Question

On 2^nd Jan., 2011 Kiran of Kanpur purchased goods from Kavita of Kedgaon for Rs 4,850 and gave his acceptance to after date bill for 60 days on 5^th Jan, 2011 for the same amount. On the same date Kavita of Kedgaon deposited the bill into bank for collection. On the due date Kiran honoured his acceptance.
 You are required to pass journal entries in the books both the parties. 

Answer 1

In the Books Of Kavita

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2011 Jan.02	Kiran A/c                                                            Dr.		4,850
	To Sales A/c			4,850
	(Goods sold on credit to Kiran)
Jan.05	Bills Receivable A/c                                           Dr.		4,850
	To Kiran A/c			4,850
	(Bill accepted by Kiran)
Jan.05	Bill Sent For Collection A/c                              Dr.		4,850
	To Bills Receivable A/c			4,850
	(Bills sent to bank for collection)
Mar.06	Bank A/c                                                               Dr.		4,850
	To Bill Sent for Collection A/c			4,850
	(Bill Sent for Collection honoured on maturity)

In the Books of Kiran                

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2011 Jan. 02	Purchases A/c                                               Dr.		4,850
	To Kavita A/c			4,850
	(Goods purchased on credit from Kavita)
Jan. 05	Kavita A/c                                                       Dr.		4,850
	To Bills Payable A/c			4,850
	(Bill accepted )
Mar. 06	Cash/Bank A/c                                               Dr.		4,850	4,850
	To Bills Payable A/c
	(Amount of bill paid on maturity date)