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Question
Vasanti sold goods on credit of Rs 8,500 to Aruna on 14th July 2009. On the same date Vasanti drew two bills for Rs 5,000 and 3,500 for 2 and 3 months period respectively. Aruna accepted and return immediately. On 21st July, 2009 Vasanti deposited 3 months acceptance to her bank for collections.
On the due date of the respective bills Aruna honoured 2 months acceptance but dishonoured the second for which Vasanti paid nothing chargers Rs 60 and her bank debited 50 for bank chargers
Pass the journal entries in the books of Vasanti and Aruna.
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Solution
Books Of Vasanti
Journal Entry
| Date | Particulars | L.F. | Debit Amount Rs. | Credit Amount Rs. |
|
2009 |
Aruna A/c Dr. To Sales A/c (Goods sold to Aruna on credit) |
8,500 |
8,500 |
|
| Jul.14 |
Bills Receivable A/c Dr. |
5,000 3,500 |
8,500 | |
| Jul.21 | Bill Sent for Collection A/c Dr. To Bills Receivable A/c (Bill sent to bank for collection) |
3,500 | 3,500 | |
| Sept.17 | Bank A/c Dr. To Bill Receivable A/c (Bill honoured on maturity) |
5,000 | 5,000 | |
| Oct . 17 | Aruna Dr. To Bill Sent for Collection A/c To Bank A/c (Bill sent for collection dishonoured and noting charges of Rs 60 paid by Vasanti) |
3,560 | 3,500 60 |
|
| Oct . 17 | Bank charges A/c Dr. To Bank A/c (Bank Charges paid) |
50 | 50 |
Books of Arna
Journal Entry
| Date | Particulars | L.F. | Debit Amount Rs. | Credit Amount Rs. |
| 2009 Jul.14 |
Purchases A/c Dr. To Vasanti A/c ( Goods purchased on Credit from Vasnti) |
8,500 | 8,500 | |
| Jul.14 | Vasanti A/c Dr. To Bills Payable A/c To Bills Payable A/c (Bills accepted by Aruna) |
8,500 | 8,500 | |
| Sept.17 | Cash/Bank A/c Dr. To Bills Payable A/c (Amount paid on maturity) |
5,000 | 5,000 | |
| Oct.18 | Bills Payable A/c Dr. Noting Charges A/c Dr. To Vasanti A/c (Bill dishonoured on maturity) |
3,500 60 |
3,560 |
