Question

Journalise the following bill transactions as on 21^st May, 2010 in the books of Prabodhan.
A. Renewed Veerendra’s acceptance of Rs 17,500 due on 21^st May 2010 with interest Rs 500 for 2 months.

B. Bank informed that Radhabai’s acceptance of Rs 1,400 which was discounted dishonoured, bank paid noting charges Rs 185.

C. Sent acceptance of Rs 12,000 at 120 days after sight, drawn by Mudhukar for the amount due to him.

D. Pandharinath honoured his acceptance of Rs 8,500 which was deposited into bank for collection.

Answer 1

                                          Books of Prabodhan
                                               Journal Entry

Date	Particulars	L.F.	Debit Amount (Rs.)	Credit Amount (Rs.)
2010 May 21     A.	Veerendra                          Dr.     To Bills receivable A/c (Verendra’s acceptance cancelled for renewal)		17,500	17,500
May 21	Veerendra                          Dr.     To Interest A/c (Interest charged on his account)		500	500
May 21	Bills Receivable A/c           Dr.    To Veerendra A/c  (New bill has been drawn and accepted)		18,000	18,000
May 21     B.	Radhabai A/c                     Dr.   To Bank A/c ( Bill discounted with Bank dishonoured and noting charges of Rs. 185 has been paid)		1,585	1,585
May 21     C.	Mudhukar A/c                   Dr   To Bills Payable A/c (Bill accepted)		12,000	12,000
May 21     D.	Bank A/c                          Dr.     To Bill Sent for Collection (Bill honoured which was sent to bank for collection)		8,500	8,500