Sagar owes Sindhu Rs. 8000 Sagar accepted a bill for 3 months by Sindhu for Rs. 8000. Sindhu discounted the bill with bank at Rs. 7800. On the due date, the bill was dishonoured. Noting charges amounted to Rs. 20. Sagar Paid half the amount of the bill and full amount of the noting charges including interest of Rs. 100. Pass journal entries in the books of Sindhu and show the account of Sagar.




Journal Entries in the Books of Sindhu


Date
Particulars
LF
Debit
(Rs)
Credit
(Rs)
1.
Bills Receivable A/c ....Dr.

8000


To Sagar's A/c


8000

[Being the bill is drawn]



2.
Bank A/c ....Dr.

7800


Discount A/c ....Dr.

200


To Bills Receivable A/c


8000

[Being the bill is discounted]



3.
Sagar's A/c ....Dr.

8020


To Bank A/c


8020

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



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

100


To Interest A/c


100

[Being the Interest is Charged]



5
Bank A/c ....Dr.

4120


To Sagar's A/c


4120

[Being the part payment is made along with Interest and Noting Charges]]



6
Bills Receivable A/c ....Dr.

4000


To Sagar's A/c


4000

[Being the new bill is drawn]





In the Books of Sindhu

Sagar's A/c


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

8000
1.
By Bills Receivable A/c

8000
2.
To Bank A/c

8020
4.
By Bank A/c

4120
3.
To Interest A/c

100
5
By Bills Receivable A/c

4000



6120



6120