23. Journalise the following transactions in the books of Ashwin. (a) Bank informed that Sachin's acceptance for Rs. 5,750 sent to bank for collection had been honoured and bank charges debited were Rs. 50.



23. Journalise the following transactions in the books of Ashwin.

(a) Bank informed that Sachin's acceptance for Rs. 5,750 sent to bank for collection had been honoured and bank charges debited were Rs. 50.

(b) Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new bill for the balance plus interest @ 8% p.a. for 3 months.

(c) Discharged our acceptance to Pravin for Rs. 4,250 by endorsing Bhavin's acceptance to us for Rs. 4,000.

(d) Jatin who had accepted Ashwin's bill of Rs. 8,500 was declared insolvent and only 40% of the amount due could be recovered from his estate. 

Sr. No.
Particulars
JF
DEBIT
CREDIT
(a)
Bank A/c … Dr. 

5700


Bank Charges A/c … Dr. 

50


To Bills Sent for Collection A./c 


5750

[being the bill is sent to bank for collection bill is honoured and bank charged debited]



(b)
Nitin’s A/c …. Dr. 

7200


To Bills Receivable A/c 


7200

[Being the bill is dishonoured]









Nitin’s A/c …. Dr. 

100


To Interest A/c 


100

[Being the interest is charged on balance amount]









Cash A/c … Dr. 

2200


To Nitin’s A/c 


2200

[Being the Part payment is made in Cash]









Bills Receivable A/c … Dr. 

5100


To Nitin’s A/c 


5100

[Being the new bill is drawn along with interest]








(c)
Bills Payable A/c … Dr. 

4250


To Bills Receivable A/c 


4000

To Discount A/c 


250

[Bills receivable endorsed in payment of acceptance at a discount]








(D)
Jatin’s A/c …. Dr. 

8500


To Bills Receivable A/c 


8500

[Being the bill is dishonoured]









Cash A/c … Dr. 

3400


Bad debts A/c …. Dr. 

5100


To Jatin’s A/c 


8500

[Being the drawee become insolvent and only 40% of the amount could be recovered from his private property] 




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