Practical Problem 11

Practical problem | Q 11 | Page 307

 Journalise the following transaction in the books of Abhishek :- a) Siddhant informs Abhishek that Vineet’s acceptance for  23,000 endorsed to Siddhant has been dishonoured.  Nothing Charges amounted to  430. b) Kajal renews her acceptance to Abhishek for  39,000 by paying 3,000 in cash and accepting a fresh bill for the balance along with interest at 11.5 % p.a. for 3 months. c) Radhika retired her acceptance to Abhishek for  23,000 by paying  22,250 by cheque. d) Abhishek sent a bill of Subodh for  9,000 to bank for collection. Bank informed that the bill has been dishonoured by Subodh.

SOLUTION:

 Journal Entries In the books of Abhishek Date Particular L.F Amount Amount a. Vineet’s A/c …………………………………………………………………………….Dr 23,430 To Siddhant A/c 23,430 (Being Endorse bill Dishonored and noting charges payable) b. Kajal’s A/c ………………………………………………………………………………..Dr 39,000 To Bill receivable A/c 39,000 (Being Bill Cancelled on request of kajal) Kajal’s A/c  ……………………………………………………………………………….Dr 1,035 To Interest A/c 1,035 (Being Interest Charged on Balance Due) Cash A/c …………………………………………………………………………………Dr 3,000 To Kajal’s A/c 3,000 (Being Part Payment Received) New Bill Receivable A/c…………………………………………………..……Dr 37,035 To Kajal’s A/c 37,035 (Being New bill drawn and acceptance received) c. Bank A/c ………………………………………………………………………………Dr 22,250 Discount /Rebate A/c ………………………………….…………………….Dr 750 To Bill Receivable A/c 23,000 (Being bill Retired before due Date) d. Bank for collection A/c ………………………………………………………Dr 9,000 To Bill Receivable A/c 9,000 (Being Subodh Acceptance sent to bank for collection ) Subodh A/c ……………………………………………………………………………Dr 9,000 To Bank for collection A/c 9,000 (BEING BILL SENT to Bank for COLLECTION DISHOURED) Total 1,44,500 1,44,500