Practical Problem 13
SOLUTION:
Journal Entries In the books of Bharti | ||||
Date | Particular | L.F | Amount | Amount |
a. | Bank A/c…………………………………………………………………………………Dr | 15,600 | ||
Bank Charges……………………….………………………………………………..Dr | 150 | |||
To Bank for Collection A/c | 15750 | |||
(Being Bill sent for collection honored on due date) | ||||
b | Nitin A/c…………………………………………………………………………………Dr | 22,200 | ||
To Bill Receivable A/c | 22,200 | |||
(Being bill cancelled on request of Nitin) | ||||
Nitin A/c…………………………………………………………………………………Dr | 500 | |||
To Interest A/c | 500 | |||
(Being Interest Charged on Balance Due) | ||||
Cash A/c…………………………………………………………………………………Dr | 2,700 | |||
To Nitin A/c | 2,700 | |||
(Being Part Payment Received along with interest) | ||||
New Bill Receivable A/c……………………………………………………….Dr | 20,000 | |||
To Nitin A/c | 20000 | |||
(Being New bill for the balance due accepted by Nitin) | ||||
c | Dhanshri A/c…………………………………………………………………………Dr | 17,500 | ||
To Bills Receivable A/c | 17500 | |||
(Being Bill Dishonored) | ||||
Cash A/c………………………………………………………………………………..Dr | 7,000 | |||
Bad Debts A/c ……………………………………………………………………….Dr | 10,500 | |||
To Dhanshri A/c | 17,500 | |||
(Being Dhanshri declared insolvent and only 40% of balance due | ||||
received) | ||||
d. | Bills Payable A/c …………………………………………………………………..Dr | 9,450 | ||
To Discount A/c | 450 | |||
To Bills Receivable A/c | 9,000 | |||
( Being Our acceptance to Savita cleared by endorsing Pravin | ||||
Acceptance to Savita and Discount Received) | ||||
TOTAL | 1,05,600 | 1,05,600 | ||