Numerical Questions · Q3
Q.Vishal sold goods for ₹7,000 to Manju on Jan 05, 2016 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank@12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.
Punjab PsebTextbookSubjectiveImportance★★★★★est
35% · 19/55 Questions
✓ Free question
Bill ₹7,000 for 2 months, dated Jan 05, 2016. Maturity = Jan 05 + 2 months = Mar 05, plus 3 days of grace = 08 Mar 2016. Discounted immediately for the full unexpired term of 2 months @12% p.a.: discount = ₹7,000 × 12/100 × 2/12 = ₹140, so the bank pays ₹7,000 − ₹140 = ₹6,860. On maturity Vishal makes no entry (the bill is the bank's property); Manju, the acceptor, pays ₹7,000 to the bank.
Books of Vishal
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2016 Jan 05 | Manju's A/c Dr. | 7,000 | ||
| To Sales A/c | 7,000 | |||
| (Sold goods to Manju on credit) | ||||
| 2016 Jan 05 | Bills Receivable A/c Dr. | 7,000 | ||
| To Manju's A/c | 7,000 | |||
| (Received Manju's acceptance payable after 2 months) | ||||
| 2016 Jan 05 | Bank A/c Dr. | 6,860 | ||
| Discount A/c Dr. | 140 | |||
| To Bills Receivable A/c | 7,000 | |||
| (Bill discounted with bank @12% p.a. for 2 months, discount ₹140) | ||||
| On maturity (08 Mar 2016): No entry — the bill is the bank's property. |
Books of Manju
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 2016 Jan 05 | Purchases A/c Dr. | 7,000 | ||
| To Vishal's A/c | 7,000 | |||
| (Purchased goods from Vishal on credit) | ||||
| 2016 Jan 05 | Vishal's A/c Dr. | 7,000 | ||
| To Bills Payable A/c | 7,000 | |||
| (Accepted Vishal's draft payable after 2 months) | ||||
| 2016 Mar 08 | Bills Payable A/c Dr. | 7,000 | ||
| To Bank A/c | 7,000 | |||
| (Met the acceptance on maturity) |
✓Final answer
Discount on discounting = ₹140 (₹7,000 × 12% × 2/12); bank credits ₹6,860; maturity date 08 Mar 2016. Vishal records no entry on maturity; Manju pays ₹7,000 to the bank on the due date.
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.