Date
|
Particulars
|
LR
|
Debit
(Rs)
|
Credit
(Rs)
|
?
1
|
Bills
Receivable A/c ......Dr.
|
|
15000
|
|
|
To
Moon's A/c
|
|
|
15000
|
|
[Being
the bill is drawn]
|
|
|
|
2
|
Bank
A/c ......Dr.
|
|
14625
|
|
|
Discount
A/c ......Dr.
|
|
375
|
|
|
To
Bills Receivable A/c
|
|
|
15000
|
|
[Being
the bill is discounted]
|
|
|
|
3.
|
Moon's
A/c ......Dr.
|
|
15000
|
|
|
To
Bank's A/c
|
|
|
15000
|
|
[Being
the discounted bill is dishonoured]
|
|
|
|
4
|
Moon's
A/c ......Dr.
|
|
25
|
|
|
To
Interest A/c
|
|
|
25
|
|
[Being
the interest is charged]
|
|
|
|
5
|
Cash
A/c ......Dr.
|
|
12000
|
|
|
To
Moon's A/c
|
|
|
12000
|
|
[Being
the part payment is made]
|
|
|
|
6
|
Bills
Receivable A/c ......Dr.
|
|
3025
|
|
|
To
Moon's A/c
|
|
|
3025
|
|
[Being
the new bill is drawn along with interest]
|
|
|
|
7
|
Bank
A/c ......Dr.
|
|
3015
|
|
|
Rebate
A/c ......Dr.
|
|
10
|
|
|
To
Bills Receivable A/c
|
|
|
3025
|
|
[Being
the new bill is retires]
|
|
|
|
Advertisement
Sun draws a bill on Moon for Rs. 15,000 at 3 months. Moon accepts the bill and return to Sun. Sun discounted the bill @ 10 % p.a. with the bank. On Maturity Moon finds herself unable to make payment of the bill and requested Sun to renew the bill. Sun accepts the proposal on the condition that Moon should Pay Rs. 12,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrangements were carried through. Moon retires the bill by paying Rs. 3015/- Pass Journal Entries in the books of Sun.
Journal
Entries in the books of Sun