Practical Problem 12

Practical problem | Q 12 | Page 307

Journalise the following transactions in the books of Narendra: –

a) Narendra retires his acceptance to Upendra by paying ` 4,000 in cash and endorsing a bill accepted by

Ramlal for ` 5,000.

b) Vikram’s acceptance to Narendra ` 6,000 retired one month before the due date at rebate of 12% p.a.

c) Dilip renews his acceptance to Narendra for ` 12,000 by paying ` 4,000 in cash and accepting a fresh bill

for the balance plus interest at 12% p.a. for 3 months.

d) Bank informed Narendra that, Kartik’s acceptance for ` 13,000 to Narendra, discounted with the bank

was dishonoured and Noting Charges paid by bank ` 140.

Journal Entries In the books of Narendra
Date	Particular	L.F	Amount	Amount

a	Bills Payable A/c…………………………………………………………………Dr		9,000
	To Cash A/c			4,000
	To Bills Receivable A/c			5000
	(Being Upendra’s dues cleared by paying cash & endorsing a bill)

b	Cash A/c……………………………………………………………………………….Dr		5,940
	Rebate A/c…………………………………………………………………………..Dr		60
	To Bills Receivable A/c			6000
	(Being Vikram’s acceptance retired with rebate)

c	Dilip A/c……………………………………………………………………………….Dr		12,000
	To Bills Receivable A/c			12,000
	(Being Bill Cancelled)

	Dilip A/c……………………………………………………………………………….Dr		240
	To Interest A/c			240
	(Being Interest Charged)

	Cash A/c……………………………………………………………………………….Dr		4,000
	To Dilip A/c			4,000
	(Being Part Payment Received)

	New Bills Receivable A/c…………………………………………………….Dr		8,240
	To Dilip A/c			8,240
	(Being New bill accepted along with interest)

d	Karthik A/c…………………………………………………………………………..Dr		13,140
	To Bank A/c			13,140
	(Being Discounted bill with Bank Dishonoured and noting charges
	TOTAL		52,620	52,620