# 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.

#### SOLUTION:

 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