HSC Commerce (Marketing and Salesmanship) 12th Board ExamMaharashtra State Board
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Journalise the Following Transactions in the Books of Kedarnath: 1. Badrinath Informs Kedarnath that Aloknath'S Acceptance of Rs. 16,000 Endorsed to Badrinath Has Been Dishonoured and Noting Charges Amounted to Rs. 500. 2. Somnath Renews His Acceptance of Rs. 14,400 to Kedarnath by Paying Cash Rs. 4,400 and Accepting a New Bill for 2 Months for the Balance Plus Interest @ 12% P.A. 3. Vishwanath Retired His Acceptance for Rs. 10,500 to Kedarnath by Paying in Cash Rs. 10,250 4. Recovered Only 50% of the Amount Due from His Private Estate of Ramnath, Who Declared as Insolvent, Against His Bill of Rs. 12,500 - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Book Keeping and Accountancy

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Question

Journalise the following transactions in the books of Kedarnath:
1. Badrinath informs Kedarnath that Aloknath's Acceptance of Rs. 16,000 endorsed to Badrinath has been dishonoured and noting charges amounted to Rs. 500.

2. Somnath renews his acceptance of Rs. 14,400 to Kedarnath by paying cash Rs. 4,400 and accepting a new bill for 2 months for the balance plus interest @ 12% p.a.

3. Vishwanath retired his acceptance for Rs. 10,500 to Kedarnath by paying in cash Rs. 10,250

4. Recovered only 50% of the amount due from his private estate of Ramnath, who declared as insolvent, against his bill of Rs. 12,500.

Solution

Journal
Date Particulars L.F

Debit

Amount

(Rs)

Credit

Amount

(Rs)

1

 

 

Aloknath                 Dr.

    To Badrinath

(Endorsed bills receivable dishonoured and noting charges incurred)

 

16500

 

 

 

 

16500

 

 

2

 

 

Somnath               Dr.

   To Bills Receivable A/c

(Bills Receivable dishonoured)

 

14400

 

 

 

14400

 

 

Cash A/c             Dr.

   To Somnath

(Cash received from Somnath)

 

4400

 

 

 

4400

 

 

Somnath      Dr.

    To Interest A/c

(Interest due)

 

200

 

 

 

200

 

 

Bills Receivable (new) A/c         Dr.

    To Somnath

(New bills receivable received)

 

10,200

 

 

10,200

3

 

 

 

Cash A/c                   Dr.

Rebate A/c               Dr.

   To Bills Receivable A/c

(Amount of bill received under rebate from Vishwanath)

 

10250

250

 

 

 

 

10500

 

4

 

 

 

Cash A/c               Dr.

Bad Debts A/c       Dr.

    To Ramnath

(Ramnath became insolvent, 50% amount was received from his estates)

 

6250

6250

 

 

 

 

12500

 

Working Notes:

1. Calculation of Interest due

Amount of Interest = 10,000 × 12/100 × 2/12 = Rs 200

2. Calculation of Final Compensation from Ramnath

Amount received from Ramnath = 12,500 × 50/100 = Rs 6,250

  Is there an error in this question or solution?

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 2013-2014 (March) (with solutions)
Question 4 | 10.00 marks
Solution Journalise the Following Transactions in the Books of Kedarnath: 1. Badrinath Informs Kedarnath that Aloknath'S Acceptance of Rs. 16,000 Endorsed to Badrinath Has Been Dishonoured and Noting Charges Amounted to Rs. 500. 2. Somnath Renews His Acceptance of Rs. 14,400 to Kedarnath by Paying Cash Rs. 4,400 and Accepting a New Bill for 2 Months for the Balance Plus Interest @ 12% P.A. 3. Vishwanath Retired His Acceptance for Rs. 10,500 to Kedarnath by Paying in Cash Rs. 10,250 4. Recovered Only 50% of the Amount Due from His Private Estate of Ramnath, Who Declared as Insolvent, Against His Bill of Rs. 12,500 Concept: Accounting Treatment - Retaining the Bill Till Due Date. Honour Or Dishonour, Insolvency of the Drawee Or Acceptor.
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