Practical Problem 08
Practical problem | Q 8 | Page 306
Seema purchased goods from Roma on credit on 1st August, 2019 for Rs37,000, Seema accepts bill for |
2 months drawn by Roma for the same amount, on the same day Roma discounts the bill with the bank |
for ` 36,200 on 3rd August 2019. On the due date the bill is dishonoured and Noting Charges of ` 160 is paid |
by the bank. Seema pays ` 19,000 and Noting Charges in cash immediately. A new bill is drawn by Roma for |
the balance including interest ` 650 for 2 months, which is accepted by Seema.The new bill is retired one |
month before the due date at a rebate of ` 300. |
Give Journal Entries in the Books of Seema and prepare Seems’s Account in the books of Roma. |
Solution:
Journal Entries In the books of Seema | |||
Date | Particular | Amount | Amount |
2019 | |||
01-08-2019 | Purchase A/c ……………………………………………………………………………………….Dr | 37,000 | |
To Roma A/c | 37,000 | ||
(Being goods purchase on credit) | |||
01-08-2019 | Roma A/c ………………………………………………………………………………………….Dr | 37,000 | |
To Bills Payble A/c | 37,000 | ||
(Being our acceptance given for 2 Month) | |||
04-10-2019 | Bills Payable A/c ……………………………………………………………………………….Dr | 37,000 | |
Noting Charges A/c …………………………………………………………………………..Dr | 160 | ||
TO Roma A/c | 37,160 | ||
(Being bill dishonored on due date and noting charges payable) | |||
04-10-2019 | Interest A/c ……………………………………………………………………………………….Dr | 650 | |
To Roma A/c | 650 | ||
(Being Interest Charged on balance due amount) | |||
04-10-2019 | Roma A/c ……………………………………………………………………………………………Dr | 19,160 | |
To Cash A/c | 19,160 | ||
(Being part payment made along with noting charges paid) | |||
04-10-2019 | Roma A/c ………………………………………………………………………………………….Dr | 18,650 | |
To Bills Payable A/c | 18,650 | ||
(Being our acceptance given for New Bill along with interest for 2 Month) | |||
04-11-2019 | Bills Payable A/c………………………………………………………………………….Dr | 18,650 | |
To Rebate A/c | 300 | ||
To Cash A/c | 18,350 | ||
(Being Bill Retired before due date and rebate received) | |||
Total | 1,68,270 | 1,68,270 | |
In the Books of Roma | |||||
Seema A/c | |||||
Date | Particular | Amount | Date | Particular | Amount |
01-08-2019 | To Sales A/c | 37,000 | 01-08-2019 | By Bill Receivable A/c | 37,000 |
04-10-2019 | To Bank A/c | 37,160 | 04-10-2019 | By Cash A/c | 19,160 |
04-10-2019 | To Interest A/c | 650 | 04-10-2019 | By New Bill Receivable A/c | 18,650 |
74,810 | 74,810 | ||||