Question

On 1st June, 2019 Pratap sold goods to Sujit worth ₹ 1,82,000. Sujit accepted a bill drawn upon him by Pratap for 2 months for ₹ 1,82,000. Give Journal entires in the book of Pratap and Sujit for the following cases:

1. Bill is honoured on the due date.
2. Bill is dishonoured on the due date.
3. Bill is dishounoured on the due date and noting charges ₹ 1,250 paid by Pratap.

Answer 1

In the books of Pratap
Date	Particular	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
2019 June 1	Sujit's A/c   ...Dr.		1,82,000	-
	To Sales A/c		-	1,82,000
	(Being goods sold on credit)
June 1	Bills Receivable  ...Dr.		1,82,000	-
	To Sujit's A/c		-	1,82,000
	(Being bill drawn and acceptance received)
(a) Aug. 4	Bank A/c      ...Dr.		1,82,000	-
	To Bills Receivable A/c		-	1,82,000
	(Being Sujit's Acceptance honoured on the due date)
(b) Aug. 4	Sujit's A/c   ...Dr.		1,82,000	-
	To Bills Receivable A/c		-	1,82,000
	(Being Sujit's Acceptance dishonoured on the due date)
(c) Aug. 4	Sujit's A/c   ...Dr.		1,83,250	-
	To Bills Receivable A/c		-	1,82,000
	To Cash A/c		-	1,250
	(Being Sujit's Acceptance dishonoured and noting charges paid)

 

In the books of Sujit
Date	Particular	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
2019 June 1	Purchase A/c   ...Dr.		1,82,000	-
	To Pratap's A/c		-	1,82,000
	(Being goods Purchase on credit)
June 1	Pratap's  ...Dr.		1,82,000	-
	To Bills Payable A/c		-	1,82,000
	(Being our acceptance given)
(a) Aug. 4	Bills Payable A/c      ...Dr.		1,82,000	-
	To Bank A/c		-	1,82,000
	(Being our acceptance honoured on the due date)
(b) Aug. 4	Bills Payable  A/c   ...Dr.		1,82,000	-
	To Pratap's A/c		-	1,82,000
	(Being our Acceptance dishonoured on the due date)
(c) Aug. 4	Bills Payable  A/c   ...Dr.		1,82,000	-
	Noting Charges A/c     ...Dr.		1,250	-
	To Pratap's A/c		-	1,83,250
	(Being our acceptance dishonoured and noting charges paid)