Pankaj purchased goods of ₹20,000 from Omprakash on credit on 15th April 2019. Omprakash draws After Sight bill for the amount due on Pankaj for 3 months which was accepted by Pankaj on 18th April 2019. Omprakash endorsed the bill to his creditor Jagdish in full settlement of his amount ₹21.000. On the due date the bill was dishonored by Pankaj. Give Journal Entries in the Books of Omprakash, Pankaj and Jagdish.

 

Give Journal Entries in the Books of Omprakash, Pankaj and Jagdish. 

Solution:  
In the Books of Omprakash (Drawer)

Date	Particulars	L/F	Debit ₹	Credit ₹
2019
15th April	Pankaj A/c Dr.  To Sales A/c   [Being sold goods to Pankaj on Credit]		20,000	20,000
18th April	Bills Receivable A/c Dr.  To Pankaj A/c  [Being bill drawn and accepted recevied]		20,000	20,000
20th April	Jagdish A/c Dr.  To Bills receivable A/c  To Discount  [Being endorsed the bill with the creditor Jagdish]		21,000	20,000  1,000
23th July	Pankaj A/c Dr.  Discount A/c Dr.  To Jagdish A/c   [Being on due date the bill was dishonored by Pankaj]		20,000  1,000	21,000

In the Books of Pankaj (Drawee)

Date	Particulars	L/F	Debit ₹	Credit ₹
2019
15th April	Purchase A/c Dr.  To Omprakash A/c  [Being purchased goods from Omprakash n credit]		20,000	20,000
18th April	Omprakash A/c Dr.  To Bills payable A/c  [Being accepted the bill]		20,000	20,000
23th April	Bills Payable A/c Dr.  To Omprakash A/c  [being bill dishonored]		20,000	20,000

In the Books of Jagdish (Endorser)