Ameet draws a bill for Rs. 7500 on Tushar for four months. Ameet discounts the bill with the bank at 8%p.a. On the due date Tushar requested Ameet to accept Rs. 4,700 (including Rs. 200 for interest) and to draw a bill for the balance of three months. Ameet agrees this proposal. Before the due date of the new bill Tushar retires the bill for Rs. 2960. Pass the journal entries in the books of Tushar and open Tushar’s account in the books of Ameet.Journal Entries in the Books of Tushar



Journal Entries in the Books of Tushar  

Date
Particulars
LF
Debit
(Rs)
Credit
(Rs)
? 1
Ameet's A/c ....Dr.

7500


To Bills Payable A/c


7500

[Being the bill is accepted]



2
Bills Payable A/c ....Dr.

7500


To Ameet's A/c


7500

[Being the bill is dishonoured]



3
Interest A/c ....Dr.

200


To Ameet's A/c


200

[Being the Interest is charged]



4
Ameet's A/c ....Dr.

4700


To Bank A/c


4700

[Being the part payment is made]



5
Ameet's A/c ....Dr.

3000


To Bills Payable A/c


3000

[Being the part payment is made]



6.
Bills Payable A/c ....Dr.

3000


Bank A/c ....Dr.


2960

To Discount A/c


40

[Being the new bill is retired]





In the Books of Ameet  
        
Tushar's A/c


Date
Particulars
J
F
Amount
Date
Particulars
J
F
Amount
?
To Balance b/d

7500
1.
By Bills Receivable A/c

7500
2.
To Bills Receivable A/c

7500
4.
By Bank A/c

4700
3.
To Interest A/c

200
5
By Bills Receivable A/c

3000



15200



15200