Badrinath informs
Kedarnath that Aloknath's Acceptance of Rs. 16,000 endorsed to Badrinath has
been dishonoured and noting charges amounted to Rs. 500.
Somnath renews his acceptance of Rs. 14,400 to Kedarnath by
paying cash Rs. 4,400 and accepting a new bill for 2 months for the balance
plus interest @ 12% p.a.
Vishwanath retired his acceptance for Rs. 10,500 to
Kedarnath by paying in cash Rs. 10,250.
Recovered only 50% of the amount due from his private estate
of Ramnath, who declared as insolvent, against his bill of Rs. 12,500.
Journal Entries
in the books of Kedarnath.
Sr. No.

Particulars

JF

DEBIT

CREDIT

a.

Aloknath's
A/c .....Dr.

16500



To
Badrinath A/c



16500


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




b. i.

Somnath's
A/c .....Dr.


14400



To Bills
Receivable A/c



14400


[Being the
bill is dishonoured]




ii.

Somnath's
A/c .....Dr.


200



To Interest
A/c



200


[Being the
Interest is charged]




iii.

Cash A/c .....Dr.


4400



To
Somnath's A/c



4400


[Being the
part – payment is made]




iv.

Bills
Receivable A/c .....Dr.


10200



To
Somnath's A/c



10200


[Being the
new bill is drawn along with interest]




c.

Cash A/c .....Dr.


10250



Rebate A/c .....Dr.


250



To Bills Receivable
A/c



10500


[Being the
bill is retired]




d. i.

Ramnath's
A/c .....Dr.


12500



To Bills Receivable
A/c



12500


[Being the
bill is dishonoured]




ii.

Bank A/c .....Dr.


6250



Bad Debts
A/c .....Dr.


6250



To
Ramnath's A/c



12500


[Being the
drawee become insolvent and only 50% of the amount due could be recovered
from his estate]



