate as the first and final dividend.
Give Journal Entries and Pradhan’s Account in the books of Raja.

Answer 1

Journal of Raja

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs. )
1	Cash/Bank A/c ... Dr.		10000
	Pradhan’s A/c  .... Dr.		30000
	To Sales A/c			40000
	[Being the goods sold and part payment received]
2	Bills Receivable A/c ... Dr.		30000
	To Pradhan’s A/c			30000
	[Being the accptance received from Pradhan]
3	Bills sent to Bank for Collection A/c ... Dr.		30000
	To Bills Receivable A/c			30000
	[Being the bill sent to the bank for collection]
4	Pradhan’s A/c ... Dr.		30000
	To Bill sent to Bank for Collection A/c			30000
	[Being the bill is dishonoured]
5	Cash/Bank A/c ... Dr.		15000
	Bad debts A/c .... Dr.		15000
	To Pradhan’s A/c			30000
	[Being 50% of the amount due recovered from Pradhan]

In the Ledger of Raja

Pradhan’s Account

Date	Particulars	Amount	Date	Particulars	Amount
1.	To Sales A/c [Credit Sales]	30000	2.	By Bills Receivable A/c (Acceptance Received)	30000
4.	To Bill Sent to Bank for Collection A/c (Bill sent to the bank)	30000	5.	By Cash / Bank A/c [Amount recovered]	15000
			5.	By Bad debts A/c (Bad debts incurred)	15000
		60000			60000