Date
|
Particulars
|
LF
|
Debit (Rs.)
|
Credit (Rs.)
|
? 1
|
Salman's A/c ....Dr.
|
|
90000
|
|
|
To Bills Payable A/c
|
|
|
90,000
|
|
[Being the bill is
accepted]
|
|
|
|
2
|
Bills Payable A/c ....Dr.
|
|
90000
|
|
|
To Salman's A/c
|
|
|
90000
|
|
[Being the bill is
dishonoured]
|
|
|
|
3
|
Interest A/c ....Dr.
|
|
4000
|
|
|
To Salman's A/c
|
|
|
4000
|
|
[Being the interest is
charged]
|
|
|
|
4
|
Salman's A/c ....Dr.
|
|
40000
|
|
|
To Bank A/c
|
|
|
40000
|
|
[Being the part payment is
made]
|
|
|
|
5
|
Salman's A/c ....Dr.
|
|
54000
|
|
|
To Bills Payable A/c
|
|
|
54000
|
|
[Being the new bill is
accepted together with interest]
|
|
|
|
6
|
Bills Payable A/c ....Dr.
|
|
54000
|
|
|
To Salman's A/c
|
|
|
54000
|
|
[Being the new bill is
dishonoured]
|
|
|
|
7
|
Salman's A/c ....Dr.
|
|
54000
|
|
|
To Bank A/c
|
|
|
27000
|
|
To Deficiency A/c
|
|
|
27000
|
|
[Being the drawee become
Insolvent and only 50% of the amount could be recovered from his estate. ]
|
|
|
|
Advertisement
Salman draws a bill on Amithab worth Rs. 90,000 for three months which was accepted by Amithab. On the same date Salman discounted the bill with his bank @ 10 % p.a. On the due date Amithab dishonoured his acceptance. Amithab paid Rs. 40,000/- to Salman and accepted a fresh bill for two months for the balance including interest of Rs. 4000. Amithab became insolvent before the maturity of the bill and 50 paise in a rupee was received at first and final dividend from his estate. Journal entries books of Amithab.
Journal Entries in the Books
of Amithab.