Hello everyone, welcome to another lecture
We have seen the meaning of bill of exchange, we have seen
the concept, we have seen the difference with the
promissory note and and and and and we have also seen the
calculation of due date
Now let's discuss the accounting aspect, how to make
journal entries, let's discuss that
The notes are flashing in front of you, you just have to
listen and understand, there is no need to write much in
today's clip
Listen and understand, I will also put aside the writing
pad, because you will need more brain
Keep your ears and brain open, there is no need for
anything else
In the books of drawer, seller and in the books of drawer,
buyer, you have to learn accounting for both
Who is the seller drawer? The person who sells the goods,
who is the seller
And then he makes the bill, he says to the buyer, see, pay
me on time, sign on this document
He also becomes a drawer in that case, okay sir
And who is the drawer? The one who accepts, who says, yes,
I will pay, i.e.
the buyer
The one who has bought the goods, he will pay, i.e.
the buyer
We will see the entry of both here, basically if we say in
simple words, seller and buyer
We will see how the journal entries of both are here
So friends, first we will talk about the seller, then we
will talk about the buyer, not one by one
So first of all, the seller will do Udhaar sale, the
general entry of Udhaar sale
It was taught to you in the chapter of general entry, it
was taught in Tally, it was taught everywhere
The general entry of Udhaar sale will be debtor account,
debit to sale account
Means there is a sale, so there will be income, money will
come and go on the basis of accrual
And according to the rule of credit all income and gain,
the sale account will be created
And the person to whom you have sold Udhaar goods, you will
sit holding his neck
We will debit it in our book, that brother, look, I gave
you Udhaar goods, till the time I don't pay you
I will not let you go, I will hold your neck and keep it
here, we will debit it, we will hold it
Debtor account, debit to sale account, sir, what is written
here by oblique
You can also use the word buyer instead of debtor, it is
written here
You can also use the word buyer instead of debtor
What will happen after that, this is the topic of bill of
exchange
Now you have held the neck of the buyer and you are not
letting him go
The buyer says, I told you before that I need time of 2-3
months, I need time of 3 months to make payment
Brother, let him go, why did you sit holding your neck?
The buyer is saying to the seller, so the seller will say,
okay, you have to go, go
But our sir taught in the concept, give in writing that you
will pay us after 2-3 months
Whatever time you are asking, if you are asking for 3
months, then okay, give 3 months time
But give this thing in writing that you will pay us after 3
months
And what will you give by writing, the seller is saying, we
are making a bill, we are writing that we have sold you
goods
You promise payment after 3 months, sign it and give
Then the buyer said, okay, the debtor said, okay, you make
the bill, I am ready to sign, leave my neck
Then the seller will draw a bid, write on it that we have
sold so much goods to the buyer
Sold on this date, he promised payment after 3 months
If he does not pay after 3 months, then we will take action
and go to the court against him
The seller signs on it and stops the buyer and tells the
buyer to sign
Like Paresh Rawal says in Hera Pheri, you are signing, now
the buyer signs on it
And after signing, returns the seller
Then the seller says to the buyer, go son, now you go
His entry is done, the bill is receivable
What has come to the seller, the proof has come, a document
has come in writing
The proof has come by which he will get money tomorrow
What is the name of that proof, bills receivable is called
that letter
The bill by which the money will be received in the future
is called bills receivable
He came and we said to the debtor, now you go brother, to
debtor account
BR came, the debtor left, we left his neck
Bill receivable account debit to debtor account, this
general entry will be passed
Okay sir, no problem
Sir, is there any entry to make that bill?
Signs will be accepted, it will come to you, you will let
the debtor go, then there will be an entry
Then there will be an entry, otherwise there will be no
entry
Okay sir, there is no entry for the first thing
Next, now what will happen, now there will be a wait of 3
months
And after 3 months, two things can happen
There used to be a serial called Office Office
In that, the father of Shahid Kapoor, Mr.
Pankaj Kapoor was in the lead role
He used to go to the government offices to get his work done
And he was crazy about government offices, a serial
basically
That work is not done easily there, it is sent from one
table to another
So there was such a government official sitting in that
serial, he was fat
He used to say that if this does not happen, then two
things will happen
If this happens, then two things will happen
I remembered that when I told you that after 3 months of
waiting, two things will happen
First thing, either the buyer will pay the seller or the
buyer will not pay the seller
One of these two will happen
If the buyer pays the seller, then the seller will get the
money
He will debit his bank or cash account and will cancel the
bill receivable
Because that bill receivable, that letter, because of which
he had to get the money
Now that letter is of no use, he credits it and finishes it
Because of which he had to get the money, because of which
he got the money
Now what to do with it
As long as he had to get the money, he had to debit the
bill receivable
Now that he got the money, he credits it and finishes it
And if the second thing happens, if he says that he does
not get the money
Then the second entry was yours, bill receivable account
debit to debtor
He will reverse it
Debtor's account debit to bill receivable account
The second entry was that, because of which the debtor took
his neck and gave us the bill
Now that bill is not clear, if there is no work, then what
will we do
We will reverse the second entry, we will catch the debtor
again
And throw the bill and say that it is of no use
Debtor's account debit to bill receivable account
Ok sir fine
After that, friends come to the buyer
There is no heavy work for the buyer
First entry to buy a loan
Purchase account debit to creator account
Ok sir
We will buy the goods, the purchase account will be debited
And since we bought a loan, a liability will also come in
the name of the creator
So we will create the creator account
Entry will be made, purchase account debit to creator
account
That is, a liability has been created in the buyer's book
in the name of the creator
That I have to pay the creator
Means the buyer took his neck to the seller
He created the creator as a liability
Now what will happen
Now he will release his neck, finish the liability
And in return, he will give a letter by signing
That yes, I am ready to pay
So the liability called creator will end
Creator account debit to bill receivable account
What does this person have to do?
Have to make a payment
Because of that letter
The letter on which he has signed
So basically now its liability is that letter
Not creditor, that letter
That's why the liability called creator is over
And create a new liability in the name of bill receivable
To bill receivable account
And friends, friends
When three months will wait
After that, if he makes a payment
Then its liability called bill receivable will also end
Bill receivable account debit to bank
And if he does not make a payment
Then the second entry will be reversed
Bill receivable is over
And the creator will be alive again
Because he did not make a payment
Bill receivable account debit to creator
Means if you make a payment
Bill receivable account debit to bank or cash
If not, bill receivable account debit to creditor account
Bill receivable account debit to creditor account
Okay sir
So this is basically we have
Drawer and seller books
And buyer
General entries in both seller and buyer books
In the case of bills of exchange
It was a normal case
Normal case means
When the seller made a sale
The buyer gave him the bill
Signed and seller made
The buyer signed and returned it
Waited for three months
And after three months
After three months
The seller either cleared the bill
Or it was dishonored
We can have more cases
Like endorsement
Like discounting of the bill
Like bill sent for collection
Like retirement of the bill
Like renewal of the bill
I will show you their notes
Discounting of bill
Endorsement of bill
Retirement of bill
Renewal of bill
And bill sent for collection
Insolvency This can also be a case
Sir, there are so many general entries
That's what I want to explain to you
The general entries we have done today
There is no tension after this
Because we have seen the base general entries
When the bill is retained till maturity
Means Until the seller keeps the bill of exchange with him
And after three months
He takes it to clear
So what are the entries
Even if it is cleared
Even if it is not
Even if it is dishonored
Now all the entries in the future
Will be made after seeing them
All of them
There will be a difference of one point
Whether it is discounting
Whether it is retirement
Whether it is renewal
Whether it is insolvency
There will be a difference of one point
Okay sir
So it is very important to revise them
After that, the things will be understood
See you in the next clip
Thank you
Bye bye
Take care
If you don't do revision
Then you won't understand the next entries
Keep this in mind
All are linked
It is very important to revise
Bye everyone
You