Question No 18 Chapter No 15
Alternatives available with Drawer
18. Neha sold goods of Rs 7,000 to Chanda. On 1st February 2019, Neha received one month’s promissory note of Rs 6,800 is the full settlement of Chanda’s account. Neha transferred this promissory note immediately to Sheffali in full settlement of her account of Rs 10,000 and for the remaining amount, Neha sent a cheque to Sheffali. The promissory note was honoured on due date.
Pass the journal entries in the books of Neha and Chanda.
The solution of Question No 18 Chapter No 15: –
| In the books of Neha (Drawer) |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Feb.1 | Chanda A/c | Dr. | 7,000 | ||
| To Sales A/c | 7,000 | ||||
| (Being goods sold on credit) | |||||
| Feb.1 | Bill Receivable A/c | Dr. | 6,800 | ||
| Discount A/c | Dr. | 200 | |||
| To Chanda A/c | 7,000 | ||||
| (Being Acceptance received for one month and discount allowed) | |||||
| Feb.1 | Shaffali A/c | Dr. | 10,000 | ||
| To Bill Receivable A/c | 6,800 | ||||
| To Bank A/c | 3,200 | ||||
| (Being Shaffali’s account settled) | |||||
| In the books of Chanda (Drawee) |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Feb.1 | Purchases A/c | Dr. | 7,000 | ||
| To Neha A/c | 7,000 | ||||
| (Being bill discounted on a month before maturity @12% p.a.) | |||||
| Feb.1 | Neha A/c | Dr. | 7,000 | ||
| To Bill Payable A/c | 6,800 | ||||
| To Discount received A/c | 200 | ||||
| (Being acceptance given for one month and discount received ) | |||||
| Mar.4 | Bill Payable A/c | Dr. | 6,800 | ||
| To Cash A/c | 6,800 | ||||
| (Being bill met on Maturity) | |||||
Bills Receivable Book | Subsidiary Books | Examples
Bills Payable Book | Subsidiary Books | Examples
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)