Bhagyashri sold goods to Rupa worth Rs. 24,000 to Rupa. On the next day Rupa paid Rs. 10,000 in cash and accepted 4 months bill for balance amount drawn by Bhagyashri.

Bhagyashri sold goods to Rupa worth Rs. 24,000 to Rupa. On the next day Rupa paid Rs. 10,000 in cash and accepted 4 months bill for balance amount drawn by Bhagyashri.  Bhagyashri discounted the bill at 10% p.a. after one month with her bank. On due date Rupa dishonoured her acceptance and noting charges amounted to Rs. 200. Rupa paid half the amount of the bill and full amount of noting charges. Rupa accepted a new bill at 2 months for the balance amount plus interest Rs. 100. Pass necessary journal entries in the books of Bhagyashri.

Solution:
Journal Entries in the booms of Bhagyashri

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

24000


To Sales A/c


24000

[Being the goods are sold]



2.
Cash/Bank A/c … Dr.

10000


To Rupa's A/c


10000

[Being the part payment is made]



3.
Bills Receivable A/c …Dr.

14000


To Rupa's A/c


14000

[Being the Bill is drawn]



3.
Bank A/c …Dr.

13650


Discount A/c … Dr.

350


To Bills Receivable A/c


14000

[Being the Bill is discounted with the bank]



4.
Rupa's A/c … Dr.

14200


To Bank's A/c


14200

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



5.
Rupa's A/c … Dr.

100


To Interest A/c


100

[Being Interest is charged on balance amount]



6.
Cash / Bank A/c … Dr.

7200


To Rupa's A/c


7200

[Being the part payment is made along with noting charges]



7.
Bills Receivable A/c …Dr.

7100


To Rupa's A/c


7100

[Being the New bill is drawn for balance amount along with interest]