Question

On 10^th March 2004, Chandran drew and Devan accepted a 2 months bill for Rs. 2000. On April 11 Chandran sends the bill to his bank for collection. On due date the amount is collected. Give journal entries in the book of both the parties.

Answer 1

Journal (In the book of Chandran)

Journal (In the book of Devan)

Date	Particulars	LF	Debit	Credit
10/3/04	Purchase A/c  Dr   To Chandran A/c (Purchased goods an credit)		2,000	2,000
10/3/04	Chandran A/c   Dr   To Bills payable A/c (Acceptance given)		2,000	2,000
13/4/04	Bill payable A/c   Dr   To Cash A/c (Met the bill on maturity)		2,000	2,000