On 1st june 2003 A sold goods to B for Rs.1250 . B gave to Ahis acceptance payable one month after date. Before maturity B requests A to renew it , which A does adding Rs.10 to the new bill for interest. Make necessary journal entries to record these transactions in the books of both A and B.
In the Books of A Journal | |||||
Date | Particulars |
| L.F. | Debit Amount Rs | Credit Amount Rs |
2004 June 01
June 01
July 04
July 04
July 04 |
B To Sales A/c (Sold goods to B)
Bills Receivable A/c To B (B’s acceptance received)
B To Bills Receivable A/c (B’s acceptance cancelled)
B To Interest A/c (Interest due from B)
Bills Receivable A/c To B (B’s acceptance received) |
Dr.
Dr.
Dr.
Dr.
Dr. |
|
1,250
1,250
1,250
10
1,260 |
1,250
1,250
1,250
10
1,260 |
In the Books of B Journal | |||||
Date | Particulars |
| L.F. | Debit Amount Rs | Credit Amount Rs |
2004 June 01
June 01
July 04
July 04
July 04 |
Purchases A/c To A (Bought goods from A)
A To Bills payable A/c (Bill drawn by A, accepted)
Bills Payable A/c To A (Bill drawn by B cancelled)
Interest A/c To A (Interest due to A)
A To Bill’s Payable A/c (Bill drawn by A accepted) |
Dr.
Dr.
Dr.
Dr.
Dr. |
|
1,250
1,250
1,250
10
1,260 |
1,250
1,250
1,250
10
1,260 |