Practical Problem 01 & 02
Practical problem | Q 1 | Page 305 On 1st Jan. 2020 Hemant sold goods of ` 18,500 to Nitin. On the same date Hemant drew a bill |
of exchange for ` 18,500 at 2 months. On the due date the bill was duly honored. |
Give Journal Entries in the Books of Hemant and Nitin. Prepare Hamant’s account in the books of Nitin. |
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Solution:
Practical Problem 01
Journal Entry in the books of Hemant | ||||
DATE | PARTICULAR | L.F | DEBIT | CREDIT |
2020 | ||||
Jan-01 | Nitin A/c……………………………………………………………………….….Dr | 18,500 | ||
To Sales A/c | 18,500 | |||
(Being Good Sold on Credit) | ||||
Jan-01 | Bill Receivable A/c…………………………………………………………….…Dr | 18,500 | ||
To Nitin A/c | 18,500 | |||
(Being Bill Drawn and Acceptance Received from Nitin) | ||||
Mar-04 | Cash A/c………………………………………………………………………………Dr | 18,500 | ||
To Bill’s Receivable A/c | 18,500 | |||
(Being Nitin Acceptance Honored on due Date) | ||||
Total | 55,500 | 55,500 | ||
Journal Entry in the books of Nitin | ||||
DATE | PARTICULAR | L.F | DEBIT | CREDIT |
2020 | ||||
Jan-01 | Purchase A/c……………………………………………………………..……….Dr | 18,500 | ||
To Hemant’s A/c | 18,500 | |||
(Being goods Purchase on Credit) | ||||
Jan-01 | Hemant’s A/c……………………………………………………………….…….Dr | 18,500 | ||
To Bills Payable A/c | 18,500 | |||
(Being our acceptance is Given) | ||||
Mar-04 | Bills Payable A/c………………………………………………………….……Dr | 18,500 | ||
To Cash/Bank A/c | 18,500 | |||
(Being Bill paid on Due date) | ||||
Total | 55,500 | 55,500 | ||
Dr Himant’s A/c Cr | |||||
Date | Particular | Amount | Date | Particular | Amount |
2020 | 2020 | ||||
Jan-01 | To Bills Payable A/c | 18,500 | Jan-01 | By Purchase A/c | 18,500 |
18,500 | 18,500 | ||||
Practical problem | Q 2 | Page 305
Neha sold goods to Rohan ` 42,000 on 6th Sept. 2019. Neha drew a bill of exchange at 3 months for the |
amount which was accepted by Rohan. Neha discounted the bill with her bankers at ` 41,000. |
On the due date of the bill Rohan dishonored the bill and bank paid ` 300 as Noting Charges. |
Show Journal Entries in the Books of Neha and Rohan. |
Solution:
Practical Problem 02
Date | Particular | L.F | Amount | Amount |
2019 | Purchase A/c…………………………………………………………………….Dr | 42,000 | ||
Sept. 6 | To Neha’s A/c | 42,000 | ||
(Being goods purchase on credit) | ||||
Sept. 6 | Neha’s A/c………………………………………………………………………..Dr | 42,000 | ||
To Bills Payable A/c | 42,000 | |||
(Being Our Acceptance Given) | ||||
Dec. 9 | Bills Payable A/c……………………………………………………………..Dr | 42,000 | ||
Noting Charges A/c…………………………………………………………Dr | 300 | |||
To Neha’s A/c | 42,300 | |||
(Being Bill Dishonored and Noting Charges Paid) | ||||
Total | 1,26,300 | 1,26,300 | ||