On 1/1/2019 Ram drew and shyam accepted a bill at 3 months for 40000.o...
Journal Entries for Ram and Shyam's Transactions:
1. Acceptance of Bill by Shyam:
- Ram's Drawing Account Dr. 40,000
- To Shyam's Acceptance Account 40,000
2. Discounting of Bill by Ram:
- Shyam's Acceptance Account Dr. 40,000
- Discount Received Account Dr. 5,000
- To Ram's Drawing Account 20,000
- To Bank Account 25,000
3. Acceptance of Bill by Ram:
- Shyam's Drawing Account Dr. 3,000
- To Ram's Acceptance Account 3,000
4. Discounting of Bill by Shyam:
- Ram's Acceptance Account Dr. 3,000
- Discount Received Account Dr. 225
- To Shyam's Drawing Account 1,387.5
- To Bank Account 1,837.5
5. Settlement of Bills at Maturity:
- Shyam's Acceptance Account Dr. 40,825
- To Bank Account 40,825
6. Dishonor of Bill by Shyam:
- Ram's Acceptance Account Dr. 40,825
- To Shyam's Acceptance Account 40,825
7. Acceptance of New Bill by Shyam:
- Shyam's Drawing Account Dr. 40,825
- To Ram's Acceptance Account 40,825
The above journal entries reflect the various transactions between Ram and Shyam, including the acceptance and discounting of bills, as well as the subsequent dishonor of one bill and the acceptance of a new bill. It is essential to accurately record these transactions in the books of accounts to maintain proper financial records and ensure transparency in business dealings.
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.