Question

Journalise the following transactions in the books of Apoorva.

1. Prashant’s acceptance for 60 days ₹ 12,750 deposited into bank for collection.
2. Apoorva sold goods to Kirti for ₹ 20,000 and received her acceptance for the same amount for 2 months. The bill was endorsed to Rekha.
3. Received 30% of the amount due from the private estate of Mukta who was declared insolvent. Mukta had dishonoured her acceptance of ₹ 23,850 and noting charges paid were ₹ 150.
4. Apoorva renews her acceptance of ₹ 36,000 to Anuradha by paying cheque of ₹ 6,000 and accepting a new bill for 2 months for balance along with interest @ 14.5% p. a.

Answer 1

Journal Entries In the Books of Apoorva
Date	Particular	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
(a)	Bill sent for collection A/c   ...Dr.		12,750	-
	To Bills Receivable  A/c		-	12,750
	(Being bill deposited into bank for collection)
b) i)	Kirti’s   ...Dr.		20,000	-
	To Sales A/c		-	20,000
	(Being goods sold on credit)
ii)	Bill Receivable A/c      ...Dr.		20,000	-
	To Kirti’s A/c		-	20,000
	(Being drawn and accepted)
iii)	Rekha’s A/c   ...Dr.		20,000	-
	To Bills Receivable A/c		-	20,000
	(Being Kirti’s acceptance endorsed)
c) i)	Mukta’s A/c   ...Dr.		24,000	-
	To Bills Receivable A/c		-	23,850
	To Cash A/c		-	150
	(Being Mukta’s acceptance dishonoured and Noting Charges paid)
ii)	Cash / Bank A/c     ...Dr.		7,200	-
	Bad Debts A/c      ...Dr.		16,800	-
	To Mukta’s A/c		-	24,000
	(Being amount received and bad debts written of on account of insolvency)
d) i)	Bills Payable A/c     ...Dr.		36,000	-
	To Anuradha’s A/c		-	36,000
	(Being our acceptance dishonoured)
ii)	Interest A/c      ...Dr.		725	-
	To Anuradha’s A/c		-	725
	(Being Interest due)
iii)	Anuradha’s A/c     ...Dr.		6,000	-
	To Cash Bank A/c		-	6,000
	(Being part payment paid)
iv)	Anuradha’s A/c     ...Dr.		30,725	-
	To Bills Payable A/c		-	30,725
	(Being acceptance given to new bill drawn along with interest)