Date

Particulars

LF

Debit (Rs)

Credit (Rs)

? 1

Ganga's A/c ..... Dr.


4000



To Sales A/c



4000


[Being the goods are sold]




2

Cash A/c ... ..... Dr.


1000



To Ganga's A/c



1000


[Being the part payment is
made]




3

Bills receivable A/c .....
Dr.


3000



To Ganga's A/c



3000


[Being the bill is drawn for
balance amount]




4

Bank A/c ..... Dr.


2925



Discount A/c ..... Dr.


75



To Bills Receivable A/c



3000


[Being the bill is
discounted]




5

Ganga's A/c ..... Dr.


3020



To Bank A/c



3020


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




6

Ganga's A/c ..... Dr.


100



To Interest A/c



100


[Being the interest is
charged]




7

Bank A/c ..... Dr.


1520



To Ganga's A/c



1520


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




8

Bills receivable A/c .....
Dr.


1600



To Ganga's A/c



1600


[Being the new bill is
drawn along with interest]




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Kaveri sold goods to Ganga worth Rs. 4,000 to Ganga. On the next day Ganga paid Rs. 1,000 in cash and accepted 4 months bill for balance amount drawn by Kaveri. Kaveri discounted the bill at 10% p.a. after one month with her bank. On due date Ganga dishonoured her acceptance and noting charges amounted to Rs. 20. Ganga paid half the amount of the bill and full amount of noting charges. Ganga accepted a new bill at 2 months for the balance amount plus interest Rs. 100. Pass necessary journal entries in the books of Kaveri.
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