Question 2: PRACTICAL PROBLEMS On 2nd Jan., 2011 Kiran of Kanpur purchased goods from Kavita of Kedgaon for Rs 4,850

Question 2:

PRACTICAL PROBLEMS

On 2nd Jan., 2011 Kiran of Kanpur purchased goods from Kavita of Kedgaon for Rs 4,850 and gave his acceptance to after date bill for 60 days on 5th Jan, 2011 for the same amount. On the same date Kavita of Kedgaon deposited the bill into bank for collection. On the due date Kiran honoured his acceptance.

You are required to pass journal entries in the books both the parties.

Answer:

Books of Kavita

Journal Entry

Date	Particulars	L.F.	Debit Amount.  Rs.	Credit  Amount  Rs.
2.1.2011	Kiran A/c ... Dr.		4850
	To Sales A/c			4850
	[Being the Goods are Sold]
5.1.2011	Bills Receivable A/c ... Dr.		4850
	To Kiran A/c			4850
	[Being the Bill is drawn]
5.1.2011	Bill Sent for Collection A/c ... Dr.		4850
	To Bills Receivable A/c			4850
	[Being the bill is sent to the bank for collection]
6.3.2011	Bank A/c ... Dr.		4850
	To Bill Sent for Collection A/c			4850
	[Being Bill Sent for collection Honoured on due date]