Question

Ms. Smita purchases goods from Mr. Ramesh on 1^st April, 2010 for Rs 36,000. Smita accepts a bill for 2 months drawn by Ramesh for the same amount on the same day.

Ramesh discounts the bill with the Bank for Rs 35,100 on 2^nd April, 2010. On due date the bill is dishonoured, noting charges are Rs 60.
Smita pays Rs 18,000 in cash with noting charges.

A fresh bill drawn by Ramesh is accepted by her for the balance including interest Rs 450 for two months.

The new bill is retired one month before the due date at the rebate of Rs 250. Pass Journal entries in the books of Ms. Smita

 

Answer 1

In the books of Smita Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2010
Apr. 01	Purchases A/c	Dr.		36,000
	To Ramesh				36,000
	(Goods purchased from Ramesh on credit)
Apr. 01	Ramesh	Dr.		36,000
	To Bills Payable A/c				36,000
	(Accepted bills payable from Ramesh)
June 04	Bills Payable A/c	Dr.		36,000
	Noting Charges A/c	Dr.		60
	To Ramesh				36,060
	(Bill was dishonoured and noting charges to be paid)
June 04	Ramesh	Dr.		18,060
	To Bank A/c				18,060
	(Paid cash to Ramesh along with noting charges)
June 04	Interest A/c	Dr.		450
	To Bank A/c				450
	(Interest due)
June 04	Ramesh	Dr.		18,450
	To Bills Payable A/c				18,450
	(New Bill was accepted)
July 04	Bills Payable A/c	Dr.		18,450
	To Cash A/c				18,200
	To Rebate A/c				250
	(Bill was honoured one month before the due date)