ON 15 JUNE 2013,Mohan sold goods to sohan valued at RS 2000 he drew a bill at 3 months - Accountancy - Bills of Exchange

Question

ON 15 JUNE 2013,Mohan sold goods to sohan valued at RS 2000 he
drew a bill at 3 months for the amount and discounted the same with
his bankers at RS1960 on the due date the bill was dishonoured and
mohan paid to the bank the amount due plus the noting charges of
RS,10
draft the journal entries in the books of all parties

Manisha Arora · Accepted Answer

Journal Entry
In the Books of
Mohan

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

2013

Jun 15
Sohan
Dr

2,000

To Sales A/c

2,000

(Goods sold on credit)

Jun 15
Bills Receivable A/c
Dr

2,000

To Sohan

2,000

(Bill drawn and accepted)

Jun 15
Bank A/c
Dr

1,960

Discount A/c
Dr

40

To Bill Receivable A/c

2,000

(Bill discounted with Bank @ Rs
1,960)

Sept 18
Sohan
Dr

2,010

To Cash/Bank A/c

2,010

(Bill dishonoured on due date)

Journal Entry
In the Books of
Sohan

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

2013

Jun 15
Purchases A/c
Dr

2,000

To Mohan

2,000

(Goods Purchased on credit)

Jun 15
Mohan
Dr

2,000

To Bill Payable A/c

2,000

(Bill accepted)

Sept 18
Mohan
Dr

2,000

Noting Charges A/c
Dr

10

To Bill Payable A/c

2,010

(Bill dishonoured on due date)

Journal Entry In the Books of Mohan
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2013
Jun.15	Sohan	Dr.		2,000
	To Sales A/c				2,000
	(Goods sold on credit)

Jun.15	Bills Receivable A/c	Dr.		2,000
	To Sohan				2,000
	(Bill drawn and accepted)

Jun.15	Bank A/c	Dr.		1,960
	Discount A/c	Dr.		40
	To Bill Receivable A/c				2,000
	(Bill discounted with Bank @ Rs 1,960)

Sept.18	Sohan	Dr.		2,010
	To Cash/Bank A/c				2,010
	(Bill dishonoured on due date)

Journal Entry In the Books of Sohan
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2013
Jun.15	Purchases A/c	Dr.		2,000
	To Mohan				2,000
	(Goods Purchased on credit)

Jun.15	Mohan	Dr.		2,000
	To Bill Payable A/c				2,000
	(Bill accepted)

Sept.18	Mohan	Dr.		2,000
	Noting Charges A/c	Dr.		10
	To Bill Payable A/c				2,010
	(Bill dishonoured on due date)