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anita purchased goods for 23000 from kavita on 15 oct 2009 and accepted a bill of exchange drawn upon her by kavitapayable after 2 mnths.on the date of maturity the bill was duly presented for payment .anita dishounered the bill the payee noted with rs95 as noting charges
record the journal entries in the booka of kavita and anita when (a)the bill was immediately discounted by kavita from his bank (b)was endorsed to her creditor shankarafter one mnth by kavita

Dear Student,
The solution to your query is provided below.
Case a- When the bill was immediately discounted with the bank
Journal
In the Books of Kavita
Date Particulars L.F. Debit 
Amount 
( Rs )		 Credit 
Amount 
( Rs )
2009          
Oct. 15 Anita Dr.   23,000  
    To Sales A/c       23,000
  (Goods sold to Anita)        
           
Oct. 15 Bills Receivable A/c Dr.   23,000  
    To Anita       23,000
  (Bill drawn and accepted)        
           
Oct. 15 Bank A/c Dr.   23,000  
  Discounting Charges A/c Dr.   *  
    To Bills Receivable A/c       23,000
  (Bill immediately discounted with Bank)        
           
Dec. 18 Anita Dr.   23,095  
    To Cash/Bank A/c       23,095
  (Bill dishonoured on due date and noting charges of Rs 95 were charged)        
           
         
 * The amount that is charged as noting charges are not provided in the question, but it should be there as bank will always charge some commission for discounting the bill before maturity date.

Case b- When the bill was endorsed to creditor Shankar
Journal
In the Books of Kavita
Date Particulars L.F. Debit 
Amount 
( Rs )		 Credit 
Amount 
( Rs )
2009          
Oct. 15 Anita Dr.   23,000  
    To Sales A/c       23,000
  (Goods sold to Anita)        
           
Oct. 15 Bills Receivable A/c Dr.   23,000  
    To Anita       23,000
  (Bill drawn and accepted)        
           
Nov. 15 Shankar Dr.   23,000  
    To Bills Receivable A/c       23,000
  (Bill endorsed to Shankar)        
           
Dec. 18 Anita Dr.   23,095  
    To Shankar       23,095
  (Bill dishonoured on due date and noting charges of Rs 95 were charged)        
           
         
Journal
In the Books of Anita
Date Particulars L.F. Debit 
Amount 
( Rs )		 Credit 
Amount 
( Rs )
2009          
Oct. 15 Purchases A/c Dr.   23,000  
    To Kavita       23,000
  (Purchased goods from Kavita)        
           
Oct. 15 Kavita Dr.   23,000  
    To Bills Payable A/c       23,000
  (Acceptance given for the bill)        
           
Dec. 18 Bills Payable A/c Dr.   23,000  
  Noting Charges A/c  Dr.    95  
  To Kavita       23,095
  (Bill dishonoured on due date and noting charges of Rs 95 were charged)        
           
         

Hope this answers your query.
Keep Posting!!!

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