Question

Neha sold goods to Rohan's ₹42,000 on 6th Sept. 2019. Neha drew a bill of exchange at 3 months for the amount which was accepted by Rohan. Neha disounted the bill with her bankers at ₹ 41,000. On the due date of the bill, Rohan dishonoured the bill and bank paid ₹ 300 as Noting Charges

Show Journal Entries in the Books of Neha and Rohan.

Answer 1

In the books of Neha Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
2019 September 6	Rohan’s A/c    ...Dr.		42,000
	To Sales A/c			42,000
	(Being goods sold on credit)
2019 September 6	Bills Receivable A/c    ...Dr.		42,000
	To Rohan’s A/c			42,000
	(Being bill drawn and acceptance received)
2019 September 6	Bank A/c    ...Dr.		41,000
	Discount A/c    ...Dr.		1,000
	To Bills Receivable A/c			42,000
	(Being Rohan’s acceptance discounted with bank)
2019 December 9	Rohan’s A/c    ...Dr.		42,300
	To Bank A/c			42,300
	(Being Rohan’s acceptance discounted with bank dishonoured and noting charges paid by the bank.)
			168,300	168,300

 

In the books of Rohan Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
2019 September 6	Purchase A/c    ...Dr.		42,000
	To Neha’s A/c			42,000
	(Being goods purchased on credit)
2019 September 6	Neha’s A/c    ...Dr.		42,000
	To Bills Payable A/c			42,000
	(Being our acceptance given)
2019 December 9	Bills Payable A/c    ...Dr.		42000
	Noting Changes A/c    ...Dr.		3,00
	To Neha’s A/c			42300
	(Being our acceptance dishonoured and noting charges payable)
			126300	126300