Journal Entries in the Books
of Karthik
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]



