Question

Rajesh sold goods on credit to Sulochana for ₹ 25,000. Rajesh draws a bill for ₹ 25,000 on Sulochana for 3 months. Rajesh discounted the bill with his bank @ 10% p.a. on the same day. On the due date of bill, Sulochana requested Rajesh to accept ₹ 5,000 including ₹ 1,000 for interest and to draw a bill for the balance for 3 months. Rajesh agreed to this proposal. One month before the due date, Sulochana retired the bill for ₹ 20,200.

Pass necessary Journal Entries in the books of Rajesh.

Answer 1

In the books of Rajesh Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
1.	Sulochana's A/c   ...Dr.		25,000	-
	To Sales A/c		-	25,000
	(Being goods sold)
2.	Bills Receivable A/c   ...Dr.		25,000	-
	To Sulochana's A/c		-	25,000
	(Being acceptance of bill received)
3.	Bank A/c ... Dr.		24,375	-
	Discount A/c  ...Dr.		625	-
	To Bills Receivable A/c		-	25,000
	(Being bill discounted)
4.	Sulochana's A/c  ...Dr.		25,000	-
	To Bank A/c		-	25,000
	(Being bill discharged)
5.	Sulochana's A/c  ...Dr.		1,000	-
	To interest A/c		-	1,000
	(Being interest Charged)
6.	Cash/Bank A/c  ...Dr.		5,000	-
	To Sulochana's A/c		-	5,000
	(Being Part amount received with interest)
7.	Bills Receivable A/c  ...Dr.		21,000	-
	To Sulochana's A/c		-	21,000
	(Being acceptance of new bill received)
8.	Cash/Bank A/c  ...Dr.		20,200	-
	Discount A/c  ...Dr.		800	-
	To Bills Receivable A/c		-	21,000
	(Being bill retired)
	Total		1,48,000	1,48,000