# 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