Practical Problem 07
Solution:
Journal Entries In the books of Meena | ||||
Date | Particular | L.F | Amount | Amount |
1 | Bills Receivable A/c …………………………………………………………………………..Dr | 18,000 | ||
To Priyanka’s A/c | 18,000 | |||
(Being bill Drawn and acceptance is received) | ||||
2 | Sagar’s A/c …………………………………………………………………………………………Dr | 18,000 | ||
To Bills Receivable A/c | 18,000 | |||
(Being bill endorsed in favour of sagar) | ||||
3 | Priyanka’s A/c …………………………………………………………………………………..Dr | 18,000 | ||
To Sagar’s A/c | 18,000 | |||
(Being Bill Cancelled at the request of Priyanka) | ||||
4 | Priyanka’s A/c …………………………………………………………………………………..Dr | 240 | ||
To Interest A/c | 240 | |||
(Being Interst charged for balance amount due) | ||||
5 | Cash A/c …………………………………………………………………………………………….Dr | 6,240 | ||
To Priyanka’s A/c | 6,240 | |||
(Being Part payment made along with interest ) | ||||
6 | New Bill Receivable A/c ……………………………………………………………………Dr | 12,000 | ||
To Priyanka’s A/c | 12,000 | |||
(Being New bill of remaining amount drawn and acceptance Received) | ||||
7 | Priyanka’s A/c …………………………………………………………………………………..Dr | 12,000 | ||
To New Bill Receivable A/c | 12,000 | |||
(Being New Bill dishonored for non payment) | ||||
8 | Cash A/c …………………………………………………………………………………………..Dr | 6,000 | ||
Bad debts A/c ………………………………………………………………………………….Dr | 6,000 | |||
To Priyanka’s A/c | 12,000 | |||
(Being part payment received at the time of insolvency) | ||||
Total | 96,480 | 96,480 | ||