# Practical Problem 05

Practical problem | Q 5 | Page 306

 Siddhant sold goods to Sudhir of ` 43,800 on 18th March, 2019. Siddhant draws a bill on Sudhir on the same day for Rs 43,800 for 3 months which was duly accepted by Sudhir. Siddhant discounted the bill on the same day at 8% p.a. the bill was dishonoured on the due date and Sudhir requested Siddhant to accept Rs 13,800 and interest in cash on remaining amount at 12% p.a. Siddhant agreed and for the balance amount accepted a new bill at 2 months. Before the due date of new bill Sudhir retired the bill by paying Rs 29,700. Pass necessary Journal Entries in the Books of Siddhant.

#### Solutions:

 Journal Entries In the books of Siddhant Date Particular L.F Amount Amount 2019 Mar-18 Sudhir’s A/c…………………………………………………………………………………………..Dr 43,800 To Sales A/c 43,800 (Being Goods Sold On Credit) Mar-18 Bill Receivable A/c ……………………………………………………………………………..Dr 43,800 To Sudhir’s A/c 43,800 (Being bill drawn and acceptance received) Mar-18 Cash A/c ……………………………………………………………………………………………..Dr 42,924 Discount A/c ………………………………………………………………………………………Dr 876 To Bill Receivable A/c 43,800 (Being Sudhir Acceptance dishcounted with Bank) Jun-21 Sudhir A/c …………………………………………………………………………………………..Dr 43,800 To Cash/Bank A/c 43,800 (Being Sudhir Acceptance Dishonoured on due Date) Jun-21 Sudhir’s A/c…………………………………………………………………………………………Dr 600 To Interest A/c 600 (Being interest charged for balance due for 2 month from sudhir) Jun-21 Cash A/c …………………………………………………………………………………………….Dr 14,400 To Sudhir’s A/c 14,400 (Being Cash Received along with interest) Jun-21 New Bill Receivale A/c …………………………………………………………………….Dr 30,000 To Sudhir’s A/c 30,000 (Being Sudghir Acceptance Received for New Bill) Cash/Bank A/c………………………………………………………………………………………Dr 29,700 Rebate A/c…………………………………………………………………………………………..Dr 300 To New Bill Receivable A/c 30,000 (Being before due date, Sudhir’s retired the bill with Discount) Total 2,49,600 2,49,600