Date
|
Particulars
|
LF
|
Debit
(RS)
|
Credit
(Rs)
|
?
1
|
Rose's
A/c
|
|
2000
|
|
|
To
Sales A/c
|
|
|
2000
|
|
[Being
the goods are sold]
|
|
|
|
2
|
Bank
A/c ..... Dr.
|
|
1000
|
|
|
To
Rose's A/c
|
|
|
1000
|
|
[Being
the part payment is made]
|
|
|
|
3
|
Bills
Receivable A/c .....
Dr.
|
|
1000
|
|
|
To
Rose's A/c
|
|
|
1000
|
|
[Being
the bill is drawn by balance amount]
|
|
|
|
4
|
Bank
A/c ..... Dr.
|
|
960
|
|
|
Discount
A/c ..... Dr.
|
|
40
|
|
|
To
Bills receivable A/c
|
|
|
1000
|
|
[Being
the bill is discounted]
|
|
|
|
5
|
Rose's
A/c ..... Dr.
|
|
1000
|
|
|
to
Bank A/c
|
|
|
1000
|
|
[Being
the discounted bill is dishonoured]
|
|
|
|
6
|
Rose's
A/c ..... Dr.
|
|
12
|
|
|
To
Interest A/c
|
|
|
12
|
|
[Being
the interest is charged]
|
|
|
|
7
|
Bank
A/c …..... Dr.
|
|
612
|
|
|
To
Rose's A/c
|
|
|
612
|
|
[Being
the part payment is made along with Interest]
|
|
|
|
8
|
Bills
Receivable A/c .....
Dr.
|
|
400
|
|
|
To
Rose's A/c
|
|
|
400
|
|
[Being
the new bill is drawn]
|
|
|
|
9
|
Bank
A/c ..... Dr.
|
|
400
|
|
|
To
Bills Receivable A/c
|
|
|
400
|
|
[Being
the new bill is duly honoured]
|
|
|
|
Advertisement
Rose purchased goods from Lilly on credit for Rs. 2,000. On next day Rose paid Rs. 1,000 to Lilly and accepted a bill drawn by Lilly for the balance amount for four months. Lilly discounted the bill with her bank for Rs. 960/-. Before the due date Rose approached Lilly with a request to renew the Bill. Lilly agreed with the condition that Rose should pay Rs. 600 along with interest of Rs. 12 and accept a new bill for the balance. These arrangements were duly carried out. New bill is met on the due date. Pass journal entries books of Lilly.
Journal
Entries in the books of Lilly.