Date
|
Particulars
|
LF
|
Debit
(Rs)
|
Credit
(Rs)
|
? 1
|
Nanda's A/c ....Dr.
|
|
6000
|
|
|
To Bills Payable A/c
|
|
|
6000
|
|
[Being the bill is accepted]
|
|
|
|
2
|
Bills Payable A/c ....Dr.
|
|
6000
|
|
|
To Nanda's A/c
|
|
|
6000
|
|
[Being the bill is dishonoured]
|
|
|
|
3
|
Interest A/c ....Dr.
|
|
180
|
|
|
To Nanda's A/c
|
|
|
180
|
|
[Being the Interest is charged]
|
|
|
|
4
|
Nanda's A/c ....Dr.
|
|
3180
|
|
|
To Bank A/c
|
|
|
3180
|
|
[Being the part payment is charged along with interest]
|
|
|
|
5
|
Nanda's A/c ....Dr.
|
|
3000
|
|
|
To Bills Payable A/c
|
|
|
3000
|
|
[Being the new bill is accepted]
|
|
|
|
6
|
Bills Payable A/c ....Dr.
|
|
3000
|
|
|
To Nanda's A/c
|
|
|
3000
|
|
[Being the new bill is dishonoured]
|
|
|
|
7
|
Nanda's A/c ....Dr.
|
|
3000
|
|
|
To Bank A/c
|
|
|
750
|
|
To Deficiency A/c
|
|
|
2250
|
|
[Being the drawee become insolvent and only 40 % of the amount could be
received from our estate]
|
|
|
|
Advertisement
Chanda accepted a bill for Rs. 6,000 drawn by Nanda at three months. Nanda got the bill discounted with his bank for Rs. 5,700. Before the due date, Chanda approached Nanda for renewal of the Bill. Nanda agreed on the condition that Rs. 3,000 is paid immediately together with an interest on remaining amount at 18% p.a. for four months and for the balance Chanda should accept a new bill. But afterwards Chanda become insolvent and only 25% of the amount could be recovered from her estate. Pass journal entries in the books of Chanda.
Journal Entries In the Books of Chanda.