Pradeep informed Rahul that, Vijay’s
acceptance for Rs. 1,000 endorsed to Pradeep has been dishonoured. Noting
charges amounted to Rs. 50.
Nilesh renews his acceptance to
Rahul for Rs. 600 by paying Rs. 200 in cash and accepting a fresh bill for
balance plus interest at 12% p.a. for 3 months.
Prashant’s acceptance to Rahul for
Rs. 3,000 retired one month before due date at a discount of 12% p.a.
Bank informs Rahul as to the
dishonour of Aviraj’s acceptance for Rs. 1,000 to Rahul, discounted with the
bank. Noting charges are Rs. 20.
Journal Entries
in the Books of Rahul.
Sr. No.

Particulars

JF

DEBIT

CREDIT

a.

Vijay's A/c
....Dr.

1050



To Pradeep's
A/c



1050


[Being the
Endorsed bill is dishonoured along with Noting Charges]




b. i.

Nilesh's
A/c ...Dr.


600



To Bills
Receivable A/c



600


[Being the
Bill is dishonoured]




ii.

Nilesh's
A/c ...Dr.


12



To Interest
A/c



12


[Being the
Interest is charged]




iii.

Cash A/c ...Dr.


200



To Nilesh's
A/c



200


[Being the
part – payment is made]




iv.

Bills
Receivable A/c ...Dr.


412



To Nilesh's
A/c



412


[Being the
new bill is drawn along with interest]




c.

Bank A/c ...Dr.


2970



Rebate A/c ...Dr.


30



To Bills Receivable
A/c



3000


[Being the
bill is retired. ]




d.

Aviraj's
A/c ...Dr.


1020



To Bank A/c



1020


[Being the
discounted bill is dishonoured along with noting charges]



