OMTEX CLASSES: March 2018, Q. 4. Bills of Exchange Solution: Click here to get the Solution.

March 2018, Q. 4. Bills of Exchange Solution: Click here to get the Solution.

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. ]