Date

Particulars

L.F.

Debit
(Rs.)

Credit
(Rs.)

1.3.13

Namdev A/c ... Dr.

30000


To Sales A/c

30000


[Being Goods are sold on credit]


1.3.13

Bills Receivable A/c ... Dr.

30000


To Namdev A/c

30000


[Being the bill is drawn]


21.5.13

Namdev A/c ... Dr.

30000


To Bills Receivable A/c

30000


[Being the bill is dishonoured]


21.5.13

Namdev A/c ... Dr.

400


To Interest A/c

400


[Being the Interst is charged on Balance Amount]


21.5.13

Cash/Bank A/c ... Dr.

10000


To Namdev A/c

10000


[Being the part payment is made]


21.5.13

Bills Receivable A/c ... Dr.

20400


To Namdev A/c

20400


[Being the new bill is drawn along the interest]


24.7.13

Cash / Bank A/c ... Dr.

20400


To Bills Receivable A/c

20400


[Being the new bill is duly honoured]

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Journal Entry
Sukhdev sold goods to Namdev worth ₹ 30000 on 1st March 2013. Namdev accepted a bill for three months , drawn by Sukhdev on 1st March 2013.
Namdev requested on 21st May 2013 to Sukhdev to receive ₹ 10000 and to draw a new bill for the balance for two months. Sukhdev agreed on condition that interest at 12 5 p.a. for two months is to be provided.
Sukhdev then drew a new bill for balance amount plus interest at 12 % p.a. for two months .
Namdev accepted the new bill. On due date the new bill was honoured.
Give journal entries in the books of Sukhdev.
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Solution
Journal Entries in the Books of Sukhdev. [Drawer]
Concept: Introduction of Bill of Exchange (Only Trade Bill)
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