Anand sold goods tor rs 25000 to balan and draw a bill upon him for the amount on 01-03-2003 payable - Accountancy - Bills of Exchange

Question

Anand sold goods tor rs 25000 to balan and draw a bill upon him for
the amount on 01-03-2003 payable after 3 months On maturity the
bill was dishonoured and rs200 were paid by the holder of the bill
as noting charges Give the journal entries in the books of anandand
balan
1) when the bill endorsed in favour of his creditor balan

Manisha Arora · Accepted Answer

Hi Faeza, the solution
to your query is here

Journal
In the Books of Anand

Date
Particulars
L
F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

2003

Mar
01
Balan
Dr

25,000

To Sales
A/c

25,000

(Goods sold to
Balan)

Mar
01
Bills Receivable
A/c
Dr

25,000

To
Balan

25,000

(Bill drawn and
accepted)

Journal
In the Books of Balan

Date
Particulars
L
F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

2003

Mar
01
Purchases
A/c
Dr

25,000

To
Anand

25,000

(Goods purchased from
Anand)

Mar
01
Anand
Dr

25,000

To Bills Payable
A/c

25,000

(Bill
accepted)

However, this question
can not be solved further because the drawee and the endorsee are
the same person which is not practically possible
Keep Posting!!

Journal In the Books of Anand
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2003
Mar. 01	Balan	Dr.		25,000
	To Sales A/c				25,000
	(Goods sold to Balan)

Mar. 01	Bills Receivable A/c	Dr.		25,000
	To Balan				25,000
	(Bill drawn and accepted)

Journal In the Books of Balan
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2003
Mar. 01	Purchases A/c	Dr.		25,000
	To Anand				25,000
	(Goods purchased from Anand)

Mar. 01	Anand	Dr.		25,000
	To Bills Payable A/c				25,000
	(Bill accepted)