Question

Journalise the following bill transactions as on 31^st July, 2011 in the books of Pratapsing.
A. Renewed Vinyak’s acceptance of Rs 6,000 due on 31^st July, 2011 by accepting cash Rs 2,000 and drawing bill for the balance with interest @ 18% p.a. for 3 months.

B. Accepted a bill of Rs 5,000 at 3 months at sight, drawn by Arvind for the amount due to him Rs 6,000 and balance paid by cheque.

C. Jethabhai honoured his acceptance of Rs 9,800 which was deposited into bank for collection and bank debited Rs 80 for bank charges.

D. Bank informed that Prajakta’s acceptance of Rs 4,000 which was discounted dishonoured, bank paid noting charge Rs 85. Renewed at her request for next 2 months with interest @ 18% p.a.

 

Answer 1

                                            Books of Pratapsing
                                                 Journal Entry

Date	Particulars	L.F.	Debit Amount (Rs.)	Credit Amount (Rs.)
2011 Jul.31   A.	Vinyak                                   Dr.    To Bills Receivable A/c (Bill cancelled for renewal of acceptance)		6,000	6,000
	Vinyak                               Dr.    To Interest A/c (Interest charged on his account for Rs. 4,000 @ 18% per annum for 3 months)		180	180
	Cash A/c                           Dr. Bills Receivable A/c          Dr.       To Vinyak (Cash received and new bill has been drawn and accepted)		2,000 4,180	6,180
Jul.31    B.	Arvind                                 Dr.    To Bank A/c     To Bills Receivable A/c (Bill of Rs 5,000 accepted and rest of the amount paid by cheque)		6,000	1,000 5,000
Jul.31    C.	Bank A/c                             Dr.    To Bill sent for Collection (Bill sent for collection, honoured on due date)		9,800	9,800
	Bank Charges A/c               Dr.     To Bank A/c (Bank Charges paid)		80	80
Jul.31   D.	Prajakta                              Dr.   To Bank A/c      (Bill discounted with Bank, dishonoured and noting charges of Rs 85 paid)		4,085	4,085
	Parjakta A/c                        Dr.     To Interest A/c (Interest charges due on Rs 4,085 @ 18% per annum for 2 months)		123	123
	Bills Receivable A/c               Dr     To Prajkta A/c  (New Bill has been drawn and accepted)		4,208	4,208