# Practical Problem 09

Practical problem | Q 9 | Page 306

 Uday purchased goods from Shankar on credit for ` 35,000 at 10 % Trade discount. Uday paid Rs1,500 immediately and for the balance accepted a bill for 3 months. Before due date Uday approached Shankar with a request to renew the bill. Shankar agreed but with condition that Uday should accept a new bill for 3 months including interest at 12 % p.a. Give Journal Entries in the Books of Shankar

#### Solution:

 Journal Entries In the books of Date Particular Amount Amount 1 Uday A/c……………………………………………………………………………………Dr. 31500 To Sales A/c 31500 (Being goods sold on credit @ 10% Trade discount) 2 Cash A/c……………………………………………………………………………………..DR. 1500 To Uday A/c 1500 (Being Cash received from Uday) 3 Bills Receivable A/c………………………………………………………………………Dr. 30,000 To Uday A/c 30,000 (Being Bill Drawn and acceptance received) 4 Uday A/c ……………………………………………………………………………………..Dr. 30000 To Bill Receivable A/c 30000 (Being bill cancelled at the request of uday) 5 Uday A/c…………….………………………………………………………………………..Dr. 900 To Interest A/c 900 (Being interest amount due) 6 Bill Receivable A/c ………………………………………………………………………Dr. 30900 To Uday A/c 30,900 (Being New bill Drawn with interest and acceptance received) Total 1,24,800 1,24,800