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