Maharashtra State BoardHSC Commerce 12th Board Exam
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Pass Journal Entries in the Books of Magan Mahajan and Also Prepare Prakash Patil’S and Magan Mahajan Ledger Account in the Books of Chandu Chaudhari. - Book Keeping and Accountancy

Journal Entry
Ledger

On 5th September, 2010 Prakash Patil accepted a bill of Rs 16,000 drawn by Chandu Chaudhari for 3 months. This bill was drawn for amount which Prakash Patil owed to Chandu Chaudhari. On same date Chandu Chaudhari purchased goods from Magan Mahajan for Rs 20,000 for this Chandu Chaudhari endorsed Prakash Patil’s acceptance in favour of Magan Mahajan and accepted 2 months bill for the balance due. On 5th October, 2010 Magan Mahajan discounted both the bill with his bank @ 12% p.a.

 On the due date Prakash Patil’s honoured his acceptance while Chandu Chaudhari unable to meet the payment for his acceptance. Magan Mahajan’s bank paid noting charges Rs 100.
 
Pass Journal entries in the books of Magan Mahajan and also prepare Prakash Patil’s and Magan Mahajan ledger account in the books of Chandu Chaudhari.

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Solution

                              Books Of Magan Mahajan
                                         Journal Entry

Date Particulars L.F. Debit Amount Rs. Credit Amount Rs.
2010
Sept.05
Chandu Chaudhari          Dr.
   To Sales A/c
(Goods Sold to Chandu Chaudhari)
  20,000 20,000
Sept.05 Bill Receivable A/c          Dr.
Bills Receivable A/c         Dr.
   To Chandu Chaudhari 
(Bill drawn and accepted)
  16,000
4,000
20,000
Oct.05 Bank A/c                        Dr.
Discount A/c                  Dr.
    To Bills Receivable A/c
(Bill discounted with the bank @ 12% per annum before 2 months)
  15,680
320
16,000
Oct.05 Bank A/c                     Dr.
Discount A/c               Dr.
     To Bill Receivable A/c
  3,960
40
4,000
Nov.08 Chandu Chaudhari A/c  Dr.
    To Bank A/c
(Discounted bill dishonoured on maturity date, noting charges of Rs.100 Paid)
  4,100 4,100

In the books Of Chandu Chaudhari
                                    Prakash Patil's Account 
Dr.                                                                                                    Cr.

Date Particulars J.F. Amount 
(Rs.)
Date Particulars J.F. Amount
(Rs.)
2011
Sept.05
Balance b/d   16,000 2011
Sept.05
Bills Receivable A/c   16,000
      16,000       16,000

                                   Magan Mahajan's Account
Dr.                                                                                                    Cr.

Date Particulars J.F. Amount (Rs.) Date Particulars J.F. Amount(Rs.)
20111
Sept.05
Bills Receivable A/c   16,000 2011
Sept.05
Purchases A/c   20,000
Sept.05 Bills Payable A/c   4,000 Nov.08 Bills Payable A/c   4,100
Nov.08 Balance c/d   4,100        
      24,100       24,100




Concept: Accounting Treatment of Bill - Journal Entries and Ledger
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 9 Bill of Exchange (Trade Bill)
Exercise | Q 7 | Page 318
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