Question

Pooja owes Sunil Rs. 50,000. Sunil draws a bill for Rs. 42,000 on Pooja for 3 months' period and received the cheque for the balance. The bill is duly accepted and returned to Sunil. On the Same date, Sunil endorsed Pooja's acceptance to Prema. 

On the due date, Prema informed Sunil that Pooja dishonoured her acceptance and paid Rs. 350 as noting charges. Sunil then drew new bill for one month on Pooja including noting charges and interest Rs. 1,200. On the due date Pooja honoured the bill by cheque.
Prepare: Pass Journal Entries in the books of Sunil and prepare Sunil's account in the books of Pooja.

Answer 1

Journal Entries in the books of Sunil. [Drawer]

Date	Particulars		L.F.	Amount	Amount
1.	Bills Receivable A/c	Dr.		42,000
	Bank A/c	Dr.		8,000
	To Pooja's A/c				50,000
	[Being the bill is drawn and Balance due received by Cheque]
2.	Prema's A/c	Dr.		42,000
	To Bills Receivable A/c				42,000
	[ Being the bill is endorsed]
3.	Pooja's A/c	Dr.		42,350
	To Prema's A/c				42,350
	[ Being the bill is dishonoured and Noting Charges paid.]
4.	Pooja's A/c	Dr.		1,200
	To Interest A/c				1,200
	[ Being the Interest is charged.]
5.	Bills Receivable A/c	Dr.		43,550
	To Pooja's A/c				43,550
	[ Being the bill is drawn along with Noting charges and Interest. ]
6.	Bank A/c	Dr.		43,550
	To Bill Receivable A/c				43,550
	[ Being the bill is duly honoured. ]

In the books of Pooja
Sunil's A/c

Date	Particulars	Amount	Date	Particulars	Amount
				By Balance b/d	50,000
1.	To Bill Payable A/c	42,000	2.	By Bills Payable A/c	42,000
	To Bank A/c	8000		By Noting Charges A/c	350
			3.	By Interest A/c	1,200
4.	To Bill Payable A/c	43,550
		93,550			93,550