Rebate is a discount allowed by the drawer to the drawee when he accepts the payments of the bill before its due date.
If the drawee or the acceptor wishes to pay the amount of the bill before the date of maturity is called Retirement of a bill of exchange. In such a case, the drawer may allow him a concession called Rebate or Discount at certain rate calculated on the unexpired period of maturity of the bill.
Renewal of a bill of exchange refers to substituting the old bill with a new bill.
When the acceptor of a bill is not in a position to meet the bill on its due date, he/she may with the consent of the holder accept a fresh bill in place of the old bill after cancelling the old bill is called renewal of a bill.
Noting of a bill means getting the bill notified and protested on its dishonour with the Notary Public.
Acceptance of a bill of exchange refers to the drawee accepts the bill prepared by the drawer. He/she acknowledges the payment of debt.
There are two parties to a promissory note.
Maker of Drawer: Maker or Drawer is the person who makes or draws the promissory note to pay a certain amount as specified in the promissory note. He/she is also called the promise.
Drawee or payee: Drawee or Payee is the person in whose favour the promissory note is drawn. Also called Promise.
Dishonour of bill of exchange means that the acceptance is not paid on maturity. It means the drawee fails to make the payment on the date of maturity.
Maturity of a bill of exchange refers to the date on which the instrument becomes due for payment.
Commonly used negotiable instruments are:
There are three parties to a bill of exchange:
Drawer: Drawer is the maker of the bill of exchange. A seller/creditor that is entitled to receive money from the debtor can draw a bill of exchange upon the buyer/debtor.
Drawee: Drawee is the person on whom bill of exchange is drawn. Drawee is the purchaser or debtor of the goods upon whom the bill of exchange is drawn.
Payee: payee is the person to whom the payment is to be made. Payee may be the drawer himself or a third person.
Features of bill of exchange:
Basis |
Bill of Exchange |
Promissory Note |
Drawer |
It is drawn by the creditors |
It is drawn by the debtor |
Order or promise and parties |
It contains an order to make payment. There can be three parties to it, viz, the drawer, the drawee and the payee. |
It contains a promise to make payment. There are only two parties to it, viz, the drawer and the payee. |
According to the Negotiable Instruments Act 1881, a bill of exchange is defined as an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.
Features of a bill of exchange:
Samira Noida ` 20,000 April 01, 2015
Three months after date pay to me or my order, the sum of twenty thousand only, for value received.
Stamp
Accepted (Signed) (Signed) Samira Kumar Swati A15, Sec 62 01/04/2015 Noida D20, Sector 63, Noida To Swati D20, Sec. 63, Noida |
Here, Samira is the drawer and Swati is the Drawee. Since Swati has accepted the bill, she is the acceptor.
Specimen of a Bills Payable Book:
No. of Bill |
Date of Bill |
To Whom Given |
Drawer |
Payee |
Where payable |
Term |
Due Date |
L.F. |
₹ paid |
Date |
Cash Book Folio |
Remarks |
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Specimen of a Bills Receivable book:
No. of Bill |
Date Received |
Date of Bill |
From whom received |
Drawer |
Acceptor |
Where Payable |
Term |
Due date |
L.F. |
₹ |
Cash Book Folio |
Remarks |
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In the Books of Tanu Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2017 |
|
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|
|
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Jan 1 |
Bills Receivable A/c |
Dr. |
|
10,000 |
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To Harsh |
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|
10,000 |
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(Being acceptance received from Harsh for a month) |
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Jan 1 |
Bank A/c |
Dr. |
|
9,933 |
|
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Discount A/c |
Dr. |
|
67 |
|
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To Bills Receivable A/c |
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|
10,000 |
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(Being bill discounted with the bank at the rate of 8% per annum) |
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Feb 4 |
Harsh |
Dr. |
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10,000 |
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To Bank A/c |
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10,000 |
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(Being a cheque sent to Harsh on due date for paying of accommodation bill) |
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In the Books of Harsh Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2017 |
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|
|
|
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Jan 1 |
Tanu |
Dr. |
|
10,000 |
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To Bills Payable A/c |
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10,000 |
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(Being acceptance received for one month) |
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Feb 4 |
Bank A/c |
Dr. |
|
10,000 |
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To Tanu |
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10,000 |
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(Being cheque received from Tanu on due date) |
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Feb 4 |
Bills Payable A/c |
Dr. |
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10,000 |
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To Bank A/c |
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10,000 |
|
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(Being acceptance paid on maturity) |
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In the Books of Neha Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 1 |
Muskan |
Dr. |
|
20,000 |
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To Sales A/c |
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|
20,000 |
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(Being goods sold to Muskan) |
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Jan 1 |
Bills Receivable A/c |
Dr. |
|
20,000 |
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To Muskan |
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20,000 |
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(Being acceptance received) |
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Feb 4 |
Cash A/c |
Dr. |
|
19,800 |
|
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Rebate on Bill A/c |
Dr. |
|
200 |
|
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To Bills Receivable A/c |
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|
20,000 |
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(Being retired her acceptance and rebate allowed to her) |
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In the Books of Mukesh Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
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Jan 1 |
Purchase A/c |
Dr. |
|
20,000 |
|
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To Neha |
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20,000 |
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(Being goods purchased from Neha) |
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Jan 1 |
Neha |
Dr. |
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20,000 |
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To Bills Payable A/c |
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20,000 |
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(Being acceptance given) |
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Feb 4 |
Bills Payable A/c |
Dr. |
|
20,000 |
|
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To Cash A/c |
|
|
19,800 |
|
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To Rebate on Bill A/c |
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|
200 |
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(Being acceptance in favour of Neha retired and rebate received) |
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Bills Payable Book is maintained like a Bills Receivable book.
It is meant to record all the details, relating to the bills accepted by a person or a party, which are retained for being use in the future, in case of need.
The specimen of Bills Payable book:
No. of Bill |
Date of Bill |
To Whom Given |
Drawer |
Payee |
Where payable |
Term |
Due Date |
L.F. |
₹ paid |
Date |
Cash Book Folio |
Remarks |
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The posting from this books are made to the debit of the account of every creditor to whom acceptance has been given and the periodical total of the books is credited to the ‘Bills Payable Account’ in the ledger.
The bills payable account representing the liability of the acceptor in respect of bills accepted by him, always has a credit balance.
Bills Receivable book has been designed as a summary of information regarding a duly accepted bill received by a drawer. All the details of the bill-date, acceptor’s name, amount, term, place of payment, etc., are entered in the bills receivable book.
The Specimen of Bills Receivable Book:
No. of Bill |
Date Received |
Date of Bill |
From whom received |
Drawer |
Acceptor |
Where Payable |
Term |
Due date |
L.F. |
₹ |
Cash Book Folio |
Remarks |
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Features:
The question is presently out of syllabus.
When a bill of exchange is to be retired before the due date by mutual understanding between the drawer and the drawee. This happens when the drawee of the bill has funds at his disposal and makes a request to the drawer or holder to accept the payment of the bill before its maturity. If the holder agrees to do so, the bill is said to retired.
The retiring of a bill draws a curtain on the bill transactions before the expiry of its normal term. To encourage the retirement, the holder allows some discount called Rebate on bills for the period between date of retirement and maturity. The rebate is calculated at a certain rate of interest.
Following journal entries are recorded:
In the books of the drawer:
On the retiring the acceptance and rebate allowed:
Cash A/c |
Dr. |
Rebate on bills A/c |
Dr. |
To Bills Receivables A/c |
In the books of Drawee:
Bills Payable A/c |
Dr. |
Cash A/c |
Dr. |
To Rebate on Bills A/c |
Basis |
Bill of Exchange |
Promissory Note |
Drawer |
Creditor is the Drawer. |
Debtor is the Drawer. |
Order or Promise and Parties |
It contains an order to make payment. There can be three parties to it, viz, drawer, drawee and the payee. |
It contains a promise to make payment. There are only two parties to it, viz, drawer and the payee.
|
Acceptance |
It requires acceptance by the drawee or someone also on his behalf. |
It does not require any acceptance. |
Liability |
Liability of the drawer arises only if the acceptor does not pay. |
Promisor has the primary liability to pay. |
Notice |
In case of dishonour, due notice of dishonour is to be given by the holder to the drawer. |
No notice needs to be given in case of dishonour. |
Stamp |
Bills payable on demand need not to be stamped but otherwise stamps would be necessary. |
It has to be stamped in any case. |
Dishonour of a Bill means a situation when the acceptor of the bill refuses or is unable to pay the amount. In such a case, the holder of the bill can recover the amount from the Drawer or any of the previous endorsers. The holder of the bill may present the bill through a Notary Public and get the dishonour of the bill noted.
Noting will consist of the following:
The entries recorded for noting charges in the drawers book are as follows:
When drawer himself pays:
Drawee’s A/c |
Dr. |
To Cash A/c |
Where endorsee pays:
Drawee’s A/c |
Dr. |
To Endorsee A/c |
When the bank pays on discounted bill:
Drawee’s A/c |
Dr. |
To Bank A/c |
When the bank pays in the event of sending the bill for collection to the bank:
Drawee’s A/c |
Dr. |
To Bank A/c |
It may be noted that whosoever pays the noting charges, ultimately these have to be borne by the drawee.
Particulars | Debtors ₹ | Creditors ₹ |
Babu | 5,000 | ---- |
Chanderkala | 8,000 | ---- |
Kiran | 13,500 | |
Anita | 14,000 | |
Anju | ---- | 5,000 |
Sheiba | ---- | 12,000 |
Manju | ---- | 6,000 |
Bills Receivable Book:
Date of Bill |
Date Received |
From Whom |
Drawer Whom Received |
Acceptor |
Where |
Term payable |
Due Date |
L.F. |
₹ |
Cash Book Folio |
Remarks |
Jan 2 |
Jan 5 |
Babu |
Self |
Babu |
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2 Months |
Mar 5 |
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4,800 |
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Bills Payable Book:
Date of Bill |
To whom given |
Drawer |
Payee |
Where payable |
Term |
Due Date |
L.F |
₹ |
Date paid |
Cash Book Folio |
Remarks |
Jan 12 |
Sheiba |
Sheiba |
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2 Months |
Mar 15 |
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12,000 |
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Jan 25 |
Anju |
Anju |
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2 Months |
Apr 28 |
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5,000 |
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17,000 |
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Cash Book:
Date |
Particulars |
J.F. |
Cash |
Bank |
Date |
Particulars |
J.F. |
Cash |
Bank |
₹ | ₹ | ₹ | ₹ | ||||||
2017 |
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2015 |
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Jan 4 |
To Bills Receivable |
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4,750 |
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Jan 10 |
To Bills Receivable |
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7,900 |
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Jan 29 |
To Kiran |
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2,000 |
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Jan 31 |
By Balance c/d |
|
2,000 |
12,650 |
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2,000 |
12,650 |
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2,000 |
12,650 |
In the Books of Gautam Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
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2017 |
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Jan 5 |
Discount Allowed A/c |
Dr. |
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200 |
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To Babu |
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200 |
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(Being Babu’s acceptance received and allowed him discount ₹200) |
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Jan 4 |
Discount A/c |
Dr. |
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50 |
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To Bills Receivable A/c |
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50 |
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(Being Babu’s acceptance discounted with a discount of ₹50) |
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Jan 8 |
Bills Receivable A/c |
Dr. |
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8,000 |
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To chanderkala |
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8,000 |
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(Being promissory note from Chanderkala received) |
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Jan 10 |
Discount A/c |
Dr. |
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100 |
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To Bills Receivable A/c |
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100 |
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(Being Chanderkala’s promissory note discounted with bank at discount of ₹100) |
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Jan 22 |
Bills Receivable A/c |
Dr. |
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14,000 |
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To Anita |
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14,000 |
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(Being promissory note received from Anita) |
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Jan 23 |
Manju |
Dr. |
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14,000 |
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To Bills Receivable A/c |
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14,000 |
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(Being Anita’s promissory note endorsed to Manju) |
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Jan 29 |
Bills Receivable A/c |
Dr. |
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11,500 |
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To Kiran |
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11,500 |
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(Being promissory note from Karan received) |
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In the Books of Vibha Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
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2017 |
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Jan 1 |
Sudha |
Dr. |
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18,000 |
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To Sales A/c |
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18,000 |
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(Being goods sold to Sudha) |
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Jan 1 |
Bills Receivable A/c |
Dr. |
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18,000 |
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To Sudha |
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18,000 |
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(Being acceptance received) |
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Jan 1 |
Geeta |
Dr. |
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18,000 |
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To Bills Receivable A/c |
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18,000 |
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(Being acceptance of Sudha endorsed to Geeta) |
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Feb 27 |
Sudha |
Dr. |
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18,000 |
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To Geeta |
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18,000 |
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(Being acceptance of Sudha cancelled before maturity) |
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Feb 27 |
Geeta |
Dr. |
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18,000 |
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To Cash A/c |
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18,000 |
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(Being payment made to Geeta and bills received) |
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Feb 27 |
Bills Receivable A/c |
Dr. |
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18,200 |
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To Sudha |
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18,000 |
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To Interest A/c |
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200 |
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(Being new acceptance received with interest ₹200) |
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Mar 2 |
Cash A/c |
Dr. |
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18,200 |
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To Sudha |
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18,200 |
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(Being payment received on maturity) |
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In the Books of Rashmi Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
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2017 |
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Feb 14 |
Alka |
Dr. |
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7,500 |
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To Sales A/c |
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7,500 |
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(Being goods sold to Alka) |
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Feb 14 |
Cash A/c |
Dr. |
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500 |
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Bills Receivable A/c |
Dr. |
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7,000 |
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To Alka |
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7,500 |
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(Being acceptance received along with ₹500 cash) |
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Apr 10 |
Alka |
Dr. |
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7,000 |
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To Bills Receivable |
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7,000 |
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(Being bill cancelled before the due date) |
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Apr 10 |
Cash A/c |
Dr. |
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2,000 |
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To Alka |
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2,000 |
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(Being ₹ 2,000 received) |
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Apr 10 |
Alka |
Dr. |
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500 |
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To Interest A/c |
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500 |
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(Being interest of ₹500 due) |
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Apr 10 |
Bills Recievable A/c |
Dr. |
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5,500 |
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To Alka |
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5,500 |
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(Being acceptance received from Alka along with interest) |
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Jun 13 |
Cash A/c |
Dr. |
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5,500 |
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To Bills Receivable A/c |
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5,500 |
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(Being payment received on maturity) |
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Alka’s Account |
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Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
|
|
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Feb 14 |
To Sales A/c |
7,500 |
Feb 14 |
By Cash A/c |
500 |
Apr 10 |
To Bills Recievable A/c |
7,000 |
Feb 14 |
By Bills Receivable A/c |
7,000 |
Apr 10 |
To Interest A/c |
500 |
Apr 10 |
By Cash A/c |
2,000 |
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Apr 12 |
By Bills Recievable A/c |
5,500 |
|
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15,000 |
|
|
15,000 |
In the Books of Alka Journal Entries |
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Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2017 |
|
|
|
|
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Feb 14 |
Purchases A/c |
Dr. |
|
7,500 |
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To Rashmi |
|
|
7,500 |
|||
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(Being goods purchased from Rashmi) |
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Feb 14 |
Rashmi |
Dr. |
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7,500 |
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To Cash A/c |
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500 |
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To Bills Payable A/c |
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|
7,000 |
|||
|
(Being cash ₹ 500 and acceptable for ₹ 7,000 given) |
|
|
|
|||
Apr 10 |
Bills Payable A/c |
Dr. |
|
7,000 |
|
||
|
To Rashmi |
|
|
7,000 |
|||
|
(Being bill cancelled before the due date) |
|
|
|
|||
Apr 10 |
Rashmi |
Dr. |
|
2,000 |
|
||
|
To Cash A/c |
|
|
|
2,000 |
||
|
(Being ₹ 2,000 cash paid to her) |
|
|
|
|||
Apr 10 |
Interest A/c |
Dr. |
|
500 |
|
||
|
To Rashmi |
|
|
500 |
|||
|
(Being ₹ 500 interest due) |
|
|
|
|||
Apr 10 |
Rashmi |
Dr. |
|
5,500 |
|
||
|
To Bills Payable A/c |
|
|
5,500 |
|||
|
(Being acceptance given along with interest) |
|
|
|
|||
Jun 13 |
Bills Payable A/c |
Dr. |
|
5,500 |
|
||
|
To Cash A/c |
|
|
5,500 |
|||
|
(Being bills payable paid on due date) |
|
|
|
Rashmi’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Feb 14 |
To Cash A/c |
500 |
Feb 14 |
By Purchases |
7,500 |
Feb 14 |
To Bills Payable |
7,000 |
Apr 10 |
By Bills Payable |
7,000 |
Apr 10 |
To Cash A/c |
2,000 |
Apr 10 |
By Interest |
500 |
Apr 10 |
To Bills Payable |
5,500 |
|
|
|
|
|
15,000 |
|
|
15,000 |
In the Books of Gaurav Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
2017 |
|
|
|
|
||
Feb 1 |
Kapil |
Dr. |
|
21,000 |
|
|
|
To Sales A/c |
|
|
21,000 |
||
|
(Being goods sold to Kapil) |
|
|
|
||
Feb 1 |
Bills Receivable A/c |
Dr. |
|
21,000 |
|
|
|
To Kapil |
|
|
21,000 |
||
|
(Being acceptance received from Kapil) |
|
|
|
||
Feb 5 |
Bill Sent for Collection |
Dr. |
|
21,000 |
|
|
|
To Bills Receivable A/c |
|
|
21,000 |
||
|
(Being bill sent to the bank for collection) |
|
|
|
||
Mar 4 |
Kapil |
Dr. |
|
21,100 |
|
|
|
To Bill Sent for Collection |
|
|
21,000 |
||
|
To Bank A/c |
|
|
100 |
||
|
(Being bill dishonoured on due date and noting charges paid) |
|
|
|
In the Books of Kapil Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2017 |
|
|
|
|
|
Feb 1 |
Purchase A/c |
Dr. |
|
21,000 |
|
|
To Gaurav |
|
|
21,000 |
|
|
(Being goods purchased from Gaurav on credit) |
|
|
|
|
Feb 1 |
Gaurav |
Dr. |
|
21,000 |
|
|
To Bills Payable A/c |
|
|
21,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 4 |
Bills Payable A/c |
Dr. |
|
21,000 |
|
|
Noting Charges A/c |
Dr. |
|
100 |
|
|
To Gaurav |
|
|
21,100 |
|
|
(Being bill dishonoured and noting charges due) |
|
|
|
In the Books of Lilly Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
2017 |
|
|
|
|
||
Mar 1 |
Methew |
Dr. |
|
12,000 |
|
|
|
To Sales A/c |
|
|
12,000 |
||
|
(Being goods sold to Methew) |
|
|
|
||
Mar 1 |
Bills Receivable |
Dr. |
|
12,000 |
|
|
|
To Methew |
|
|
12,000 |
||
|
(Being Methew’s acceptance payable after two months received) |
|
|
|
||
Mar 1 |
Bank A/c |
Dr. |
|
11,820 |
|
|
|
Discount A/c |
Dr. |
|
180 |
|
|
|
To Bills Receivable |
|
|
12,000 |
||
|
(Being Methew’s bill discounted at 9% per annum) |
|
|
|
||
May 3 |
Methew A/c |
Dr. |
|
12,045 |
|
|
|
To Bank A/c |
|
|
|
12,045 |
|
|
(Being Methew’s acceptance dishonoured, bank paid ₹45 as noting charges) |
|
|
|
||
May 8 |
Methew |
Dr. |
|
241 |
|
|
|
To Interest A/c |
|
|
241 |
||
|
(Being interest at the rate of 12% credited to Methew on account of bill dishonoured) |
|
|
|
||
May 8 |
Bank A/c |
Dr. |
|
12,286 |
|
|
|
To Methew |
|
|
12,286 |
||
|
(Being cheque received from Methew for the amount due from him) |
|
|
|
Methew’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Mar 1 |
To Sales A/c |
12,000 |
Mar 1 |
By Bills Receivable |
12,000 |
May 3 |
To Bank A/c |
12,045 |
May 8 |
By Bank |
12,286 |
May 8 |
To Interest |
241 |
|
|
|
|
|
24,286 |
|
|
24,286 |
In the Books of Methew Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
2017 |
|
|
|
|
||
Mar 1 |
Purchase A/c |
Dr. |
|
12,000 |
|
|
|
To Lilly |
|
|
12,000 |
||
|
(Being goods bought from Lilly) |
|
|
|
||
Mar 1 |
Lilly |
Dr. |
|
12,000 |
|
|
|
To Bills Payable A/c |
|
|
12,000 |
||
|
(Being Lilly’s acceptance payable after two months accepted) |
|
|
|
||
May 3 |
Bills Payable |
Dr. |
|
12,000 |
|
|
|
Noting Charges A/c |
Dr. |
|
45 |
|
|
|
To Lilly |
|
|
12,045 |
||
|
(Being bill drawn by Lilly dishonoured) |
|
|
|
||
May 8 |
Interest A/c |
Dr. |
|
241 |
|
|
|
To Lilly |
|
|
|
241 |
|
|
(Being interest charged at the rate of 12% from Lilly on account of bill dishonoured) |
|
|
|
||
May 8 |
Lilly |
Dr. |
|
12,286 |
|
|
|
To Bank A/c |
|
|
12,286 |
||
|
(Being amount paid to Lilly through cheque) |
|
|
|
Lilly’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Mar 1 |
To Bills Payable |
12,000 |
Mar 1 |
By Purchase A/c |
12,000 |
May 9 |
To Bank |
12,286 |
May 3 |
By Bills Payable |
12,000 |
|
|
|
May 3 |
By Noting Charges |
45 |
|
|
|
May 8 |
By Interest |
241 |
|
|
24,286 |
|
|
24,286 |
Note: In this question, there is a contradiction. As per the discounting rule–Bank is regarded as the holder of the bill. It is the bank who presents the bill for payment and also pays the noting charges on behalf of the drawer (Lilly).
However, as per the question, Lilly, who is presenting, discounting the bill and also paying the noting charges ₹45. Thus, we have assumed that it is bank and not Lilly who presents, discounts and pays the noting charges in case of dishonour of bill.
In the Books of Sharma Journal Entries |
|||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2017 |
|
|
|
|
|||
Feb 2 |
Verma |
Dr. |
|
17,500 |
|
||
|
To Sales A/c |
|
|
17,500 |
|||
|
(Being goods sold to Verma) |
|
|
|
|||
Feb 2 |
Cash A/c |
Dr. |
|
2,500 |
|
||
|
Bills Receivable A/c |
Dr. |
|
15,000 |
|
||
|
To Verma |
|
|
17,500 |
|||
|
(Being ₹2,500 received and acceptance for ₹15,000 received) |
|
|
|
|||
Feb 2 |
Gupta |
Dr. |
|
15,400 |
|
||
|
To Bills Receivable A/c |
|
|
15,000 |
|||
|
To Discount A/c |
|
|
400 |
|||
|
(Being promissory note of Verma endorsed to Gupta for ₹15,400) |
|
|
|
|||
Apr 5 |
Discount Received A/c |
Dr. |
|
400 |
|
||
|
Verma |
Dr. |
|
15,050 |
|
||
|
To Gupta |
|
|
|
15,450 |
||
|
(Being promissory note dishonoured on maturity) |
|
|
|
|||
Apr 6 |
Internet A/c |
Dr. |
|
50 |
|
||
|
To Gupta |
Dr. |
|
|
50 |
||
|
(Being interest of ₹50 debited to Gupta) |
|
|
|
|||
Apr 6 |
Gupta A/c |
Dr. |
|
15,500 |
|
||
|
To Bank A/c |
|
|
15,500 |
|||
|
(Being Gupta’s account settled) |
|
|
|
|||
Apr 8 |
Bank A/c |
Dr. |
|
15,050 |
|
||
|
To Verma |
|
|
15,050 |
|||
|
(Being cheque received from Verma for the amount due from him) |
|
|
|
Verma’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Feb 2 |
To Sales A/c |
17,500 |
Feb 2 |
By Cash A/c |
2,500 |
Apr 6 |
To Gupta |
15,050 |
Feb 2 |
By Bills Receivable |
15,000 |
|
|
|
Apr 6 |
By Bank A/c |
15,050 |
|
|
32,550 |
|
|
32,550 |
Gupta’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Feb 2 |
To Bills Receivable |
15,000 |
Apr 1 |
By Balance b/d |
15,400 |
Feb 2 |
To Discount Received |
400 |
Apr 6 |
By Verma |
15,050 |
Feb 2 |
To Bank |
15,500 |
Apr 6 |
By Discount Received |
400 |
|
|
|
Apr 1 |
By Interest |
50 |
|
|
30,900 |
|
|
30,900 |
In the Books of Verma Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
2017 |
|
|
|
|
||
Feb 2 |
Purchase A/c |
Dr. |
|
17,500 |
|
|
|
To Sharma |
|
|
17,500 |
||
|
(Being goods purchased) |
|
|
|
||
Feb 2 |
Sharma |
Dr. |
|
17,500 |
|
|
|
To Cash A/c |
|
|
2,500 |
||
|
To Bills Payable A/c |
|
|
15,000 |
||
|
(Being cash ₹2,500 and acceptance for ₹15,000 given to Sharma) |
|
|
|
||
Apr 6 |
Bills Payable A/c |
Dr. |
|
15,000 |
|
|
|
Noting Charges A/c |
Dr. |
|
50 |
|
|
|
To Sharma |
|
|
15,050 |
||
|
(Being promissory note dishonoured on maturity) |
|
|
|
||
Apr 6 |
Sharma |
Dr. |
|
15,050 |
|
|
|
To Bank A/c |
|
|
|
15,050 |
|
|
(Being payment made to Sharma with interest of ₹450) |
|
|
|
Sharma’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Feb 2 |
To Cash A/c |
2,500 |
Feb 2 |
By Purchase A/c |
17,500 |
Feb 2 |
To Bills Payable |
15,000 |
Feb 2 |
By Bills Payable |
15,000 |
Apr 6 |
To Bank A/c |
15,050 |
Apr 6 |
By Noting Charges |
50 |
|
|
32,550 |
|
|
32,550 |
In the Books of Gupta Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
2017 |
|
|
|
|
||
Feb 2 |
Bills Receivable A/c |
Dr. |
|
15,000 |
|
|
|
Discount Allowed A/c |
Dr. |
|
400 |
|
|
|
To Sharma |
|
|
15,400 |
||
|
(Being promissory note received from Sharma in full settlement) |
|
|
|
||
Apr 6 |
Sharma |
Dr. |
|
15,450 |
|
|
|
To Bills Receivable |
|
|
15,000 |
||
|
To Discount Allowed |
|
|
400 |
||
|
To Bank |
|
|
50 |
||
|
(Being promissory note received from Sharma dishonoured) |
|
|
|
||
Apr 6 |
Sharma |
Dr. |
|
50 |
|
|
|
To Interest A/c |
|
|
50 |
||
|
(Being interest on account of promissory note dishonoured) |
|
|
|
||
Apr 6 |
Bank A/c |
Dr. |
|
15,500 |
|
|
|
To Sharma |
|
|
|
15,500 |
|
|
(Being cheque received from Sharma) |
|
|
|
In the Books of Asha Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
2017 |
|
|
|
|
||
Mar 2 |
Nisha |
Dr. |
|
19,000 |
|
|
|
To Sales A/c |
|
|
19,000 |
||
|
(Being goods sold to Nisha) |
|
|
|
||
Mar 2 |
Cash A/c |
Dr. |
|
4,000 |
|
|
|
Bills Receivable A/c |
Dr. |
|
15,000 |
|
|
|
To Nisha |
|
|
19,000 |
||
|
(Being ₹4,000 cash and acceptance for ₹15,000 received) |
|
|
|
||
Mar 2 |
Bank A/c |
Dr. |
|
14,625 |
|
|
|
Discount A/c |
Dr. |
|
375 |
|
|
|
To Bills Receivable |
|
|
15,000 |
||
|
(Being bill discounted by bank) |
|
|
|
||
Jun 5 |
Nisha |
Dr. |
|
15,030 |
|
|
|
To Bank A/c |
|
|
|
15,030 |
|
|
(Being bill dishonoured on due date and noting charges paid) |
|
|
|
In the Books of Nisha Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2017 |
|
|
|
|
|
Mar 2 |
Purchases A/c |
Dr. |
|
19,000 |
|
|
To Asha |
|
|
19,000 |
|
|
(Being goods purchased) |
|
|
|
|
Mar 2 |
Asha |
Dr. |
|
19,000 |
|
|
To Cash A/c |
|
|
4,000 |
|
|
To Bills Payable A/c |
|
|
15,000 |
|
|
(Being ₹4,000 cash and acceptance for ₹15,000 given to Asha) |
|
|
|
|
Jun 5 |
Bills Payable A/c |
Dr. |
|
15,000 |
|
|
Noting Charges A/c |
Dr. |
|
30 |
|
|
To Asha |
|
|
15,030 |
|
|
(Being bill dishonoured and noting charges paid) |
|
|
|
In the Books of Abdulla Journal Entries |
|||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2017 |
|
|
|
|
|||
Jan 17 |
Tahir |
Dr. |
|
18,000 |
|
||
|
To Sales A/c |
|
|
18,000 |
|||
|
(Being goods sold to Tahir) |
|
|
|
|||
Jan 17 |
Bills Receivable A/c |
Dr. |
|
18,000 |
|
||
|
To Tahir |
|
|
18,000 |
|||
|
(Being acceptance received) |
|
|
|
|||
Mar 4 |
Tahir |
Dr. |
|
18,040 |
|
||
|
To Bills Receivable A/c |
|
|
18,000 |
|||
|
To Cash A/c |
|
|
40 |
|||
|
(Being bill dishonoured and noting charges due to Tahir) |
|
|
|
|||
Mar 7 |
Tahir |
Dr. |
|
660 |
|
||
|
To Interest A/c |
|
|
|
660 |
||
|
(Being interest due to Tahir) |
|
|
|
|||
Mar 12 |
Cash A/c |
Dr. |
|
18,700 |
|
||
|
To Tahir |
|
|
18,700 |
|||
|
(Being payment received from Tahir with interest) |
|
|
|
Tahir’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Jan 17 |
To Sales |
18,000 |
Jan 17 |
By Bills Receivable |
18,000 |
Mar 7 |
To Bills Receivable |
18,000 |
Mar 12 |
By Cash |
18,700 |
Mar 7 |
To Cash |
40 |
|
|
|
Mar 7 |
To Interest |
660 |
|
|
|
|
|
36,700 |
|
|
36,700 |
In the Books of Tahir Journal Entries |
|||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2017 |
|
|
|
|
|||
Jan 12 |
Purchase A/c |
Dr. |
|
18,000 |
|
||
|
To Abdulla |
|
|
18,000 |
|||
|
(Being goods purchased from Abdulla) |
|
|
|
|||
Jan 17 |
Abdulla |
Dr. |
|
18,000 |
|
||
|
To Bills Payable A/c |
|
|
18,000 |
|||
|
(Being acceptance given) |
|
|
|
|||
Mar 7 |
Bills Payable A/c |
Dr. |
|
18,000 |
|
||
|
Noting Charges A/c |
Dr. |
|
40 |
|
||
|
To Abdulla |
|
|
18,040 |
|||
|
(Being bill dishonoured and noting charges paid) |
|
|
|
|||
Mar 7 |
Interest A/c |
Dr. |
|
660 |
|
||
|
To Abdulla |
|
|
|
660 |
||
|
(Being interest due to Abdulla) |
|
|
|
|||
Mar 9 |
Abdulla |
Dr. |
|
18,700 |
|
||
|
To Cash A/c |
|
|
18,700 |
|||
|
(Being payment made to Abdulla with interest) |
|
|
|
Abdulla’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2017 |
|
|
2017 |
|
|
Jan 17 |
To Bills Payable |
18,000 |
Jan 17 |
By Purchase A/c |
18,000 |
Mar 17 |
To Cash A/c |
18,700 |
Mar 4 |
By Bills Payable |
18,000 |
|
|
|
Mar 4 |
By Noting Charges |
40 |
|
|
|
Mar 9 |
By Interest |
660 |
|
|
36,700 |
|
|
36,700 |
When the bill was retained by Kamal till the date of its maturity:
In the Books of Kamal Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 15 |
Vimal |
Dr. |
|
25,000 |
|
|
To Sales A/c |
|
|
25,000 |
|
|
(Being goods sold to Vimal) |
|
|
|
|
Jan 15 |
Bills Receivable A/c |
Dr. |
|
25,000 |
|
|
To Vimal |
|
|
25,000 |
|
|
(Being acceptance received) |
|
|
|
|
Mar 18 |
Vimal |
Dr. |
|
25,000 |
|
|
To Bills Receivable A/c |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was immediately discounted by Kamal at the rate of 6%:
In the Books of kamal Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
Jan 15 |
Vimal |
Dr. |
|
25,000 |
|
|
|
To Sales A/c |
|
|
25,000 |
||
|
(Being goods sold to Vimal) |
|
|
|
||
Jan 15 |
Bill Receivable A/c |
Dr. |
|
25,000 |
|
|
|
To Vimal |
|
|
25,000 |
||
|
(Being acceptance received) |
|
|
|
||
Jan 15 |
Bank A/c |
Dr. |
|
24,750 |
|
|
|
Discount A/c |
Dr. |
|
250 |
|
|
|
To Bills Receivable A/c |
|
|
25,000 |
||
|
(Being bill discounted at the rate of 6% per annum) |
|
|
|
||
Mar 18 |
Vimal |
Dr. |
|
25,000 |
|
|
|
To Bank A/c |
|
|
25,000 |
||
|
(Being bill dishonoured on due date) |
|
|
|
||
When the bill was endorsed to Sharad:
In the Books of kamal Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
Jan 15 |
Vimal |
Dr. |
|
25,000 |
|
|
|
To Sales A/c |
|
|
25,000 |
||
|
(Being goods sold to Vimal) |
|
|
|
||
Jan 15 |
Bills Receivable A/c |
Dr. |
|
25,000 |
|
|
|
To Vimal |
|
|
25,000 |
||
|
(Being acceptance received) |
|
|
|
||
Jan 15 |
Sharad |
Dr. |
|
25,000 |
|
|
|
To Bills Receivable A/c |
|
|
25,000 |
||
|
(Being bill endorsed to Sharad) |
|
|
|
||
May 18 |
Vimal |
Dr. |
|
25,000 |
|
|
|
To Sharad |
|
|
25,000 |
||
|
(Being bill dishonoured on made) |
|
|
|
||
When the bill was sent for collection:
In the Books of kamal Journal Entries |
||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||
Jan 15 |
Vimal |
Dr. |
|
25,000 |
|
|
|
To Sales A/c |
|
|
25,000 |
||
|
(Being goods sold to Vimal) |
|
|
|
||
Jan 15 |
Bills Receivable A/c |
Dr. |
|
25,000 |
|
|
|
To Vimal |
|
|
25,000 |
||
|
(Being acceptance received) |
|
|
|
||
Mar 13 |
Bill Sent for Collection |
Dr. |
|
25,000 |
|
|
|
To Bills Receivable |
|
|
25,000 |
||
|
(Being bill sent for collection) |
|
|
|
||
Mar 18 |
Vimal |
Dr. |
|
25,000 |
|
|
|
To Bill Sent for Collection |
|
|
25,000 |
||
|
(Being bill dishonoured on due date) |
|
|
|
||
When the bill was retained by Kamal till the date of its maturity:
In the Books of Vimal Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 15 |
Purchases A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being goods purchased from Kamal) |
|
|
|
|
Jan 15 |
Kamal |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 18 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was immediately discounted by Kamal at the rate of 6%:
In the Books of Vimal Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 15 |
Purchase A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being goods purchased from Kamal) |
|
|
|
|
Jan 15 |
Kamal |
Dr. |
|
25,000 |
|
|
To Bills payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 18 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To kamal |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was endorsed to Sharad:
In the Books of Vimal Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 15 |
Purchase A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being goods purchased from Kamal) |
|
|
|
|
Jan 15 |
Kamal |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 18 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was sent for collection:
In the Books of Vimal Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 15 |
Purchase A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being goods purchased from Kamal) |
|
|
|
|
Jan 15 |
Kamal |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 18 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Kamal |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
In the Books of Raghu Journal Entries |
||||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||||
2016 |
|
|
|
|
||||
Jan 15 |
Devendra |
Dr. |
|
35,000 |
|
|||
|
To Sales A/c |
|
|
35,000 |
||||
|
(Being goods sold to him) |
|
|
|
||||
Jan 16 |
Bills Receivables 1st |
Dr. |
|
5,000 |
|
|||
|
Bills Receivables 2nd |
Dr. |
|
20,000 |
|
|||
|
Bills Receivables 3rd |
Dr. |
|
10,000 |
|
|||
|
To Devendra |
|
|
35,000 |
||||
|
(Being three acceptances received from Devendra) |
|
|
|
||||
Jan 15 |
Dewan |
Dr. |
|
5,200 |
|
|||
|
To Bills Receivable 1st A/c |
|
|
5,000 |
||||
|
To Discount Received A/c |
|
|
200 |
||||
|
(Being acceptance of Devendra endorsed to Dewan for ₹ 5,200) |
|
|
|
||||
Jan 15 |
Bank A/c |
Dr. |
|
19,700 |
|
|||
|
Discount A/c |
Dr. |
|
300 |
|
|||
|
To Bills Receivables 2nd A/c |
|
|
20,000 |
||||
|
(Being bill discounted by the bank at the rate of 6%) |
|
|
|
||||
Apr 18 |
Devendra |
Dr. |
|
20,030 |
|
|||
|
To Bank A/c |
|
|
20,030 |
||||
|
(Being bill dishonoured and noting charges paid by the bank ₹ 30) |
|
|
|
||||
May 14 |
Bill Sent for Collection |
Dr. |
|
10,000 |
|
|||
|
To Bills Receivable 3rd |
|
|
10,000 |
||||
|
(Being bill sent for the collection) |
|
|
|
||||
May 18 |
Devendra |
Dr. |
|
10,200 |
|
|||
|
To Bill Sent for Collection |
|
|
10,000 |
||||
|
To Bank A/c |
|
|
200 |
||||
|
(Being bill sent for collection dishonoured and bank paid noting charges of ₹ 200) |
|
|
|
||||
May 23 |
Devendra |
Dr. |
|
1,000 |
|
|||
|
To Interest A/c |
|
|
1,000 |
||||
|
(Being interest due to Devendra) |
|
|
|
||||
May 23 |
Cash A/c |
Dr. |
|
31,230 |
|
|||
|
To Devendra |
|
|
31,230 |
||||
|
(Being final payment received) |
|
|
|
||||
Devendra’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Jan 15 |
To Sales A/c |
35,000 |
Jan 15 |
By Bill Receivable 1st |
5,000 |
Apr 18 |
To Bank |
20,030 |
Jan 15 |
By Bill Receivable 2nd |
20,000 |
May 18 |
To Bill Sent for Collection |
10,000 |
Jan 15 |
By Bill Receivable 3rd |
10,000 |
May 18 |
To Bank |
200 |
May 23 |
By Cash |
31,230 |
|
|
66,230 |
|
|
66,230 |
In the Books of Devendra Journal Entries |
|||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2016 |
|
|
|
|
|||
Jan 15 |
Purchase A/c |
Dr. |
|
35,000 |
|
||
|
To Raghu |
|
|
35,000 |
|||
|
(Being goods purchased from Raghu) |
|
|
|
|||
Jan 15 |
Raghu |
Dr. |
|
35,000 |
|
||
|
To Bills Payable 1st |
|
|
5,000 |
|||
|
To Bills Payable 2nd |
|
|
20,000 |
|||
|
To Bills Payable 3rd |
|
|
10,000 |
|||
|
(Being three acceptance given to Raghu) |
|
|
|
|||
Feb 18 |
Bills Payable A/c |
Dr. |
|
5,000 |
|
||
|
To Cash |
|
|
5,000 |
|||
|
(Being bill dishonoured on due date) |
|
|
|
|||
Apr 8 |
Bills Payable A/c |
Dr. |
|
20,000 |
|
||
|
Noting Charges A/c |
Dr. |
|
30 |
|
||
|
To Raghu |
|
|
20,030 |
|||
|
(Being bill dishonoured noting charges paid by Raghu) |
|
|
|
|||
May 18 |
Bills Payable A/c |
Dr. |
|
10,000 |
|
||
|
Noting Charges A/c |
|
|
200 |
|
||
|
To Raghu |
|
|
10,200 |
|||
|
(Being bill dishonoured and noting charges paid by bank) |
|
|
|
|||
May 23 |
Interest A/c |
Dr. |
|
1,000 |
|
||
|
To Raghu |
|
|
1,000 |
|||
|
(Being interest due to Raghu) |
|
|
|
|||
May 23 |
Cash A/c |
Dr. |
|
31,230 |
|
||
|
To Bank Loan A/c |
|
|
31,230 |
|||
|
(Being short term bank loan taken for the purpose) |
|
|
|
|||
May 23 |
Raghu |
Dr. |
|
31,230 |
|
||
|
To Cash A/c |
|
|
31,230 |
|||
|
(Being payment made to Raghu) |
|
|
|
|||
|
Raghu’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Jan 15 |
To Bills Payable 1st |
5,000 |
Jan 15 |
By Purchases |
35,000 |
Jan 15 |
To Bills Payable 2nd |
20,000 |
Apr 18 |
By Bills Payable 2nd |
20,000 |
Jan 15 |
To Bills Payable 3rd |
10,000 |
Apr 18 |
By Noting Charges |
30 |
May 23 |
To Cash |
31,230 |
May 18 |
By Bills Payable 3rd |
10,000 |
|
|
|
May 19 |
By Noting Charges |
200 |
|
|
|
May 18 |
By Interest |
1,000 |
|
|
66,230 |
|
|
66,230 |
In the Books of Dewan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 15 |
Bills Receivable A/c |
Dr. |
|
5,000 |
|
|
Discount Allowed A/c |
Dr. |
|
200 |
|
|
To Raghu |
|
|
5,200 |
|
|
(Being bills receivable received from Raghu and allowed with discount) |
|
|
|
|
Feb 18 |
Cash A/c |
Dr. |
|
5,000 |
|
|
To Bills Receivable A/c |
|
|
5,000 |
|
|
(Being bill met on maturity) |
|
|
|
Note: In this question, there is no information regarding honour of the first bill of ₹5,000. Therefore, it has been assumed that the first bill has been met on maturity.
In the Books of Ravi Journal Entries |
||||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||||
2016 |
|
|
|
|
||||
Feb 13 |
Sudershan |
Dr. |
|
40,000 |
|
|||
|
To Sales A/c |
|
|
40,000 |
||||
|
(Being goods sold to Sudershan) |
|
|
|
||||
Feb 13 |
Bills Receivable 1st |
Dr. |
|
5,000 |
|
|||
|
Bills Receivable 2nd |
Dr. |
|
10,000 |
|
|||
|
Bills Receivable 3rd |
Dr. |
|
12,000 |
|
|||
|
Bills Receivable 4th |
Dr. |
|
13,000 |
|
|||
|
To Sudershan |
|
|
40,000 |
||||
|
(Being four acceptances received from Sudershan) |
|
|
|
||||
Feb 13 |
Bank A/c |
Dr. |
|
4,975 |
|
|||
|
Discount A/c |
Dr. |
|
25 |
|
|||
|
To Bills Receivable 1st A/c |
|
|
5,000 |
||||
|
(Being 1st bill discounted with the bank at the rate of 6%) |
|
|
|
||||
Feb 13 |
Mustaq |
Dr. |
|
10,200 |
|
|||
|
To Bills Receivables 2nd |
|
|
10,000 |
||||
|
To Discount Received A/c |
|
|
200 |
||||
|
(Being 2nd acceptance of Sudershan endorsed to Mustaq or ₹10,200) |
|
|
|
||||
Mar 3 |
Bill Sent for Collection |
Dr. |
|
13,000 |
|
|||
|
To Bills Receivable 4th A/c |
|
|
13,000 |
||||
|
(Being bill sent for collection) |
|
|
|
||||
Mar 7 |
Sudershan |
Dr. |
|
13,000 |
|
|||
|
To Bill Sent for Collection |
|
|
13,000 |
||||
|
(Being bill sent to the bank for collection was dishonoured) |
|
|
|
||||
Mar 7 |
Sudershan |
Dr. |
|
81 |
|
|||
|
To Interest A/c |
|
|
81 |
||||
|
(Being interest at the rate of 12% due for 19 days) |
|
|
|
||||
Mar 10 |
Cash A/c |
Dr. |
|
13,081 |
|
|||
|
To Sudershan |
|
|
13,081 |
||||
|
(Being cash received from Sudershan) |
|
|
|
||||
Mar 16 |
Sudershan |
Dr. |
|
5,000 |
|
|||
|
To Bank A/c |
|
|
5,000 |
||||
|
(Being first bill dishonoured) |
|
|
|
||||
Mar 16 |
Sudershan |
Dr. |
|
50 |
|
|||
|
To Interest A/c |
|
|
50 |
||||
|
(Being interest at the rate of 12% due for one month) |
|
|
|
||||
Mar 19 |
Cash A/c |
Dr. |
|
5,050 |
|
|||
|
To Sudershan |
|
|
5,050 |
||||
|
(Being payment received from Sudershan in final settlement) |
|
|
|
||||
Mar 28 |
Sudershan |
Dr. |
|
10,000 |
|
|||
|
Discount A/c |
Dr. |
|
200 |
|
|||
|
To Mustaq |
|
|
10,200 |
||||
|
(Being bill dishonoured on due date and discounted) |
|
|
|
||||
Mar 28 |
Sudershan |
Dr. |
|
132 |
|
|||
|
To Interest A/c |
|
|
132 |
||||
|
(Being interest at the rate of 12% due) |
|
|
|
||||
Apr 1 |
Cash A/c |
Dr. |
|
10,132 |
|
|||
|
To Sudershan |
|
|
10,132 |
||||
|
(Being payment received) |
|
|
|
||||
May 16 |
Sudershan |
Dr. |
|
12,000 |
|
|||
|
To Bills Receivable 3rd A/c |
|
|
12,000 |
||||
|
(Being bill dishonoured on due date) |
|
|
|
||||
May 16 |
Sudershan |
Dr. |
|
360 |
|
|||
|
To Interest A/c |
|
|
360 |
||||
|
(Being interest due at the rate of 12% per annum) |
|
|
|
||||
May 19 |
Cash A/c |
Dr. |
|
12,360 |
|
|||
|
To Sudershan |
|
|
12,360 |
||||
|
(Being cash received from Sudershan) |
|
|
|
Sudershan’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Feb 13 |
To Sales A/c |
40,000 |
Feb 13 |
By Bills Receivable 1st A/c |
5,000 |
Mar 7 |
To Bill sent for collection |
13,000 |
Feb 13 |
By Bills Receivable 2nd A/c |
10,000 |
Mar 7 |
To Interest A/c |
81 |
Feb 13 |
By Bills Receivable 3rd A/c |
12,000 |
Mar 16 |
To Bank A/c |
5,000 |
Feb 13 |
By Bills Receivable 4th A/c |
13,000 |
Mar 16 |
To Interest A/c |
50 |
Feb 13 |
By Cash A/c |
13,081 |
Mar 28 |
To Mustaq |
10,000 |
Mar 19 |
By Cash A/c |
5,050 |
Mar 28 |
To Interest A/c |
132 |
Mar 19 |
By Cash A/c |
10,132 |
May 16 |
To Bills Receivable 3rd |
12,000 |
Apr 1 |
By Cash A/c |
12,360 |
May 19 |
To Interest |
360 |
May 19 |
|
|
|
|
80,623 |
|
|
80,623 |
|
|
|
|
|
|
|
|
|
|
|
|
Mustaq’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Feb 13 |
To Bills Receivable A/c |
10,000 |
Mar 28 |
To Sudershan |
10,000 |
Feb 13 |
To Discount Received A/c |
200 |
Mar 28 |
To Discount Received A/c |
200 |
|
|
10,200 |
|
|
10,200 |
In the Books of Sudershan Journal Entries |
||||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
||||
2016 |
|
|
|
|
||||
Feb 13 |
Purchases A/c |
Dr. |
|
40,000 |
|
|||
|
To Ravi |
|
|
40,000 |
||||
|
(Being goods purchased) |
|
|
|
||||
Feb 13 |
Ravi |
Dr. |
|
40,000 |
|
|||
|
To Bills Payable 1st |
|
|
5,000 |
||||
|
To Bills Payable 2nd |
|
|
10,000 |
||||
|
To Bills Payable 3rd |
|
|
12,000 |
||||
|
To Bills Payable 4th |
|
|
13,000 |
||||
|
(Being four acceptance given) |
|
|
|
||||
Mar 7 |
Bills Payable 4th A/c |
Dr. |
|
13,000 |
|
|||
|
To Ravi |
|
|
13,000 |
||||
|
(Being bill dishonoured on maturity) |
|
|
|
||||
Mar 7 |
Interest A/c |
Dr. |
|
81 |
|
|||
|
To Ravi |
|
|
81 |
||||
|
(Being interest at the rate of 12% due) |
|
|
|
||||
Mar 10 |
Ravi |
Dr. |
|
13,081 |
|
|||
|
To Cash A/c |
|
|
13,081 |
||||
|
(Being payment made to Ravi) |
|
|
|
||||
Mar 16 |
Bills payable A/c |
Dr. |
|
5,000 |
|
|||
|
To Ravi |
|
|
5,000 |
||||
|
(Being bill dishonoured on due date) |
|
|
|
||||
Mar 16 |
Interest A/c |
Dr. |
|
50 |
|
|||
|
To Ravi |
|
|
50 |
||||
|
(Being interest at the rate of 12% due) |
|
|
|
||||
Mar 19 |
Ravi |
Dr. |
|
5,050 |
|
|||
|
To Cash A/c |
|
|
5,050 |
||||
|
(Being payment made to Ravi) |
|
|
|
||||
Mar 28 |
Bills Payable 2nd A/c |
Dr. |
|
10,000 |
|
|||
|
To Ravi |
|
|
10,000 |
||||
|
(Being bill dishonoured on due date) |
|
|
|
||||
Mar 28 |
Interest A/c |
Dr. |
|
132 |
|
|||
|
To Ravi |
|
|
132 |
||||
|
(Being interest due to Ravi) |
|
|
|
||||
Apr 10 |
Ravi |
Dr. |
|
10,132 |
|
|||
|
To Cash A/c |
|
|
10,132 |
||||
|
(Being payment made to Ravi) |
|
|
|
||||
May 16 |
Bills Payable 3rd |
Dr. |
|
12,000 |
|
|||
|
To Ravi |
|
|
12,000 |
||||
|
(Being bill dishonoured on due date) |
|
|
|
||||
May 16 |
Interest A/c |
Dr. |
|
360 |
|
|||
|
To Ravi |
|
|
360 |
||||
|
(Being interest due at the rate of 12% per annum) |
|
|
|
||||
May 19 |
Ravi |
Dr. |
|
12,360 |
|
|||
|
To Cash A/c |
|
|
12,360 |
||||
|
(Being payment made to Ravi) (Being bill dishonoured on due date and discount cancelled) |
|
|
|
In the Books of Mustaq Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 13 |
Bills Receivable 2nd |
Dr. |
|
10,000 |
|
|
Discount Allowed A/c |
Dr. |
|
200 |
|
|
To Ravi |
|
|
10,200 |
|
|
(Being acceptance received) |
|
|
|
|
Mar 28 |
Ravi |
Dr. |
|
10,200 |
|
|
To Bills Receivable |
|
|
10,000 |
|
|
To Discount Received |
|
|
200 |
|
|
(Being bill dishonoured on due date and discount cancelled) |
|
|
|
In the Books of Bank Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Mar 3 |
Bills Receivable A/c |
Dr. |
|
13,000 |
|
|
To Bill for Collection |
|
|
13,000 |
|
|
(Being bill received from Ravi for collection) |
|
|
|
|
Mar 7 |
Bill for Collection |
Dr. |
|
13,000 |
|
|
To Bills Receivable |
|
|
13,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was retained by Ravinderan with him till the date of its maturity:
In the Books of Ravinderan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Sales A/c |
|
|
25,000 |
|
|
(Being goods sold to Narayanan) |
|
|
|
|
Feb 1 |
Bill Receivable A/c |
Dr. |
|
25,000 |
|
|
To Narayanan |
|
|
25,000 |
|
|
(Being acceptance received) |
|
|
|
|
Mar 5 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Bills Receivable A/c |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was discounted with bank at the rate of 6%:
In the Books of Ravinderan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Sales A/c |
|
|
25,000 |
|
|
(Being goods sold to Narayanan) |
|
|
|
|
Feb 1 |
Bills Receivable A/c |
Dr. |
|
25,000 |
|
|
To Narayanan |
|
|
25,000 |
|
|
(Being acceptance received) |
|
|
|
|
Feb 1 |
Bank A/c |
Dr. |
|
24,875 |
|
|
Discount A/c |
Dr. |
|
125 |
|
|
To Bills Receivable A/c |
|
|
25,000 |
|
|
(Being bill discounted with the bank at the rate of 6% per annum) |
|
|
|
|
Mar 5 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Bank A/c |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was endorsed to his creditor Ganeshan.
In the Books of Ravinderan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Sales A/c |
|
|
25,000 |
|
|
(Being goods sold to Narayanan) |
|
|
|
|
Feb 1 |
Bills Receivable A/c |
Dr. |
|
25,000 |
|
|
To Narayanan |
|
|
25,000 |
|
|
(Being acceptance received) |
|
|
|
|
Feb 1 |
Ganeshan |
Dr. |
|
25,000 |
|
|
To Bills Receivable A/c |
|
|
25,000 |
|
|
(Being acceptance of Narayanan endorsed to Ganeshan) |
|
|
|
|
Mar 5 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Ganeshan |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was sent by Ravinderan to his bank for collection.
In the Books of Ravinderan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Sales A/c |
|
|
25,000 |
|
|
(Being goods sold to Narayanan) |
|
|
|
|
Feb 1 |
Bills Receivable A/c |
Dr. |
|
25,000 |
|
|
To Narayanan |
|
|
25,000 |
|
|
(Being acceptance received) |
|
|
|
|
Mar 5 |
Bill Sent for Collection |
Dr. |
|
25,000 |
|
|
To Bills Receivable |
|
|
25,000 |
|
|
(Being bill sent for collection) |
|
|
|
|
Mar 5 |
Narayanan |
Dr. |
|
25,000 |
|
|
To Bill Sent for Collection |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was retained by Ravinderan with him till the date of it maturity.
In the Books of Narayanan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Purchases A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being goods purchased) |
|
|
|
|
Feb 1 |
Ravinderan |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 5 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was discounted with the bank at the rate of 6%.
In the Books of Narayanan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Purchases A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being goods purchased) |
|
|
|
|
Feb 1 |
Ravinderan |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 5 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was endorsed to his creditor Ganeshan.
In the Books of Narayanan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Purchases A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being goods purchased) |
|
|
|
|
Feb 1 |
Ravinderan |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 5 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
When the bill was sent by Ravinderan to his bank for collection.
In the Books of Narayanan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Purchases A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being goods purchased) |
|
|
|
|
Feb 1 |
Ravinderan |
Dr. |
|
25,000 |
|
|
To Bills Payable A/c |
|
|
25,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 5 |
Bills Payable A/c |
Dr. |
|
25,000 |
|
|
To Ravinderan |
|
|
25,000 |
|
|
(Being bill dishonoured) |
|
|
|
Date | ₹ |
Dec. 21, 2016 | 1,000 |
Dec. 26, 2016 | 1,200 |
Dec. 18, 2016 | 2,000 |
Dec. 31, 2016 | 5,000 |
In the Books of Bansal Traders Journal Entries |
|||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2016 |
|
|
|
|
|||
Dec 21 |
Mohan Traders |
Dr. |
|
900 |
|
||
|
To Sales A/c |
|
|
900 |
|||
|
(Being goods sold to Mohan Traders and allowed 10% trade discount) |
|
|
|
|||
Dec 21 |
Bills Receivable 1st |
Dr. |
|
900 |
|
||
|
To Mohan Traders |
|
|
900 |
|||
|
(Being acceptance received) |
|
|
|
|||
Dec 26 |
Mohan Traders |
Dr. |
|
1,080 |
|
||
|
To Sales |
|
|
1,080 |
|||
|
(Being goods sold 10% trade discount allowed) |
|
|
|
|||
Dec 26 |
Bills Receivable A/c |
Dr. |
|
1,080 |
|
||
|
To Mohan Traders |
|
|
1,080 |
|||
|
(Being acceptance received) |
|
|
|
|||
Dec 26 |
Bank A/c |
Dr. |
|
1,071 |
|
||
|
Discount A/c |
Dr. |
|
9 |
|
||
|
To Bills Receivable A/c |
|
|
1,080 |
|||
|
(Being bill discounted with the bank at the rate of 12% per annum) |
|
|
|
|||
Dec 28 |
Mohan Traders |
Dr. |
|
1,800 |
|
||
|
To Sales A/c |
|
|
1,800 |
|||
|
(Being goods sold to Mohan Traders and allowed 10% trade discount) |
|
|
|
|||
Dec 28 |
Bills Receivable A/c |
Dr. |
|
1,800 |
|
||
|
To Mohan Traders |
|
|
1,800 |
|||
|
(Being acceptance received) |
|
|
|
|||
Dec 28 |
Dream Soaps A/c |
Dr. |
|
1,900 |
|
||
|
To Bills Receivable A/c |
|
|
1,800 |
|||
|
To Discount A/c |
|
|
100 |
|||
|
(Being acceptance received from Mohan Traders endorsed to dream soaps in full settlement of ` 1,900 purchase) |
|
|
|
|||
Dec 31 |
Mohan Traders |
Dr. |
|
4,500 |
|
||
|
To Sales A/c |
|
|
4,500 |
|||
|
(Being goods sold to Mohan Traders and allowed 10% trade discount) |
|
|
|
|||
Dec 31 |
Bills Receivable A/c |
Dr. |
|
4,500 |
|
||
|
To Mohan Traders |
|
|
4,500 |
|||
|
(Being acceptance received) |
|
|
|
|||
2017 |
|
|
|
|
|||
Jan 23 |
Cash A/c |
Dr. |
|
900 |
|
||
|
To Bills Receivable A/c |
|
|
900 |
|||
|
(Being promissory note issued was met on maturity) |
|
|
|
|||
Jan 25 |
Bill Sent for collection |
Dr. |
|
4,500 |
|
||
|
To Bills Receivable |
|
|
4,500 |
|||
|
(Being bill sent to the bank for collection) |
|
|
|
|||
Feb 2 |
Bank A/c |
Dr. |
|
4,500 |
|
||
|
To Bill Sent for Collection |
|
|
4,500 |
|||
|
(Being bill met on maturity) |
|
|
|
In the Books of Bansal Traders Mohan Traders’ Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Dec 21 |
To Sales A/c |
900 |
Dec 21 |
By Bills Receivable |
900 |
Dec 26 |
To Sales A/c |
1,080 |
Dec 26 |
By Bills Receivable |
1,080 |
Dec 28 |
To Sales A/c |
1,800 |
Dec 28 |
By Bills Receivable |
1,800 |
Dec 31 |
To Sales A/c |
4,500 |
Dec 31 |
By Bills Receivable |
4,500 |
|
|
8,280 |
|
|
8,280 |
In the Books of Mohan Traders Journal Entries |
|||||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|||
2016 |
|
|
|
|
|||
Dec 21 |
Purchases A/c |
Dr. |
|
900 |
|
||
|
To Bansal Traders |
|
|
900 |
|||
|
(Being goods purchased and 10% trade discount received) |
|
|
|
|||
Dec 21 |
Bansal Traders |
Dr. |
|
900 |
|
||
|
To Bills Payable A/c |
|
|
900 |
|||
|
(Being acceptance given) |
|
|
|
|||
Dec 26 |
Purchases A/c |
Dr. |
|
1,080 |
|
||
|
To Bansal Traders |
|
|
1,080 |
|||
|
(Being goods purchased and 10% trade discount received) |
|
|
|
|||
Dec 26 |
Bansal Traders |
Dr. |
|
1,080 |
|
||
|
To Bills Payable A/c |
|
|
1,080 |
|||
|
(Being acceptance given) |
|
|
|
|||
Dec 28 |
Purchase A/c |
Dr. |
|
1,800 |
|
||
|
To Bansal Traders |
|
|
1,800 |
|||
|
(Being goods purchased and 10% trade discount received) |
|
|
|
|||
Dec 28 |
Bansal Traders |
Dr. |
|
1,800 |
|
||
|
To Bills Payable A/c |
|
|
1,800 |
|||
|
(Being goods purchased from Bansal Traders) |
|
|
|
|||
Dec 31 |
Purchase A/c |
Dr. |
|
4,500 |
|
||
|
To Bansal Traders |
|
|
4,500 |
|||
|
(Being goods purchased from Bansal Traders) |
|
|
|
|||
Dec 31 |
Bansal Traders |
Dr. |
|
4,500 |
|
||
|
To Bills Payable A/c |
|
|
4,500 |
|||
|
(Being acceptance given) |
|
|
|
|||
2017 |
|
|
|
|
|||
Jan 23 |
Bills Payable A/c |
Dr. |
|
900 |
|
||
|
To Cash A/c |
|
|
900 |
|||
|
(Being bill paid on maturity) |
|
|
|
|||
Jan 28 |
Bills Payable A/c |
Dr. |
|
1,080 |
|
||
|
To Bank A/c |
|
|
1,080 |
|||
|
(Being bills payable paid on maturity) |
|
|
|
|||
Jan 30 |
Bills Payable A/c |
|
1,800 |
|
|||
|
To Cash A/c |
Dr. |
|
|
1,800 |
||
|
(Being bills payable paid on maturity) |
|
|
|
|||
Feb 2 |
Bills Payable A/c |
|
4,500 |
|
|||
|
To Bank A/c |
Dr. |
|
|
4,500 |
||
|
(Being bills payable paid on maturity) |
|
|
|
In the books of Mohan Traders Bansal Traders’ Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Dec 21 |
To Bills Payable |
900 |
Dec 21 |
By Purchase A/c |
900 |
Dec 26 |
To Bills Payable |
1,080 |
Dec 26 |
By Purchase A/c |
1,080 |
Dec 28 |
To Bills Payable |
1,800 |
Dec 28 |
By Purchase A/c |
1,800 |
Dec 31 |
To Bills Payable |
4,500 |
Dec 31 |
By Purchase A/c |
4,500 |
|
|
8,280 |
|
|
8,280 |
In the Books of Darshan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Varun |
Dr. |
|
40,000 |
|
|
To Sales A/c |
|
|
40,000 |
|
|
(Being goods sold to Varun) |
|
|
|
|
Jan 8 |
Bills Receivable A/c |
Dr. |
|
40,000 |
|
|
To Varun |
|
|
40,000 |
|
|
(Being acceptance received) |
|
|
|
|
Mar 11 |
Cash A/c |
Dr. |
|
40,000 |
|
|
To Bills Receivable A/c |
|
|
40,000 |
|
|
(Being payment received on maturity) |
|
|
|
When Darshan immediately discounted the bill at the rate of 6% per annum with his bank:
In the Books of Darshan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Varun |
Dr. |
|
40,000 |
|
|
To Sales A/c |
|
|
40,000 |
|
|
(Being goods sold to Varun) |
|
|
|
|
Jan 8 |
Bills Receivable A/c |
Dr. |
|
40,000 |
|
|
To Varun |
|
|
40,000 |
|
|
(Being acceptance received) |
|
|
|
|
Jan 8 |
Bank A/c |
Dr. |
|
39,600 |
|
|
Discount A/c |
Dr. |
|
400 |
|
|
To Bills Receivable A/c |
|
|
40,000 |
|
|
(Being bill discounted with the bank at the rate of 6% per annum) |
|
|
|
When the bill was endorsed immediately by Darshan in favour of his creditor Suresh:
In the Books of Darshan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Varun |
Dr. |
|
40,000 |
|
|
To Sales A/c |
|
|
40,000 |
|
|
(Being goods sold to Varun) |
|
|
|
|
Jan 8 |
Bills Receivable A/c |
Dr. |
|
40,000 |
|
|
To Varun |
|
|
40,000 |
|
|
(Being acceptance received) |
|
|
|
|
Jan 8 |
Suresh |
Dr. |
|
40,000 |
|
|
To Bills Receivable A/c |
|
|
40,000 |
|
|
(Being bill endorsed to Suresh) |
|
|
|
When three days before its maturity, the bill was sent by Darshan to his bank for collection:
In the Books of Darshan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Varun |
Dr. |
|
40,000 |
|
|
To Sales A/c |
|
|
40,000 |
|
|
(Being goods sold to Varun) |
|
|
|
|
Jan 8 |
Bills Receivable A/c |
Dr. |
|
40,000 |
|
|
To Varun |
|
|
40,000 |
|
|
(Being acceptance received) |
|
|
|
|
Mar 8 |
Bill sent for collection |
Dr. |
|
40,000 |
|
|
To Bills Receivable |
|
|
40,000 |
|
|
(Being bill sent for collection) |
|
|
|
|
Mar 8 |
Bank A/c |
Dr. |
|
40,000 |
|
|
To Bill sent for collection |
|
|
40,000 |
|
|
(Being bill met on maturity) |
|
|
|
When the bill was retained by Darshan till the date of its maturity.
In the Books of Varun Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Purchase A/c |
Dr. |
|
40,000 |
|
|
To Darshan |
|
|
40,000 |
|
|
(Being goods purchased) |
|
|
|
|
Jan 8 |
Darshan |
Dr. |
|
40,000 |
|
|
To Bills Payable A/c |
|
|
40,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 11 |
Bills Payable A/c |
Dr. |
|
40,000 |
|
|
To Cash A/c |
|
|
40,000 |
|
|
(Being bills payable paid on maturity) |
|
|
|
When Darshan immediately discounted the bill at the rate of 6% per annum with his bank:
In the Books of Varun Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Purchase A/c |
Dr. |
|
40,000 |
|
|
To Darshan |
|
|
40,000 |
|
|
(Being goods purchased from Darshan on credit) |
|
|
|
|
Jan 8 |
Darshan |
Dr. |
|
40,000 |
|
|
To Bills Payable A/c |
|
|
40,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 11 |
Bills Payable A/c |
Dr. |
|
40,000 |
|
|
To Bank A/c |
|
|
40,000 |
|
|
(Being payment made on maturity) |
|
|
|
When the bill was endorsed by Darshan immediately of his creditor Suresh.
In the Books of Varun Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Purchase A/c |
Dr. |
|
40,000 |
|
|
To Darshan |
|
|
40,000 |
|
|
(Being goods purchased) |
|
|
|
|
Jan 8 |
Darshan |
Dr. |
|
40,000 |
|
|
To Bills Payable A/c |
|
|
40,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 11 |
Bills Payable A/c |
Dr. |
|
40,000 |
|
|
To Cash A/c |
|
|
40,000 |
|
|
(Being payment made on maturity) |
|
|
|
When three days before its maturity, the bill was sent by Darshan to his bank for collection.
In the Books of Varun Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 8 |
Purchase A/c |
Dr. |
|
40,000 |
|
|
To Darshan |
|
|
40,000 |
|
|
(Being goods purchased) |
|
|
|
|
Jan 8 |
Darshan |
Dr. |
|
40,000 |
|
|
To Bills Payable A/c |
|
|
40,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 11 |
Bills Payable A/c |
Dr. |
|
40,000 |
|
|
To Cash A/c |
|
|
40,000 |
|
|
(Being payment made on maturity) |
|
|
|
In the Books of Arun Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 1 |
Sunil |
Dr. |
|
30,000 |
|
|
To Sales A/c |
|
|
30,000 |
|
|
(Being goods sold to Sunil) |
|
|
|
|
Jan 1 |
Cash A/c |
Dr. |
|
14,700 |
|
|
Discount A/c |
Dr. |
|
300 |
|
|
To Sunil |
|
|
15,000 |
|
|
(Being 50% of bills amount with 2% cash discount and acceptance of rest 50% bill amount received) |
|
|
|
|
Jan 1 |
Bills Receivable A/c |
Dr. |
|
15,000 |
|
|
To Sunil |
|
|
15,000 |
|
|
(Being acceptance received) |
|
|
|
|
Jan 23 |
Cash A/c |
Dr. |
|
15,000 |
|
|
To Bills Receivable A/c |
|
|
15,000 |
|
|
(Being payment received on maturity) |
|
|
|
In the Books of Sunil Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 1 |
Purchase A/c |
Dr. |
|
30,000 |
|
|
To Arun |
|
|
30,000 |
|
|
(Being goods purchased) |
|
|
|
|
Jan 1 |
Arun |
Dr. |
|
15,000 |
|
|
To Cash A/c |
|
|
14,700 |
|
|
To Discount A/c |
|
|
300 |
|
|
(Being 50% bill amount with 2% discount and acceptance of rest 50% bill amount made) |
|
|
|
|
Jan 1 |
Arun |
Dr. |
|
15,000 |
|
|
To Bills Payable A/c |
|
|
15,000 |
|
|
(Being acceptance given) |
|
|
|
|
Jan 23 |
Bills Payable A/c |
Dr. |
|
15,000 |
|
|
To Cash A/c |
|
|
15,000 |
|
|
(Being payment made on maturity) |
|
|
|
In the Books of Kartar Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2015 |
|
|
|
|
|
Jan 15 |
Bhagwan |
Dr. |
|
30,000 |
|
|
To Sales A/c |
|
|
30,000 |
|
|
(Being goods sold to Bhagwan) |
|
|
|
|
Jan 15 |
Bills Receivable 1st |
Dr. |
|
10,000 |
|
|
Bills Receivable 2nd |
Dr. |
|
10,000 |
|
|
Bills Receivable 3rd |
Dr. |
|
10,000 |
|
|
To Bhagwan |
|
|
30,000 |
|
|
(Being three acceptance received each for ₹ 10,000) |
|
|
|
|
Jan 15 |
Ratan |
Dr. |
|
10,000 |
|
|
To Bills Receivable 2nd |
|
|
10,000 |
|
|
(Being 2nd bill endorsed in favour of Ratan) |
|
|
|
|
Jan 15 |
Bank A/c |
Dr. |
|
9,850 |
|
|
Discount A/c |
Dr. |
|
150 |
|
|
To Bills Receivable 3rd |
|
|
10,000 |
|
|
(Being 3rd bill discounted by the bank at the rate of 6% per annum) |
|
|
|
|
Feb 18 |
Cash A/c |
Dr. |
|
10,000 |
|
|
To Bills Receivable 1st |
|
|
10,000 |
|
|
(Being payment received on maturity) |
|
|
|
Bhagwan’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2015 |
|
|
2015 |
|
|
Jan 15 |
To Sales A/c |
30,000 |
Jan 15 |
By Bills Receivable 1st |
10,000 |
|
|
|
|
By Bills Receivable 2nd |
10,000 |
|
|
|
|
By Bills Receivable 3rd |
10,000 |
|
|
30,000 |
|
|
30,000 |
In the Books of Bhagwan Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2015 |
|
|
|
|
|
Jan 15 |
Purchases A/c |
Dr. |
|
30,000 |
|
|
To Kartar |
|
|
30,000 |
|
|
(Being goods purchased) |
|
|
|
|
Jan 15 |
Kartar |
Dr. |
|
30,000 |
|
|
To Bills Payable 1st |
|
|
10,000 |
|
|
To Bills Payable 2nd |
|
|
10,000 |
|
|
To Bills Payable 3rd |
|
|
10,000 |
|
|
(Being three acceptances given each for ₹ 10,000) |
|
|
|
|
Feb 18 |
Bills Payable 1st |
Dr. |
|
10,000 |
|
|
To Cash A/c |
|
|
10,000 |
|
|
(Being 1st bill paid on maturity) |
|
|
|
|
Mar 18 |
Bills Payable 2nd |
Dr. |
|
10,000 |
|
|
To Bank A/c |
|
|
10,000 |
|
|
(Being 2nd bill paid on maturity) |
|
|
|
|
Apr 18 |
Bills Payable 3rd |
Dr. |
|
10,000 |
|
|
To Bank A/c |
|
|
10,000 |
|
|
(Being 3rd bill met on maturity) |
|
|
|
Kartar’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2015 |
|
|
2015 |
|
|
Jan 15 |
To Bills Payable 1st |
10,000 |
Jan 15 |
By Purchases A/c |
30,000 |
|
To Bills Payable 2nd |
10,000 |
|
|
|
|
To Bills Payable 3rd |
10,000 |
|
|
|
|
|
30,000 |
|
|
30,000 |
In the Books of Jimmi Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
John |
Dr. |
|
15,000 |
|
|
To Sales A/c |
|
|
15,000 |
|
|
(Being goods sold to John) |
|
|
|
|
Feb 1 |
Bank A/c |
Dr. |
|
5,000 |
|
|
Bills Receivable A/c |
Dr. |
|
10,000 |
|
|
To John |
|
|
15,000 |
|
|
(Being acceptance received on 10,000 and 5,000 cash received) |
|
|
|
|
Mar 10 |
Bill sent for Collection |
Dr. |
|
10,000 |
|
|
To Bills Receivable A/c |
|
|
10,000 |
|
|
(Being bill sent for collection) |
|
|
|
|
Mar 15 |
Bank A/c |
Dr. |
|
10,000 |
|
|
To Bill Sent for Collection |
|
|
10,000 |
|
|
(Being bill sent for collection, collected by the bank) |
|
|
|
John’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Feb 1 |
To Sales |
15,000 |
Feb 1 |
By Bank A/c |
5,000 |
|
|
|
Feb 1 |
By Bills Receivable A/c |
10,000 |
|
|
15,000 |
|
|
15,000 |
In the Books of John Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Feb 1 |
Purchases A/c |
Dr. |
|
15,000 |
|
|
To Jimmi |
|
|
15,000 |
|
|
(Being goods purchased from Jimmi) |
|
|
|
|
Feb 1 |
Jimmi |
Dr. |
|
15,000 |
|
|
To Bank A/c |
|
|
5,000 |
|
|
To Bills Payable A/c |
|
|
10,000 |
|
|
(Being acceptance given for ₹10,000 and payment of ₹5,000 made) |
|
|
|
|
Mar 15 |
Bills Payable A/c |
Dr. |
|
10,000 |
|
|
To Bank |
|
|
10,000 |
|
|
(Being bills payable paid on maturity) |
|
|
|
Jimmi’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Feb 1 |
To Bank |
5,000 |
Feb 1 |
By Purchase A/c |
15,000 |
Feb 1 |
To Bills Payable |
10,000 |
|
|
|
|
|
15,000 |
|
|
15,000 |
In the Books of Vishal Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2015 |
|
|
|
|
|
Jan 5 |
Manju |
Dr. |
|
7,000 |
|
|
To Sales A/c |
|
|
7,000 |
|
|
(Being goods sold to Manju) |
|
|
|
|
Jan 5 |
Bills Receivable A/c |
Dr. |
|
7,000 |
|
|
To Manju |
|
|
7,000 |
|
|
(Being acceptance received) |
|
|
|
|
Apr 5 |
Bank A/c |
Dr. |
|
6,860 |
|
|
Discount A/c |
Dr. |
|
140 |
|
|
To Bills Receivable A/c |
|
|
7,000 |
|
|
(Being Bills discounted with the bank at the rate of 12% per annum) |
|
|
|
Working Note:
In the Books of Manju Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2015 |
|
|
|
|
|
Jan 5 |
Purchase A/c |
Dr. |
|
7,000 |
|
|
To Vishal |
|
|
7,000 |
|
|
(Being goods purchased from Vishal) |
|
|
|
|
Jan 1 |
Vishal |
Dr. |
|
7,000 |
|
|
To Bills Payable A/c |
|
|
7,000 |
|
|
(Being acceptance given) |
|
|
|
|
Mar 8 |
Bills Payable A/c |
Dr. |
|
7,000 |
|
|
To Bank A/c |
|
|
7,000 |
|
|
(Being Bills payable paid on maturity) |
|
|
|
In the Books of Parvati Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 1 |
Shankar |
Dr. |
|
8,000 |
|
|
To Sales A/c |
|
|
8,000 |
|
|
(Being goods sold to Shankar on credit) |
|
|
|
|
Jan 1 |
Bills Receivable A/c |
Dr. |
|
8,000 |
|
|
To Shankar |
|
|
8,000 |
|
|
(Being acceptance received) |
|
|
|
|
Apr 5 |
Cash A/c |
Dr. |
|
8,000 |
|
|
To Bills Receivable A/c |
|
|
8,000 |
|
|
(Being Shankar met his acceptance on maturity) |
|
|
|
In the Books of Shankar Journal Entries |
|||||
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 1 |
Purchases A/c |
Dr. |
|
8,000 |
|
|
To Parvati |
|
|
8,000 |
|
|
(Being goods purchased from Parvati on credit) |
|
|
|
|
Jan 1 |
Parvati |
Dr. |
|
8,000 |
|
|
To Bills Payable A/c |
|
|
8,000 |
|
|
(Being acceptance given) |
|
|
|
|
Apr 5 |
Bills Payable A/c |
Dr. |
|
8,000 |
|
|
To Cash A/c |
|
|
8,000 |
|
|
(Being bills payable paid on maturity) |
|
|
|
Date |
Particulars |
L.F |
Dr. (₹) |
Cr. (₹) |
|
2016 |
|
|
|
|
|
Jan 1 |
Reddy |
Dr. |
|
10,000 |
|
|
To Sales A/c |
|
|
10,000 |
|
|
(Being goods sold to Reddy on credit) |
|
|
|
|
Jan 1 |
Cash A/c |
Dr. |
|
5,000 |
|
|
Bills Receivable A/c |
Dr. |
|
5,000 |
|
|
To Reddy |
|
|
10,000 |
|
|
(Being half of the amount of credit sales and acceptance for remaining half amount received) |
|
|
|
|
Feb 3 |
Cash A/c |
Dr. |
|
5,000 |
|
|
To Bills Receivable A/c |
|
|
5,000 |
|
|
(Being cash received on due date) |
|
|
|
In the Books of Reddy |
|||||
Rao’s Account |
|||||
Date |
Particulars |
₹ |
Date |
Particulars |
₹ |
2016 |
|
|
2016 |
|
|
Jan 1 |
To Cash A/c |
5,000 |
Jan 1 |
By Purchase A/c |
10,000 |
Jan 1 |
To Bills Receivable A/c |
5,000 |
|
|
|
|
|
10,000 |
|
|
10,000 |
The term maturity refers the date on which a bill of exchange becomes due for payment. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires instrument is payable.
Suppose a bill dated March 05 is payable 30 days after date it, falls due on Apr 07, i.e., 33 days after March 05 if were payable one month after date, the due date would be April 08, i.e., one month and 3 days after March 05.
However where the date of maturity is a public holiday, the instrument will become due on the preceding business day. In this case if April 08, falls on a public holiday then the April 07 will be the maturity date.
But when an emergency holiday is declared under the Negotiable Instrument Act 1881, by the Government of India which may happen to be the date of maturity of a bill of exchange, then it will be next working day.
Procedures:
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