# Practical Problem 04

Practical problem | Q 4 | Page 306

 Pankaj purchased goods of ` 20,000 from Omprakash on credit on 15th April 2019. Omprakash draws After Sight bill for the amount due on Pankaj for 3 months which was accepted by Pankaj on 18th April, 2019. On 20th April, 2019 Omprakash endorsed the bill to his creditor Jagdish in full settlement of his amount Rs 21,000. On the due date the bill was dishonored by Pankaj Give Journal Entries in the Books of Omprakash, Pankaj and Jagdish.

#### Solutions:

 Journal Entries In the books of Omprakash Date Particular L.F Amount Amount 2019 Apr-15 Pankaj’s A/c………………………………………………………………………Dr 20,000 To Sales A/c 20,000 (Being Good Sold on Credit) Apr-18 Bill Receivable A/c……………………………………………………………..Dr 20,000 To Pankaj A/c 20,000 (Being bill drawn and acceptence received) Apr-20 Jagdish A/c…………………………………………………………………………Dr 21,000 To Bill Receivable A/c 20,000 To Discount A/c 1,000 (Being Pankaj’s acceptance endorsed and Discount received) Jul-21 Pankaj’s A/c…………………………………………………………………….Dr 20,000 Discount A/c…………………………………………………………………….Dr 1,000 To Jagdish’s A/c 21,000 (Being Endorsed bill dishoured) Total 82,000 82,000
 Journal Entries In the books of Pankaj Date Particular L.F Amount Amount 2019 Apr-15 Purchase A/c……………………………………………………………………….Dr 20,000 To Omprakash’s A/c 20,000 (Being Goods Purchased on Credit) Apr-18 Omprakash’s A/c………………………………………………………………Dr 20,000 To Bills Payable A/c 20,000 (Being Our acceptance is given) Apr-20 No Entry Jul-23 Bill payable A/c……………………………………………………………….Dr 20,000 To Om Prakash’s A/c 20,000 (Being bill dishonored on due date) Total 60,000 60,000
 Journal Entries In the books of Jagdish Date Particular L.F Amount Amount 2019 Apr-20 Bill Receivable A/c…………………………………………………………..Dr 20,000 Discount A/c…………………………………………………………………….Dr 1,000 To Omprakash A/c 21,000 (Being Bill Receivable received) Jul-21 Omprakash A/c………………………………………………………………..Dr 21,000 To Bill Receivable A/c 20,000 To Discount A/c 1,000 (Being Bills Receivable dishonoured) Total 42,000 42,000