Question

Anshu purchased goods of ₹ 36,000 from Kavya on credit on 15th April, 2023. Kavya draws After Sight Bill for the amount due on Anshu for 3 months which was accepted by Anshu on 18th April, 2023. On 20th April, 2023 Kavya endorsed the bill to his creditor John in full settlement of his amount ₹ 37,800. On the due date the bill was dishonoured by Anshu.
Give Journal Entries in the books of Kavya, Anshu and John.

Answer 1

In the books of Kavya Journal Entries
Date	Particulars	L.F.	Debit Amount (₹)	Credit Amount (₹)
2023
April 15	Anshu’s A/c   ...Dr.		36,000	-
	To Sales A/c		-	36,000
	(Being goods sold on credit)
18	Bills Receivable A/c   ...Dr.		36,000	-
	To Anshu’s A/c		-	36,000
	(Being bill drawn and acceptance received)
20	John’s A/c   ...Dr.		37,800	-
	To Bills Receivable A/c		-	36,000
	To Discount A/c		-	1,800
	(Being Anshu’s acceptance endorsed)
July 21	Anshu’s A/c   ...Dr.		36,000	-
	Discount A/c   ...Dr.		1,800	-
	To John’s A/c		-	37,800
	(Being Anshu’s acceptance dishonoured and revert the John’s A/c)

 

In the books of Anshu Journal Entries
Date	Particulars	L.F.	Debit Amount (₹)	Credit Amount (₹)
2023
April 15	Purchase A/c  ...Dr.		36,000	-
	To Kavya’s A/c		-	36,000
	(Being goods purchased on credit)
18	Kavya’s A/c  ...Dr.		36,000	-
	To Bills Payable A/c		-	36,000
	(Being our acceptance is given)
July 21	Bills Payable A/c  ...Dr.		36,000	-
	To Kavya’s A/c		-	36,000
	(Being our acceptance dishonoured on due date)

 

In the books of John Journal Entries
Date	Particulars	L.F	Debit Amount (₹)	Credit Amount (₹)
2023
April 20	Bills Receivable A/c  ...Dr.		36,000	-
	Discount A/c  ...Dr.		1,800	-
	To Kavya’s A/c		-	37,800
	(Being Bills Receivable received)
July 21	Kavya’s A/c  ...Dr.		37,800	-
	To Bills Receivable A/c		-	36,000
	To Discount A/c		-	1,800
	(Being Bills receivable dishonoured)