Practical Problem 13
Practical problem | Q 13 | Page 307
Journalise the following transactions in the books of Bharti:- |
a) Bank informed that Amit’s acceptance for ` 15,750 sent to bank for collection was honoured and bank |
charges debited were ` 150. |
b) Nitin renewed his acceptance for ` 22,200 by paying ` 2,200 in cash along with interest on balance |
amount at 10% and accepted a fresh bill for the balance for 3 months. |
c) Dhanshri who had accepted Bharti’s bill for ` 17,500 was declared insolvent and only 40% of the amount |
due could be recovered from his estate. |
d) Discharged our acceptance to Savita for ` 9,450 by endorsing Pravin’s acceptance to us ` 9,000. |
SOLUTION:
Journal Entries In the books of Bharti | ||||
Date | Particular | L.F | Amount | Amount |
a. | Bank A/c…………………………………………………………………………………Dr | 15,600 | ||
Bank Charges……………………….………………………………………………..Dr | 150 | |||
To Bank for Collection A/c | 15750 | |||
(Being Bill sent for collection honored on due date) | ||||
b | Nitin A/c…………………………………………………………………………………Dr | 22,200 | ||
To Bill Receivable A/c | 22,200 | |||
(Being bill cancelled on request of Nitin) | ||||
Nitin A/c…………………………………………………………………………………Dr | 500 | |||
To Interest A/c | 500 | |||
(Being Interest Charged on Balance Due) | ||||
Cash A/c…………………………………………………………………………………Dr | 2,700 | |||
To Nitin A/c | 2,700 | |||
(Being Part Payment Received along with interest) | ||||
New Bill Receivable A/c……………………………………………………….Dr | 20,000 | |||
To Nitin A/c | 20000 | |||
(Being New bill for the balance due accepted by Nitin) | ||||
c | Dhanshri A/c…………………………………………………………………………Dr | 17,500 | ||
To Bills Receivable A/c | 17500 | |||
(Being Bill Dishonored) | ||||
Cash A/c………………………………………………………………………………..Dr | 7,000 | |||
Bad Debts A/c ……………………………………………………………………….Dr | 10,500 | |||
To Dhanshri A/c | 17,500 | |||
(Being Dhanshri declared insolvent and only 40% of balance due received) | ||||
d. | Bills Payable A/c …………………………………………………………………..Dr | 9,450 | ||
To Discount A/c | 450 | |||
To Bills Receivable A/c | 9,000 | |||
( Being Our acceptance to Savita cleared by endorsing Pravin Acceptance to Savita | ||||
and Discount Received) | ||||
TOTAL | 1,05,600 | 1,05,600 | ||