Date
|
Particulars
|
LF
|
Debit (Rs)
|
Credit (Rs)
|
? 1
|
Bills Receivable A/c .......Dr.
|
|
10000
|
|
|
To Ajith's A/c
|
|
|
10,000
|
|
[Being the bill is drawn]
|
|
|
|
2
|
Bank A/c .......Dr.
|
|
9700
|
|
|
Discount A/c .......Dr.
|
|
300
|
|
|
To Bills Receivable A/c
|
|
|
10000
|
|
[Being the bill is
discounted]
|
|
|
|
3
|
Ajith's A/c .......Dr.
|
|
10000
|
|
|
To Bank A/c
|
|
|
10000
|
|
[Being the discounted bill
is dishonoured]
|
|
|
|
4
|
Ajith's A/c .......Dr.
|
|
180
|
|
|
To Interest A/c
|
|
|
180
|
|
[Being the Interest is
charged]
|
|
|
|
5
|
Bank A/c .......Dr.
|
|
7180
|
|
|
To Ajith's A/c
|
|
|
7180
|
|
[Being the part payment is
made along with interest]
|
|
|
|
6
|
Bills Receivable A/c .......Dr.
|
|
3000
|
|
|
To Ajith's a/c
|
|
|
3000
|
|
[Being the new bill is
drawn]
|
|
|
|
7
|
Ajith's A/c .......Dr.
|
|
3000
|
|
|
To Bills Receivable A/c
|
|
|
3000
|
|
[Being the new bill is
dishonoured]
|
|
|
|
8
|
Bank A/c .......Dr.
|
|
750
|
|
|
Bad debts A/c .......Dr.
|
|
2250
|
|
|
To Ajith's A/c
|
|
|
3000
|
|
[Being the drawee become
insolvent and only 25% of the amount could be recovered from her estate]
|
|
|
|
Advertisement
Ajith accepted a bill for Rs. 10,000 drawn by Surya at three months. Surya got the bill discounted with his bank for Rs. 9,700. Before the due date, Ajith approached Surya for renewal of the Bill. Surya agreed on the condition that Rs. 7,000 is paid immediately together with an interest on remaining amount at 18% p.a. for four months and for the balance Ajith should accept a new bill. But afterwards Ajith become insolvent and only 25% of the amount could be recovered from her estate. Pass journal entries in the books of Surya.
Journal Entries in the books
of Surya