Illustration 5
X sold goods to Y on 1st April, 2011 for Rs. 20,000 on credit and drew upon him a bill for the same amount payable after 3 months. Y accepted the bill and returned it to X. On the date of maturity bill was presented to Y for the payment and he honoured it.
Pass the Journal Entries in the books of both the parties when :
Case I – Bill is retained by the X till the date of maturity.
Case II – Bill is discounted by X from his bank on 4th April @ 6% per annum.
Case III – Bill is endorsed in favour of Z on 4th May, 2011.
Case IV – Bill is sent to Bank for collection on 1st July, 2011.Also record the Journal Entries in the books of C (Case - III)
Solution :
In the book of X (Drawer)
Journal
Note :
1. First two entries passed on April 1, 2011 will be same in the books of X (Drawer) in all the 4 cases.
2. If a bill is honoured on the date of maturity.
NO ENTRY is passed on the date of maturity in the books of drawer, if :
- Bill is discounted from the bank ; or
- Bill is endorsed in favour of creditor
(In all 4 cases) In the Books of Y (Drawee)
Journal
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : [email protected]
