Numerical Questions · Q6
Q.On Jan. 01, 2016 Arun sold goods for ₹30,000 to Sunil. 50% of the payment was made immediately by Sunil on which Arun allowed a cash discount of 2%. For the balance Sunil drew a promissory note in favour of Arun payable after 20 days. Since, the date of maturity of bill was a public holiday, Arun presented the bill on a day, as per the provisions of Negotiable Instrument Act which was met by Sunil. State the date on which the bill was presented by Arun for payment and Jounalise the above transactions in the books of Arun and Sunil.
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Start your 14-day free trial to unlock the full solution →Sale ₹30,000. 50% = ₹15,000 paid immediately; a 2% cash discount = ₹15,000 × 2% = ₹300 is allowed, so cash actually received = ₹14,700. For the other ₹15,000, Sunil draws a promissory note for 20 days. Maturity = Jan 01 + 20 days = Jan 21, plus 3 days of grace = 24 Jan 2016. As 24 Jan 2016 is a public holiday (known in advance), the note becomes due — and is presented — on the preceding business day, 23 Jan 2016. No interest arises.
Books of Arun
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2016 Jan 01 | Cash A/c Dr. | 14,700 | ||
| Discount Allowed A/c Dr. | 300 | |||
| Sunil's A/c Dr. | 15,000 | |||
| To Sales A/c | 30,000 | |||
| (Sold goods to Sunil; 50% received in cash less 2% cash discount) | ||||
| 2016 Jan 01 | Bills Receivable A/c Dr. | 15,000 | ||
| To Sunil's A/c | 15,000 | |||
| (Received Sunil's promissory note payable after 20 days) | ||||
| 2016 Jan 23 | Cash A/c Dr. | 15,000 | ||
| To Bills Receivable A/c | 15,000 | |||
| (Note met on presentation on the preceding business day) |
Books of Sunil
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2016 Jan 01 | Purchases A/c Dr. | 30,000 | ||
| To Cash A/c | 14,700 | |||
| To Discount Received A/c | 300 | |||
| To Arun's A/c | 15,000 |
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