Date

Particulars

LF

Debit (Rs. )

Credit (Rs.)

1

Ricardo's A/c ..... Dr.


80000



To Bills Payable A/c



80000


[Being the bill is
accepted]




2

Bills Payable A/c .....
Dr.


80000



To Ricardo's A/c



80000


[Being the bill is
dishonoured]




3

Noting charges A/c .....
Dr.


300



To Ricardo's A/c



300


[Being the Noting Charges
is Charged]




4

Interest A/c ..... Dr.


1700



To Ricardo's A/c



1700

5

Ricardo's A/c ..... Dr.


82000



To Bills Payable A/c



82000


[Being the new bill is
accepted together with noting charges and interest]




6

Bills Payable A/c .....
Dr.


82000



To Bank A/c



81600


To Discount A/c



400


[Being the new bill is
retired]




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Ronaldo owes Ricardo Rs.80,000. Ricardo then draws a bill for Rs. 80,000 on Ronaldo for a period of three months. Ronaldo accepts and return it to Ricardo. Ricardo discounted the bill with his bank @ 10 % p.a. On due date, the bill was dishonoured noting charges amount to Rs. 300. Ricardo then draws a bill for the balance plus interest of Rs. 1700. Before the due date of this bill Ronaldo pays the amount at a discount of Rs. 400 to retire the bill. Journal Entries Ronaldo.
Journal Entries in the Books
of Ronaldo.