Question

Sudhatai sold goods to Chhayatai on credit for 4 months for Rs 10,000 on 7^th Sept., 2009. Chhayatai paid on her account of Rs 4,000 at 2% cash discount and accepted bill for the balance at 2 months. On the same date Sudhatai discounted with her bank at 12% p.a. on due date Chhayatai honoured her bill.
A. You required to write journal of Sudhatai.
B. Pass journal entries in the books of Sudhatai assuming that on due date the bill is dishonoured and Sudhatai’s bank paid noting chargers Rs 100.

Answer 1

Case -A
                                            Books of Sudhatai
                                               Journal Entry

Date	Particulars	L.F.	Debit Amount Rs.	Credit Amount Rs.
2009 Sept.07	Chhayatai                      Dr.     To Sales A/c (Goods sold to Chhayatai)		10,000	10,000
Sept.07	Cash A/c                        Dr. Discount A/c                  Dr.       To Chhayatai A/c (Chhayatai paid Rs. 4,000 on her account @ cash discount of 2%)		3,920 80	4000
Sept.07	Bills Receivable A/c        Dr.      To Chhayatai A/c (Bill accepted by Chhayatai)		6,000	6,000
Sept.07	Bank A/c                        Dr. Discount Charges A/c    Dr.    To Bills Receivable A/c (Bill discounted with Bank at 12% per annum)		5,880 120	6000

Case - B
                                         Books Of Sudhatai
                                            Journal Entry

Date	Particulars	L.F.	Debit Amount Rs.	Credit Amount Rs.
2009 Sept.07	Chhayatai                     Dr.    To Sales A/c (Goods sold to Chhayatai)		10,000	10,000
Sept.07	Bank A/c                       Dr. Discount A/c                 Dr.     To Chhayatai A/c (Chhayatai paid Rs.4,000 on her account @ cash discount of 2%)		3,920 80	4,000
Sept. 07	Bills Receivable A/c       Dr.    To Chhayatai A/c (Bill Accepted by Chhayatai)		6,000	6,000
Sept . 07	Bank A/c                       Dr. Discount Charges A/c   Dr.     To Bills Receivable A/c (Bill discount with Bank at 12% per annum)		5,880 120	6,000
Nov.10	Chhayatai A/c               Dr.      To Bank A/c ( Discounted bill dishonoured and noting charges of Rs.100 Paid)		6,100	6,100