Journal Entries in the Books
of Rama
Date

Particulars

LF

Debit
(Rs)

Credit
(Rs)

? 1

Bills Receivable A/c .... Dr.


4000



To Krishna's A/c



4000


[Being the bill is drawn]




2

Bank A/c .... Dr.


3900



Discount A/c


100



To Bills Receivable A/c



4000


[Being the Bill is discounted]




3.

Krishna's A/c .... Dr.


4020



To Bank A/c



4020


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




4

Krishna's A/c .... Dr.


50



To Interest A/c



50


[Being the interest is charged]




5

Bank A/c .... Dr.


2020



To Krishna's A/c



2020


[Being the Part Payment is Made along with Noting Charges]




6.

Bills Receivable A/c .... Dr.


2050



To Krishna's A/c



2050


[Being the new bill is drawn along with interest]




7.

Bank A/c .... Dr.


2050



To Bills Receivable A/c



2050


[Being the new bill is duly honoured]




In the Books of Rama
Krishna's A/c
Date

Particulars

J
F

Amount

Date

Particulars

J
F

Amount

?

To Balance b/d


4000

1.

By Bills Receivable A/c


4000

2.

To Bank A/c


4020

4.

By Bank A/c


2020

3.

To Interest A/c


50

5

By Bills Receivable A/c


2050




8070




8070
