Question

Asha sold goods worth ₹ 19,000 to Nisha on March 02, 2017. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.
Record the necessary journal entries in the books of Asha and Nisha.

Answer 1

Books of Asha Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2017
Mar.02	Nisha Dr.		19,000
	To Sales A/c			19,000
	(Goods sold to Nisha)
Mar.02	Cash A/c Dr.		4,000
	Bills Receivable A/c Dr.		15,000
	To Nisha			19,000
	(Cash and Nisha's acceptance received)
Mar. 02	Bank A/c Dr.		14,635
	Discount A/c Dr.		375
	To Bills Receivable A/c			15,000
	(Nisha's acceptance discounted with bank at 10% p.a.) Note: In this question rate of discount is not given, the rate of discount (10% p.a.) has been assumed).
June.05	Nisha Dr.		15,030
	To Bank A/c			15,030
	(Nisha's acceptance dishonoured and bank paid ₹ 30 as noting charges)

 

Books of Nisha Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2017
Mar.02	Purchases A/c Dr.		19,000
	To Asha			19,000
	(Goods bought from Asha)
Mar.02	Asha Dr.		19,000
	To Bills Payable A/c			15,000
	To Cash A/c			4,000
	(Asha's bill accepted payable after three month and ₹ 4,000 paid in cash)
Jun.05	Bills Payable A/c Dr.		15,000
	Noting Charges A/c Dr.		30
	To Asha			15,030
	(Asha's bill dishonoured)