Date
|
Particulars
|
LF
|
Debit (Rs)
|
Credit (Rs)
|
1
|
Jones A/c ....Dr.
|
|
20000
|
|
|
To Bills Payable A/c
|
|
|
20000
|
|
[Being the bill is
accepted]
|
|
|
|
2
|
Bills Payable A/c ....Dr.
|
|
20000
|
|
|
To Jones A/c
|
|
|
20000
|
|
[Being the bill is
dishonoured]
|
|
|
|
3
|
Interest A/c ....Dr.
|
|
150
|
|
|
To Jones's A/c
|
|
|
150
|
|
[Being the interest is
charged]
|
|
|
|
4
|
Jones A/c ....Dr.
|
|
10150
|
|
|
To Bank A/c
|
|
|
10150
|
|
[Being the part payment is
made along with interest]
|
|
|
|
5
|
Jones A/c ....Dr.
|
|
10000
|
|
|
To Bills Payable A/c
|
|
|
10000
|
|
[Being the new bill is
accepted]
|
|
|
|
6
|
Bills payable A/c ....Dr.
|
|
10000
|
|
|
To Jones's A/c
|
|
|
10000
|
|
[Being the new bill is
dishonoured]
|
|
|
|
7
|
Jones's A/c ....Dr.
|
|
10000
|
|
|
To Bank A/c
|
|
|
8000
|
|
To Deficiency A/c
|
|
|
2000
|
|
[being the drawee become
insolvent and only 80% of the amount could be recovered from her estate]
|
|
|
|
Advertisement
Karthik accepted a bill for Rs. 20,000/- drawn by Jones at three months. Jones got the bill discounted with his bank for Rs. 19,900. Before the due date Karthik approached Jones for renewal of the bill. Jones agreed on the condition that Rs. 10,000/- be paid immediately together with interest on the remaining amount at 6% p.a. For balance Karthik should accept a new bill for three months. These arrangements were carried through but afterwards, Karthik become Insolvent and only 80 % of the amount could be recovered from his estate. Give journal entries in the books of Karthik.
Journal Entries in the Books
of Karthik