# 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