Q.On 1st January, 2017 Vyshnavi sold goods to Sujatha worth ₹ 8,000 and drew a bill on Sujatha payable after three months. After securing Sujatha's acceptance Vyshnavi discounted the bill with his bank at 12% p.a. on 1st February, 2017 on the due date the bill is honoured.
Pass necessary journal entries in the books Vyshnavi.

Satyam sells goods ₹9,000 to Sivam, receives his 2-month acceptance, then endorses that bill to creditor Sundaram on 1 July. Endorsement clears Sundaram's account. When the endorsed bill is honoured on the due date (4 Aug 2022), Satyam is no longer connected with it, so no entry is required in his books.

This is a standard AP Inter 2nd-year (Commerce) endorsement-of-a-bill question, following the NCERT/CBSE-aligned commerce treatment.

Journal in the books of Satyam

Sankar is the drawer. He sells goods on credit, receives Bhaskar's acceptance as a Bills Receivable, and at once discounts it with his bank. Discount = 20,000 x 10% x 3/12 = Rs 500, so the bank credits Rs 19,500. Because the bill was discounted, the bank (not Sankar) collects it on maturity; since it is honoured, no further entry is needed in Sankar's books.

Discount calculation: 20,000 x 10/100 x 3/12 = Rs 500. Net cash received = 20,000 − 500 = Rs 19,500.

Journal in the books of Sankar

Record four points in Vyshnavi's (drawer's) books: sale of goods, receipt of Sujatha's acceptance, discounting of the bill with the bank, and the honour on the due date. Discounting on 1-2-2017 for the two-month unexpired period at 12% p.a. costs 160, so the bank pays 7,840. Since the bill is honoured after being discounted, no further entry is needed in Vyshnavi's books on the due date.

This is a bills-of-exchange (discounting) question from the AP Inter 2nd-year (Class 12) Accountancy previous-year paper; the AP commerce syllabus follows the same bill accounting as the NCERT/CBSE commerce curriculum.

Working — discount

Bill dated 1-1-2017, payable after 3 months -> due date 4-4-2017 (including 3 days of grace). Discounted on 1-2-2017, so the unexpired period is about 2 months. Discount = 8,000 x 12/100 x 2/12 = 160. Bank pays 8,000 - 160 = 7,840.

Journal Entries in the books of Vyshnavi

Record the credit sale, the bill acceptance, and the endorsement to Sundaram; on the due date (4 Aug 2013) the bill is honoured, so no entry is needed in Satyam's books.

Due date: 1 June 2013 + 2 months = 1 Aug 2013, + 3 days of grace = 4 August 2013.

Journal entries in the books of Satyam