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

Practical Problem 11

SOLUTION:

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