Jain purchased goods worth Rs. 3,000 from Sharma on 1st June 1977 and gave him acceptance on 3rd June for a period of three months. On 15th June Sharma discounted the bill for Rs. 2980. On 6th September, when the bill was presented for payment. Jain dishonoured the same. Rs. 20 was paid as noting charges. Pass journal entries in the books of Sharma and Sharma’s account in the books of Jain.



Journal Entries in the Books of Sharma

Date
Particulars
LF
Debit
(Rs)
Credit
(Rs)
1.6.77
Jain's A/c ....Dr.

3000


To Sales A/c


3000

[Being the Goods Are sold]



3.6.77
Bills Receivable A/c ....Dr.

3000


To Jain's A/c


3000

[Being the bill is drawn]



15.6.77
Bank A/c ....Dr.

2980


Discount A/c ....Dr.

120


To Bills Receivable A/c


3000

{Being the bill is discounted]



6.9.77
Jain's A/c ....Dr.

3020


To Bank A/c


3020

[Being the discounted bill is dishonoured along with Noting Charges]





In the Books of Jain

Sharma's A/c


Date
Particulars
J
F
Amount
Date
Particulars
J
F
Amount
3.6.77
To Bills Payable A/c

3000
1.6.77
By Purchases A/c

3000
6.9.77
To balance b/d

3020
6.9.77
By Bills Payable A/c

3000




6.9.77
By Noting Charges

20



6020



6020