Maharashtra State BoardHSC Commerce 12th Board Exam
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Journalise the Following Transactions in the Books of 'Avadhoot'.(A) Nandini Informs Avadhoot that Nisha'S Acceptance for Rs. 5,000 Endorsed to Nandini Has Been Dishonoured - Book Keeping and Accountancy

Journalise the following transactions in the books of 'Avadhoot'.

(a) Nandini informs Avadhoot that Nisha's acceptance for Rs. 5,000 endorsed to Nandini has been dishonoured. Noting charges amounted to Rs. 100.

(b) Dhanashri renews her acceptance to Avadhoot for Rs. 2,400 by paying Rs. 1,200 in cash and accepting a new bill for the balance plus interest at 12% p.a. for 3 months.

(c) Honagekar's acceptance to Avadhoot Rs. 6,000 retired one month before its due date at a discount of 20% p.a.

(d) Bank informs to Avadhoot that the dishonour of Shashikala's acceptance for Rs. 4,000 discounted with the bank. Noting charges amounted to Rs. 70.

(e) Avadhoot sent a bill of Pravin for Rs. 6,000 to the bank for collection. 

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Solution

In the books of Avadhoot

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Nisha

Dr.

 

5,100

 

 

To Nandini

 

 

 

5,100

 

(Nisha’s acceptance endorsed to Nandini  dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

(b)

Dhanashri

Dr.

 

2,400

 

 

 To Bills Receivable A/c

 

 

 

2,400

 

(Old bill cancelled)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,200

 

 

To Dhanashri

 

 

 

1,200

 

(Cash Received)

 

 

 

 

 

 

 

 

 

 

 

Dhanashri (WN1)

Dr.

 

36

 

 

To Interest A/c

 

 

 

36

 

(Interest due)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,236

 

 

To Dhanashri

 

 

 

1,236

 

(New acceptance received)

 

 

 

 

 

 

 

 

 

 

(c)

Cash A/c (WN2)

Dr.

 

5,900

 

 

Rebate A/c

Dr.

 

100

 

 

To Bills Receivable A/c

 

 

 

6,000

 

(Cash received and discount allowed)

 

 

 

 

 

 

 

 

 

 

(d)

Shashikala

Dr.

 

4,070

 

 

To Bank A/c

 

 

 

4,070

 

(Bill discounted with bank dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

(e)

Bills Sent for Collection A/c

Dr.

 

6,000

 

 

To Bills Receivable A/c

 

 

 

6,000

 

(Bill sent to bank for collection)

 

 

 

 

Working Notes:  

WN1 Calculation of Interest

\[\text{Amount of Interest} = 1, 200 \times \frac{12}{100} \times \frac{3}{12} = Rs36\]

WN2 Calculation of Rebate

\[\text{Amount of Rebate} = 6, 000 \times \frac{20}{100} \times \frac{1}{12} = Rs100\]

Concept: Bill of Exchange Examples and Solutions
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