Question

On Jan 01, 2016 Neha sold goods for ₹ 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.

Answer 1

Books of Neha Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2016
Jan.01	Muskan Dr.		20,000
	To Sales A/c			20,000
	(Goods sold to Muskan)
Jan.01	Bills Receivable A/c Dr.		20,000
	To Muskan			20,000
	(Muskan's acceptance received)
Feb.04	Cash A/c Dr.		19,800
	Rebate on bill A/c Dr.		200
	To Bills Receivable A/c			20,000
	(Muskan's acceptance retired one month before maturity and allowed rebate at 12% p.a.)

 

Books of Muskan Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2016
Jan.01	Purchases A/c Dr.		20,000
	To Neha			20,000
	(Goods bought from Neha)
Jan.01	Neha Dr.		20,000
	To Bills Payable A/c			20,000
	(Bill drawn by Neha payable after 2 months accepted)
Feb.04	Bills Payable A/c Dr.		20,000
	To Cash A/c			19,800
	To Rebate on Bills A/c			200
	(Bill paid one month before maturity and received rebate at 12% p.a.)