On 1st April, 2024, X sells goods to Y for 25,000 plus IGST @ 18% and draws two bills of exchange on him; the first bill for 15,000 for 2 months an...

Question

On 1st April, 2024, X sells goods to Y for 25,000 plus IGST @ 18% and draws two bills of exchange on him; the first bill for 15,000 for 2 months and second bill for the balance for 3 months. Y accepts and returns these bills to X. Both the bills are sent to the bank for collection on 1st April, 2024. In due course, X receives the information from the bank on the due date of the respective bill that the bill for 15,000 has been duly met and the other bill has been dishonored. Noting charges paid on the dishonour of second bill are 500. Pass the journal entries along with narrations in the books of X. [RTP Jan. 2025]

Accepted Answer

Option : Correct Option. Solution: Journal Entries | Date | Particulars | L.F. | Debit (₹) | Credit (₹) | | :--- | :--- | :---: | ---: | ---: | | Apr 1 | Y A/c
To Sales A/c
To Output IGST A/c
(Being the inter-state sale of goods to Y, charged to IGST @ 18%) | | 29,500 |
25,000
4,500 | | Apr 1 | Bills Receivable (No. 1) A/c
Bills Receivable (No. 2) A/c
To Y
(Being the two bills acceptance one for 15,000 and the other for 14,500 received) | | 15,000
14,500 |

29,500 | | Apr 1 | Bills sent for collection A/c
To Bills Receivable (No. l) A/c
To Bills Receivable (No. 2) A/c
(Being the Bills sent to bank for collection) | | 29,500 |
15,000
14,500 | | July 4 | Bank A/c
To Bills sent for collection A/c
(Being the amount duly collected by bank on first bill) | | 15,000 |
15,000 | | Aug 4 | Y A/c
To Bills sent for collection A/c
To Bank A/c
(Being the second bill dishonored and bank paid 500 as noting charges) | | 15,000 |
14,500
500 |

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