Date
|
Particulars
|
LF
|
Debit
(Rs)
|
Credit
(Rs)
|
1.5.13
|
Prakash's A/c ....Dr.
|
|
4000
|
|
|
To Bills Payable A/c
|
|
|
4000
|
|
[Being the bill is accepted]
|
|
|
|
1.8.13
|
Bills Payable A/c ....Dr.
|
|
4000
|
|
|
To Prakash's A/c
|
|
|
4000
|
|
[Being the bill is dishonoured]
|
|
|
|
1.8.13
|
Interest A/c ....Dr.
|
|
45
|
|
|
To Prakash's A/c
|
|
|
45
|
|
[Being the Interest is charged]
|
|
|
|
1.8.13
|
Prakash's A/c
|
|
1000
|
|
|
To Bank A/c
|
|
|
1000
|
|
[Being the part – payment is made]
|
|
|
|
1.8.13
|
Prakash's A/c ....Dr.
|
|
3045
|
|
|
To Bills Payable A/c
|
|
|
3045
|
|
[Being the new bill is accepted]
|
|
|
|
1.10.13
|
Bills Payable A/c ....Dr.
|
|
3045
|
|
|
To Bank A/c
|
|
|
3035
|
|
To Discount A/c
|
|
|
10
|
|
[Being the new bill is retired]
|
|
|
|
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Prakash drew a bill for Rs. 4,000 on Anand on 1st May, 2013 for three months. This was for the amount which Anand owed to Prakash. Anand accepts the same and return it to Prakash who discounted at his bank for Rs. 3,900. On 1st Aug, 2013 Anand requested Prakash to renew the bill and Prakash agreed on the condition that Rs. 1,000 is paid immediately and Anand should accept the new bill for 3 months for the balance payable plus interest of Rs. 45. These arrangements were carried through. However, on 1st October, 2013, Anand retired his acceptance for Rs. 3, 035. Pass journal entries in the books of Anand.
Journal Entries in the Books of
Anand