# Practical Problem 10

#### Solution:

 Journal Entries In the books of  Sagar Date Particular Amount Amount 2019 Nov-21 Bill Receivable A/c ………………………………………………………………………Dr 21,000 To Prasad A/c 21,000 (Being bill Drawn and Acceptance Received) Nov-21 Bank A/c ………………………………………………………………………………………Dr 20580 Discount A/c ………………………………………………………………………………..Dr 420 To Bill receivable A/c 21,000 (Being bill Discounted with Bank) Feb-24 Prasad A/c ……………………………………………………………………………………Dr 21000 To Bank A/c 21,000 (Being Bill Cancelled) Feb-24 Prasad A/c ……………………………………………………………………………………Dr 750 To Interest A/c 750 (Being Interest charged on balance due) Feb-24 New Bill Receivable A/c …………………………………………………………….Dr 21,750 To Prasad A/c 21,750 (Being New bill drawn and Acceptance received) Feb-24 Bank for Collection A/c ……………………………………………………………..Dr 21750 To Bill Receivable A/c 21,750 (Being new bill send for collection to bank) Mar-24 Bank A/c …………………………………………………………………………………….Dr 21500 Bank Charges A/c ………………………………………………………………………Dr 250 To Bank For Collection 21,750 (Being Bill send to bank for collection honored and bank charges deducted) Total 1,29,000 1,29,000

 In The Books of Prasad Sagar’s A/c Date Particular Amt Date Particular Amt Nov-21 To Bill Payable 21000 Nov-21 By Balance b/d 21000 Feb-24 To New Bill Payable 21750 Feb-24 By Bill Payable 21000 Feb-24 By Interest 750 42,750 42,750