Journalise the following transactions in the books of Jwala:
(a) Abdul informed Jwala that John's acceptance endorsed to Abdul for Rs 16,000 has been dishonoured and noting charges amounted to Rs 200.
(b) Sony renews her acceptance to Jwala for Rs 24,000 by paying half the amount of the bill in cash together with interest @10% p.a. on balance due and accepting a fresh bill for 3 months.
(c) Trupti who had given an acceptance to Jwala for Rs 36,000 was declared insolvent and could pay only 40% of the amount due.
(d) Raja's acceptance to Jwala for Rs 6,000 was endorsed to Rani in full settlement of her account for Rs 6,300.
Solution
In the books of Jwala
JOURNAL
Date 
Particulars 
L.F. 
Debit Amount (Rs) 
Credit Amount (Rs) 

(a) 
John 
Dr. 

16,200 


To Abdul 



16,200 

(Endorsed bills dishonored and noting charges amounted to Rs 200) 










(b) 
Sony 
Dr. 

24,000 


To Bills Receivable A/c 



24,000 

(Bills cancelled) 











Sony 
Dr. 

300 


To Interest A/c 



300 

(Interest Due for 10% p.a. for 3 months) 











Cash A/c 
Dr. 

12,300 


To Sony 



12,300 

(Cash Received) 











Bills Receivable A/c 
Dr. 

12,000 


To Sony 



12,000 

(New Bill drawn and acceptance received) 










(c) 
Trupti 
Dr. 

36,000 


To Bills Receivable A/c 



36,000 

(Bills dishonored) 











Cash A/c 
Dr. 

14,400 


Bad Debts A/c 
Dr. 

21,600 


To Trupti 



36,000 

(Final compensation received from Trupti) 










(d) 
Rani 
Dr. 

6,300 


To Bills Receivable A/c To Discount Received A/c 



6,000 




300 


(Bills endorsed in full settlement of account of Rani Rs 6,300) 




WN1 Calculation of Amount of Interest received from Sony
\[\text{Amount of Interest} = 12, 000 \times\frac{10}{100}\times\frac{3}{12}= Rs 300\]
\[\text{Amount Received} = 36, 000 \times\frac{40}{100} = Rs14, 400\]