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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. - Book Keeping and Accountancy

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.

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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

\[\text{Amount of Interest} = 12, 000 \times\frac{10}{100}\times\frac{3}{12}= Rs 300\]

WN2 Calculation of Amount received from Trupti

\[\text{Amount Received} = 36, 000 \times\frac{40}{100} = Rs14, 400\]

Concept: Accounting Treatment - Discounting the Bill with the Bank Honour/Dishonour and Insolvency
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