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