Vishal sold goods for Rs 7,000 to Manju on Jan 05, 2006 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal’s draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank@12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.

 

 

Books of Vishal

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2006

Jan.05

Manju

Dr.

7,000

To Sales A/c

7,000

(Goods sold to Manju)

Jan.05

Bills Receivable A/c

Dr.

7,000

To Manju

7,000

(Manju's acceptance received for two months)

Jan.05

Bank A/c

Dr.

6,860

Discount A/c

Dr.

140

7,000

To Bills Receivable A/c

(Bill Receivable discounted with the bank @ 12 % p.a. for two months)

Books of Manju

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2006

Jan.05

Purchases A/c

Dr.

7,000

To Vishal

7,000

(Goods purchased from Vishal)

Jan.05

Vishal

Dr.

7,000

To Bills Payable A/c

7,000

(Bill drawn by Vishal accepted)

Mar.08

Bills Payable A/c

Dr.

7,000

To Bank A/c

7,000

(Amount of Bill Payable paid to bank on maturity)