Question -
Answer -
(i): The bill was retained by Kamal till the date of its maturity
| Books of Kamal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | |
| 15 Jan | Vimal | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Vimal) | | | | |
| | | | | | |
| 15 Jan | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Vimal | | | | 25,000 |
| (Vimal’s acceptance received) | | | | |
| | | | | | |
| 18 Mar | Vimal | Dr. | | 25,000 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Vimal acceptance dishonoured) | | | | |
| | | | | | |
| Books of Vimal Journal |
| Date | Particulars | L.F. | Debit Amount ₹ | Credit Amount ₹ |
| 2016 | | | | | |
| 15 Jan | Purchases A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Goods purchased from Kamal) | | | | |
| | | | | | |
| 15 Jan | Kamal | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Bill drawn by Kamal accepted) | | | | |
| | | | | | |
| 18 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Bill drawn by Kamal dishonoured) | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | | | | | | | |
(ii): The bill was immediately discounted by Kamal with his bank @ 6% p.a.
| Books of Kamal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | | |
| 15 Jan | Vimal | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Vimal) | | | | |
| | | | | | |
| 15 Jan | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Vimal | | | | 25,000 |
| (Vimal’s acceptance received) | | | | |
| | | | | | |
| 15 Jan | Bank A/c | Dr. | | 24,750 | |
| Discount A/c | Dr. | | 250 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Vimal’s acceptance discounted at 6% p.a. with bank) | | | | |
| | | | | | |
| 18 Mar | Vimal | Dr. | | 25,000 | |
| | To Bank A/c | | | | 25,000 |
| (Vimal’s acceptance dishonoured) | | | | |
| | | | | | |
| Books of Vimal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | |
| 15 Jan | Purchases A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Goods purchased from Kamal) | | | | |
| | | | | | |
| 15 Jan | Kamal | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Bill drawn by Kamal accepted) | | | | |
| | | | | | |
| 18 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Bill drawn by Kamal dishonoured) | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | | | | | | | |
Case(iii) : The bill was endorsed by Kamal in favour of his creditor Sharad
| Books of Kamal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| | | | | | |
| 2016 | | | | | | |
| 15 Jan | Vimal | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Vimal) | | | | |
| | | | | | |
| 15 Jan | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Vimal | | | | 25,000 |
| (Vimal’s acceptance received) | | | | |
| | | | | | |
| 15 Jan | Sharad | Dr. | | 25,000 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Vimal’s acceptance endorsed to Sharad) | | | | |
| | | | | | |
| 18 Mar | Vimal | Dr. | | 25,000 | |
| | To Sharad | | | | 25,000 |
| (Vimal’s acceptance endorsed to Kamal dishonoured) | | | | |
| | | | | | |
| | | | | | | |
| Books of Vimal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | |
| 15 Jan | Purchases A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Goods purchased from Kamal) | | | | |
| | | | | | |
| 15 Jan | Kamal | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Bill drawn by Kamal accepted) | | | | |
| | | | | | |
| 18 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Bill drawn by Kamal dishonoured) | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | |
Case(IV): Five days before its maturity the bill was sent by Kamal to his bank forcollection
| Books of Kamal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| 2016 | | | | | | |
| 15 Jan | Vimal | Dr. | | 25,000 | |
| | To Sales A/c | | | | 25,000 |
| (Goods tradedto Vimal) | | | | |
| | | | | | |
| 15 Jan | Bills Receivable A/c | Dr. | | 25,000 | |
| | To Vimal | | | | 25,000 |
| (Vimal’s acceptance received, payable after two months) | | | | |
| | | | | | |
| Mar.13 | Bill Sent for Collection A/c | Dr. | | 25,000 | |
| | To Bills Receivable A/c | | | | 25,000 |
| (Vimal’s acceptance sent to bank for collection) | | | | |
| | | | | | |
| 18 Mar | Vimal | Dr. | | 25,000 | |
| | To Bill Sent for Collection | | | | 25,000 |
| (Vimal’s acceptance dishonoured) | | | | |
| | | | | | |
| Books of Vimal Journal |
| Date | | Particulars | | L.F. | Debit ₹ | Credit₹ |
| Case (iii) | | | | | | |
| 2016 | | | | | |
| 15 Jan | Purchases A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Goods purchased from Kamal) | | | | |
| | | | | | |
| 15 Jan | Kamal | Dr. | | 25,000 | |
| | To Bills Payable A/c | | | | 25,000 |
| (Bill drawn by Kamal accepted) | | | | |
| | | | | | |
| 18 Mar | Bills Payable A/c | Dr. | | 25,000 | |
| | To Kamal | | | | 25,000 |
| (Bill drawn by Kamal dishonoured) | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | | | | | | | |