Q. 4. Bills of Exchange Solution: Click here to get the Solution.
Journal Entries in the books of Sayali.
Date

Particulars

L.F.

Debit (Rs.)

Credit (Rs.)

(1)

Manali’s A/c ....... Dr.

40000
 
To Sales A/c

40000
 
[Being the goods are sole]
 
(2)

Bills Receivable A/c .... Dr.

40000
 
To Manali’s A/c

40000
 
[Being the bill is drawn ]
 
(3)

Bank A/c .... Dr.

38800
 
Discount A/c ..... Dr

1200
 
To Bills Receivable A/c

40000
 
[Being the bill is discounted]
 
(4)

Manali’s A/c .... Dr.

40300
 
To Bank A/c

40300
 
[Being the bill is dishonoured and noting charges charged]
 
(5)

Manali’s A/c .... Dr.

750
 
To Interest A/c

750
 
[Being the interest is charged]
 
(6)

Cash A/c ..... Dr.

20300
 
To Manali’s A/c

20300
 
[Being the part payment is made along with Noting charges]
 
(7)

Bills Receivable A/c .... Dr.

20750
 
To Manali’s A/c

20750
 
[Being the new bill is drawn along with interest]
 
(8)

Manali’s A/c .... Dr.

20750
 
To Bills Receivable A/c

20750
 
[Being the bill is dishonoured]
 
(9)

Cash A/c ... Dr.

8300
 
Bad debts A/c .... Dr.

12450
 
To Manali’s A/c

20750
 
[Being the drawee become insolvent and only 40 % of the amount could be recovered from her private estate. ]
