Jyoti owes ₹31,000 to Swati for which was draws a bill on Jyoti for 2 months. The bill was duly accepted by Jyoti. Swati sends the bill to banks for collection. Jyoti honored the bill on the due date and bank charges ₹475 as bank charges. Give Journal Entries in the Books of Swati.

Give Journal Entries in the Books of Swati. 

 

Solution: 

Journal Entry 

In the Books of Swati (Drawer) 

Date	Particulars	L/F	Debit ₹	Credit ₹
1.	Bills Receivable A/c Dr.  To Jyoti A/c  [Being draws a bill on Jyoti for2 months]		31,000	31,000
2.	Bill sent for collection A/c Dr.  To Bills Receivable A/c  [Being Bill sent for collection]		31,000	31,000
3.	Bills Receivable A/c Dr.  To Bill sent for collection  To Bank A/c  [Being Jyoti honored the bill on the due date and paid bank charges]		31,475	31,000  475