On March 15, 2017 Ramesh sold goods for ₹8,000 to Deepak on credit. Deepak accepted a bill of exchange drawn upon him by Ramesh payable after three months. On April 15 Ramesh endorsed the bill in favour of his creditor Poonam in full settlement of her debt of ₹8,250. On May 15 Po

Question

On March 15, 2017 Ramesh sold goods for ₹8,000 to Deepak on credit. Deepak accepted a bill of exchange drawn upon him by Ramesh payable after three months. On April 15 Ramesh endorsed the bill in favour of his creditor Poonam in full settlement of her debt of ₹8,250. On May 15 Poonam discounted the bill with her bank @ 12% p.a. On the due date Deepak met the bill. Record the necessary journal entries in the books of Ramesh, Deepak and Poonam.

Accepted Answer

> [!TLDR]
> Endorsement of an ₹8,000 bill in full settlement of ₹8,250 gives Ramesh ₹250 discount received; Poonam's discounting one month before maturity @ 12% p.a. costs ₹80 (she gets ₹7,920).

### Books of Ramesh

| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|:---|:---|:---:|---:|---:|
| 2017 Mar 15 | Deepak's A/c Dr. | | 8,000 | |
| | To Sales A/c | | | 8,000 |
| Mar 15 | Bills Receivable A/c Dr. | | 8,000 | |
| | To Deepak's A/c | | | 8,000 |
| Apr 15 | Poonam's A/c Dr. | | 8,250 | |
| | To Bills Receivable A/c | | | 8,000 |
| | To Discount Received A/c | | | 250 |

### Books of Deepak

| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|:---|:---|:---:|---:|---:|
| 2017 Mar 15 | Purchases A/c Dr. | | 8,000 | |
| | To Ramesh's A/c | | | 8,000 |
| Mar 15 | Ramesh's A/c Dr. | | 8,000 | |
| | To Bills Payable A/c | | | 8,000 |
| Jun 18 | Bills Payable A/c Dr. | | 8,000 | |
| | To Bank A/c | | | 8,000 |

### Books of Poonam

Date	Particulars	Debit (₹)	Credit (₹)
2017 Mar 15	Deepak's A/c Dr.	8,000
	To Sales A/c		8,000
Mar 15	Bills Receivable A/c Dr.	8,000
	To Deepak's A/c		8,000
Apr 15	Poonam's A/c Dr.	8,250
	To Bills Receivable A/c		8,000
	To Discount Received A/c		250

Date	Particulars	Debit (₹)	Credit (₹)
2017 Mar 15	Purchases A/c Dr.	8,000
	To Ramesh's A/c		8,000
Mar 15	Ramesh's A/c Dr.	8,000
	To Bills Payable A/c		8,000
Jun 18	Bills Payable A/c Dr.	8,000
	To Bank A/c		8,000

Books of Ramesh

Books of Deepak

Books of Poonam

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