Q. 4. Bills of Exchange Solution: Click here to get the Solution. [ For Solution Click Here ]
Journal Entries in the books of Ram.
Date
|
Particulars
|
L.F.
|
Debit (Rs.)
|
Credit (Rs.)
|
7.3.16
|
Bills Receivable A/c .... Dr.
|
8000
| ||
To Rohit's A/c
|
8000
| |||
[Being the bill is drawn ]
| ||||
7.3.16
|
Bank for Collection A/c ... Dr.
|
8000
| ||
To Bills Receivable A/c
|
8000
| |||
[Being the Bill is sent to Bank for Collection]
| ||||
10.6.16
|
Rohit's A/c ... Dr.
|
8000
| ||
To Bank for Collection A/c
|
8000
| |||
[Being the sent to Bank for collection bill is dishonoured]
| ||||
10.6.16
|
Rohit's A/c ... Dr.
|
200
| ||
To Interest A/c
|
200
| |||
[Being the interest is charged on balance Amount]
| ||||
10.6.16
|
Cash A/c ..... Dr.
|
5000
| ||
To Rohit's A/c
|
5000
| |||
[Being the part payment made in cash]
| ||||
10.6.16
|
Bills Receivable A/c ... Dr.
|
3200
| ||
To Rohit's A/c
|
3200
| |||
[Being the new bill is drawn along with interest]
| ||||
13.8.16
|
Rohit's A/c ... Dr.
|
3200
| ||
To Bills Receivable A/c
|
3200
| |||
[Being the drawee became insolvent and hence the bill is automatically dishonoured]
| ||||
13.8.16
|
Cash A/c ... Dr.
|
1500
| ||
Bad debts A/c ... Dr.
|
1700
| |||
To Rohit's A/c
|
3200
| |||
[Being the drawee became insolvent and only part of the amount could be recovered from his private estate]
| ||||
