Date
|
Particulars
|
LF
|
Debit
(Rs)
|
Credit
(Rs)
|
? 1.
|
Archana's A/c … Dr.
|
|
20000
|
|
|
To Sales A/c
|
|
|
20000
|
|
[Being the goods are sold]
|
|
|
|
2.
|
Cash/Bank A/c … Dr.
|
|
10000
|
|
|
To Archana's A/c
|
|
|
10000
|
|
[Being the part payment is made]
|
|
|
|
3.
|
Bills Receivable A/c …Dr.
|
|
10000
|
|
|
To Archana's A/c
|
|
|
10000
|
|
[Being the Bill is drawn]
|
|
|
|
3.
|
Bank A/c …Dr.
|
|
9600
|
|
|
Discount A/c … Dr.
|
|
400
|
|
|
To Bills Receivable A/c
|
|
|
10000
|
|
[Being the Bill is discounted with the bank]
|
|
|
|
4.
|
Archana's A/c … Dr.
|
|
10000
|
|
|
To Bank's A/c
|
|
|
10000
|
|
[Being the discounted bill is dishonoured]
|
|
|
|
5.
|
Archana's A/c … Dr.
|
|
120
|
|
|
To Interest A/c
|
|
|
120
|
|
[Being Interest is charged on balance amount]
|
|
|
|
6.
|
Cash / Bank A/c … Dr.
|
|
6120
|
|
|
To Archana's A/c
|
|
|
6120
|
|
[Being the part payment is made along with interest]
|
|
|
|
7.
|
Bills Receivable A/c …Dr.
|
|
4000
|
|
|
To Archana's A/c
|
|
|
4000
|
|
[Being the New bill is drawn for balance amount]
|
|
|
|
8.
|
Cash/Bank A/c …… Dr.
|
|
4000
|
|
|
To Bills Receivable A/c
|
|
|
4000
|
|
[Being the second bill is duly honoured]
|
|
|
|
Advertisement
Archana purchased goods from Babita on credit for Rs. 20,000. On next day Archana paid Rs. 10,000 to Babita and accepted a bill drawn by Babita for the balance amount for four months. Babita discounted the bill with her bank for Rs. 9600/-. Before the due date Archana approached Babita with a request to renew the Bill. Babita agreed with the condition that Archana should pay Rs. 6000 along with interest of Rs. 120 and accept a new bill for the balance. These arrangements were duly carried out. New bill is met on the due date. Pass journal entries in the books of Babita.
Archana purchased goods from Babita on credit for Rs. 20,000. On next day
Archana paid Rs. 10,000 to Babita and accepted a bill drawn by Babita for the
balance amount for four months. Babita discounted the bill with her bank for
Rs. 9600/-. Before the due date Archana approached Babita with a request to
renew the Bill. Babita agreed with the condition that Archana should pay Rs.
6000 along with interest of Rs. 120 and accept a new bill for the balance.
These arrangements were duly carried out. New bill is met on the due date. Pass
journal entries in the books of Babita.
Solution:
Journal Entries
in the booms of Babita.