(A) Arvind renews his acceptance of Jaydeep of Rs. 7,000 with interest Rs. 500 for two months.
(B) Bank informed Jaydeep that Mahadev’s acceptance of Rs. 4,000 which was discounted and
dishonoured. Bank charged noting charges Rs. 80.
(C) Hanumant informed Jaydeep that Kazi’s acceptance for Rs. 7,000 endorsed to Hanumant has been dishonoured, noting charges Rs. 85.
(D) Datta honoured his acceptance of Rs. 4,900, which was sent to bank for collection. Bank debited Rs. 100 for bank charges.
(E) Radhika retired her acceptance to Jaydeep of Rs. 9,000 by paying Rs. 8,700.
Answer: Journal Entries in the books of Jaydeep.
Date

Particulars

L.F.

Amount
Rs.

Amount
Rs.

1.

Arvind’s A/c ...... Dr.

7000
 
To Bills Receivable A/c

7000
 
[Being the bill is dishonoured]
 
2.

Arvind’s A/c ...... Dr.

500
 
To Interest A/c

500
 
[Being the interest is charged]
 
3.

Bills Receivable A/c .... Dr.

7500
 
To Arvind’s A/c

7500
 
[Being the new bill is drawn along with interest]
 
4.

Mahadev’s A/c .... Dr.

4080
 
To Bank A/c

4080
 
[Being the bill is dishonoured along with noting charges]
 
5.

Kazi's A/c .....Dr.

7085
 
To Hanumant's A/c

7085
 
[Being the endorsed bill is dishonoured along with noting charges]
 
6.

Bank A/c ..... Dr.

4800
 
Bank Charges A/c ...... Dr.

100
 
To Bank for collection A/c

4900
 
[Being the bill sent to bank for collection has honoured]
 
7.

Bank A/c ........ Dr.

8700
 
Rebate A/c ...... Dr.

300
 
To Bills Receivable A/c

9000
 
[Being the bill is retired]

Can someone explain the 6th entry how it came
ReplyDeleteThis comment has been removed by the author.
Delete6th entry is when the bank gets the money that the drawee pays for the bill .However the bank charges for doing that job. So cash comes ,bank charges is expense for drawer hence debited and bill is going out hence it's credited. Hope it's useful
ReplyDeletehttps://www.omtex.co.in/2019/07/question16practicalproblems.html?m=1
ReplyDeleteSir 6th entry or upar wali site me alag q entry h
Mujhe 7th vali entry samjhayenge
ReplyDeleteRadhika paid her bill before due date. And her bill amount was of 9000 but she paid 8700 because she paid before due date she got rebate of 300
DeleteToh cash a/c...... 8700
DeleteRebate a/c..... 300
To Br a/c 9000
Hona chaiye na
Mujhe 1th Vali entry samjhayenge
ReplyDeleteWhen we have to renew the bill then first we cancel/dishonour it .that's why Arvind's A/c dr.
DeleteTo bills receivable A/c cr.