Question

Kapil purchased goods for ₹ 21,000 from Gaurav on 1.2.2017 and accepted a bill of exchange drawn by Gaurav for the same amount. The bill was payable after one month. On 25.2.2017 Gaurav sent the bill to his bank for collection. The bill was duly presented by the bank. Kapil dishonoured the bill and the bank paid ₹ 100 as noting charges.
Record the necessary journal entries for the above transactions in the books of Kapil and Gourav.

Answer 1

Books of Gaurav Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2017
Feb.01	Kapil Dr.		21,000
	To Sales A/c			21,000
	(Goods sold to Kapil)
Feb.01	Bills Receivable A/c Dr.		21,000
	To Kapil			21,000
	(Kapil's acceptance received)
Feb.25	Bills Sent for Collection A/c Dr.		21,000
	To Bills Receivable A/c			21,000
	(Bill Receivable sent to bank for collection)
Mar.04	Kapil Dr.		21,100
	To Bill Sent for Collection A/c			21,000
	To Bank A/c			100
	(Kapil's acceptance dishonoured)

 

Books of Kapil Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2017
Feb.01	Purchases A/c Dr.		21,000
	To Gaurav			21,000
	(Goods bought from Gaurav)
Feb.01	Gaurav Dr.		21,000
	To Bills Payable A/c			21,000
	(Bill drawn by Gaurav payable after one month accepted)
Mar.04	Bills Payable A/c Dr.		21,000
	Noting Charges A/c Dr.		100
	To Gaurav			21,100
	(Bill drawn by Kapil dishonoured)