Following was the position of debtor and creditor of Gautam as on 1.1.2017.
| Name | Debtors (₹) | Creditors (₹) |
|---|---|---|
| Babu | 5,000 | — |
| Chanderkala | 8,000 | — |
| Kiran | 13,500 | — |
| Anita | 14,000 | — |
| Anju | — | 5,000 |
| Sheiba | — | 12,000 |
| Manju | — | 6,000 |
The following transactions took place in the month of Jan 2017:
Jan 2 — Drew on Babu at two months after date at full settlement for ₹4,800. Babu accepted the bill and returned it on 5.1.2017.
Jan. 04 — Babu's bill discounted for ₹4,750.
Jan. 08 — Chanderkala sent a promissory note for ₹8,000 payable three months after date.
Jan. 10 — Promissory note received from Chanderkala discounted for ₹7,900.
Jan. 12 — Accepted Sheiba draft for the amount due payable two months after date.
Jan. 22 — Anita sent his promissory note payable after two months.
Jan. 23 — Anita's promissory note endorsed in favour of Manju.
Jan. 25 — Accepted Anju's draft payable after three months.
Jan. 29 — Kiran sent ₹2,000 in cash and a promissory note for the balance payable after three months.
Record the above transactions in the proper subsidiary books.
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Start your 14-day free trial to unlock the full solution →Opening debtors ₹40,500 (Babu 5,000, Chanderkala 8,000, Kiran 13,500, Anita 14,000); opening creditors ₹23,000 (Anju 5,000, Sheiba 12,000, Manju 6,000). Bills Receivable Book: Babu ₹4,800 (2 months from Jan 02 → due 05 Mar 2017; full settlement of ₹5,000, so ₹200 discount allowed), Chanderkala P/N ₹8,000 (3 months from Jan 08 → due 11 Apr 2017), Anita P/N ₹14,000 (2 months from Jan 22 → due 25 Mar 2017), Kiran P/N ₹11,500 (balance after ₹2,000 cash; 3 months from Jan 29 → due 02 May 2017) — total ₹38,300. Bills Payable Book: Sheiba ₹12,000 (2 months from Jan 12 → due 15 Mar 2017), Anju ₹5,000 (3 months from Jan 25 → due 28 Apr 2017) — total ₹17,000. Discounting: Babu's ₹4,800 bill for ₹4,750 (discount ₹50); Chanderkala's ₹8,000 note for ₹7,900 (discount ₹100). Anita's ₹14,000 note endorsed to Manju; ₹2,000 cash received from Kiran.
Opening balances (as on 1 Jan 2017)
| Name | Debtors (₹) | Creditors (₹) |
|---|---|---|
| Babu | 5,000 | — |
| Chanderkala | 8,000 | — |
| Kiran | 13,500 | — |
| Anita | 14,000 | — |
| Anju | — | 5,000 |
| Sheiba | — | 12,000 |
| Manju | — | 6,000 |
| Total | 40,500 | 23,000 |
Bills Receivable Book
| Date | Party | Amount (₹) | Term | Due date | Remarks |
|---|---|---|---|---|---|
| 2017 Jan 02 | Babu | 4,800 | 2 months | 05 Mar 2017 | Bill drawn on Babu (accepted 05.01.2017) in full settlement of ₹5,000, discount allowed ₹200; discounted 04.01.2017 for ₹4,750 |
| 2017 Jan 08 | Chanderkala | 8,000 | 3 months | 11 Apr 2017 | Promissory note received; discounted 10.01.2017 for ₹7,900 |
| 2017 Jan 22 | Anita | 14,000 | 2 months | 25 Mar 2017 | Promissory note received; endorsed to Manju on 23.01.2017 |
| 2017 Jan 29 | Kiran | 11,500 | 3 months | 02 May 2017 | Promissory note for balance after ₹2,000 received in cash |
| Total | 38,300 |
Bills Payable Book
| Date | Party | Amount (₹) | Term | Due date | Remarks |
|---|---|---|---|---|---|
| 2017 Jan 12 | Sheiba | 12,000 | 2 months | 15 Mar 2017 | Accepted Sheiba's draft for the amount due |
| 2017 Jan 25 | Anju | 5,000 | 3 months | 28 Apr 2017 | Accepted Anju's draft for the amount due |
| Total | 17,000 |
In the Books of Gautam — Journal (entries not passing through the subsidiary books)
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2017 Jan 02 | Discount Allowed A/c Dr. | 200 | ||
| To Babu's A/c | 200 |
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