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

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