Date

Particulars

L.F.
No.

Debit

Credit

14.5.12

Devidas’s A/c ……… Dr.


30000



To Sales A/c



30000


[Being goods sold on credit]




14.5.12

Bills Receivable A/c ……… Dr.


30000



To Devidas’s A/c



30000


[Being the Bill is drawn]




17.6.12

Bank A/c ……… Dr.


29250



Discount A/c ……… Dr.


750



To Bills Receivable A/c



30000


[Being the bill is discounted]




17.9.12

Devidas’s A/c ……… Dr.


30000



To Bank A/c



30000


[Being the discounted bill is
dishonoured]




17.9.12

Devidas’s A/c ……… Dr.


500



To Interest A.c



500


[Being the Interest is charged
on balance amount]




17.9.12

Cash A/c ……… Dr.


10500



To Devidas’s A/c



10500


[Being Part payment along with
interest received ]




17.9.13

Bills Receivable A/c ………Dr.


20000



To Devidas’s A/c



20000


[Being the new bill is drawn
for the balance amount]




Advertisement
On 14th May, 2012 Rohit sold goods on credit to Devidas for Rs. 30,000 on the same date Rohit draws a bill on Devidas for Rs. 30,000 at 4 months. Devidas accepted it an returned to Rohit.
On 17^{th} June, 2012
rohit discounted the bill with his bank @ 10% p.a.
On due date Devidas finds himself
unable to make payment of the bill and requests Rphit to renew it.
Rohit accepted the proposal on
the condition that Devidas should pay Rs. 10,000 on account along with interest
Rs. 500 in cash and should accept a new bill for the balance at 2 months.
These arrangements were carried
though.
Give Journal Entries in the Books
of Rohit.
Solution:
Journal Entries in the Books of
Rohit.
Working Notes:
(1) Discount charged by the bank
= Amount of Bill × Period × Rate of Discount
∴ Discount Charged by the Bank =
30000 × (3/12) × (10/100) = Rs. 750
[Note: Period of the bill is for
4 months but it is discounted one month after, therefore the period of the bill
is to be considered for 3 months only.]
(2) Amount of New Bill = Amount
of Dishonoured bill + Interest on balance Amount – Part Payment.
∴ Amount of New Bill = 30000 + 500
– 10500 = Rs. 20,000.