Question

Journalise the following transactions in the books of Jwala:

(a) Abdul informed Jwala that John's acceptance endorsed to Abdul for Rs 16,000 has been dishonoured and noting charges amounted to Rs 200.

(b) Sony renews her acceptance to Jwala for Rs 24,000 by paying half the amount of the bill in cash together with interest @10% p.a. on balance due and accepting a fresh bill for 3 months.

(c) Trupti who had given an acceptance to Jwala for Rs 36,000 was declared insolvent and could pay only 40% of the amount due.

(d) Raja's acceptance to Jwala for Rs 6,000 was endorsed to Rani in full settlement of her account for Rs 6,300.

Answer 1

In the books of Jwala

JOURNAL

Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(a)	John	Dr.		16,200
	To Abdul				16,200
	(Endorsed bills dishonored and noting charges amounted to Rs 200)
(b)	Sony	Dr.		24,000
	To Bills Receivable A/c				24,000
	(Bills cancelled)
	Sony	Dr.		300
	To Interest A/c				300
	(Interest Due for 10% p.a. for 3 months)
	Cash A/c	Dr.		12,300
	To Sony				12,300
	(Cash Received)
	Bills Receivable A/c	Dr.		12,000
	To Sony				12,000
	(New Bill drawn and acceptance received)
(c)	Trupti	Dr.		36,000
	To Bills Receivable A/c				36,000
	(Bills dishonored)
	Cash A/c	Dr.		14,400
	Bad Debts A/c	Dr.		21,600
	To Trupti				36,000
	(Final compensation received from Trupti)
(d)	Rani	Dr.		6,300
	To Bills Receivable A/c To Discount Received A/c				6,000
					300
	(Bills endorsed in full settlement of account of Rani Rs 6,300)

WN1 Calculation of Amount of Interest received from Sony

\[\text{Amount of Interest} = 12, 000 \times\frac{10}{100}\times\frac{3}{12}= Rs 300\]

WN2 Calculation of Amount received from Trupti

\[\text{Amount Received} = 36, 000 \times\frac{40}{100} = Rs14, 400\]