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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)

1

09 Bill of Exchange (trade bill)

Type A: Proforma Solution to Practice Q.1.: Solution to Practice Q.2.:

STAMP Saumil Kapadia, Sector 5, Navi Mumbai 17th Feb, 2013

Two months after date pay to me or my order the sum of Rupees Nineteen

Sd/- Saumil Kapadia

ACCEPTED

18th Feb, 2013

Thousand Seven Hundred and Eighty only for the value received.

To, Sujit Mehra, Shivaji Nagar, Pune

` 19,780/-

Bill of Exchange

Sd/- Sujit Mehra

STAMP Sairaj Gandhi, S. V. Road, Bandra 5th Dec, 2012

Four months after date pay to me or my order the sum of Rupees Ten

Sd/- Sairaj Gandhi

ACCEPTED

7th Dec, 2012

Thousand only for the value received.

Sd/- Harrison Paul

To, Harrison Paul, MIDC Thane

` 10,000/-

Bill of Exchange

Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy

2

Solution to Practice Q.3.: Solution to Practice Q.4.:

STAMP Mr. Avadhoot Raktade 586, Main Road, Ajara. 1st May, 2010

To, Mr. Mukund Aglawe 133, Chandni Chowk, Panvel.

Sd/- Mr. Avadhoot Raktade

Two months after date pay to me or my order the sum of Rupees Eight

ACCEPTED

` 8,800/-

Bill of Exchange

Sd/- Mr. Mukund Aglawe

5th May, 2010

Thousand and Eight Hundred only for the value received.

STAMP Shri. Suraj Patil Bazarpeth, Sawantwadi. 1st Jan, 2011

To, Anita Desai M.G. Road, Pune.

Sd/- Shri. Suraj Patil

Four months after date pay to me or my order the sum of Rupees Nineteen

ACCEPTED

` 19,500/-

Bill of Exchange

Sd/- Anita Desai 4th Jan, 2011

Thousand and Five Hundred only for the value received.


3


STAMP Ms. Suman Raje Kolhapur 1st Jan, 2013

Three months after date pay to Ms. Krupa Mehta, Thane or her’s order

Sd/- Ms. Suman Raje ACCEPTED

5th Jan, 2013

the sum of Rupees Twelve Thousand only for the value received.

Sd/- Mrs. Rajshree Masrani

To, Mrs. Rajshree Masrani Ahmednagar.

` 12,000/-

Bill of Exchange

STAMP Harshil Sajnani Lokhandwala, Kandivali 18th Mar, 2013

Two months after date pay to Anagha Shashtri, Sector 12, Navi Mumbai

Sd/- Harshil Sajnani ACCEPTED

15th Mar, 2013

or her’s order the sum of Rupees Thirty Two Thousand only for the value

Sd/- Sameer Mahajan

To, Sameer Mahajan Kalwa, Mumbai

` 32,000/-

Bill of Exchange

received.


4


STAMP Vitthal Mule 112, Bhawani Road, Wadepuri. 20th Apr, 2009

To, Kishor Gavate 99, Tilak Road, Janapuri.

Sd/- Vitthal Mule

Sixty days after date pay to Mr. Ajay Jamadar, 12, Rajarampuri, Kolhapur

ACCEPTED

` 5,700/-

Bill of Exchange

Sd/- Kishor Gavate 23rd Apr, 2009

or his order the sum of Rupees Five Thousand and Seven Hundred only for the value received.

STAMP Shreenath Patil Bridavan Dham, Nasik 15th Oct, 2007

To, Narayan Shastri Shiv Colony, Dadar, Mumbai.

Sd/- Shreenath Patil

Ninety days after date pay to Mr. Gopal Sharma, Samrat Nagar, Thane or

ACCEPTED

` 9,990/-

Bill of Exchange

Sd/- Narayan Shastri 19th Oct, 2007

his order the sum of Rupees Nine Thousand Nine Hundred and Ninety only

for the value received.


5


STAMP Mrs. Archana Patil Vikram Nagar, Patan. 28th Dec, 2007

To, Mrs. Nalini Maniyar Jalaram Krupa, Mul.

Sd/- Mrs. Archana Patil

Ninety days after date pay to Mrs. Sheela Ghatkar, Mangal Yog, CIDCO,

ACCEPTED

` 17,575/-

Bill of Exchange

Sd/- Mrs. Nalini Maniyar

2nd Jan, 2008

Hundred and Seventy Five only for value received.

Aurangabad or her’s order the sum of Rupees Seventeen Thousand Five

STAMP Shri. Amar Patil Guruwar Peth, Karad. 31st Dec, 2007

To, Shri. Mehul Maniyar Mul.

Sd/- Shri. Amar Patil

Two months after date pay to Mr. Yogesh Ghatkar, CIDCO, Aurangabad

ACCEPTED

` 9,500/-

Bill of Exchange

Sd/- Shri. Mehul Maniyar

2nd Jan, 2008

only for the value received.

or his order the sum of Rupees Nine Thousand and Five Hundred


6


STAMP Renuka Hazari 104,Umang, Ambajogai. 20th Nov, 2007

To, Vimal Wadikar Nanded Road, Udgir.

Sd/- Renuka Hazari

Sixty days after date pay to Radhika Desai, Parli Vaijanath or her’s order

ACCEPTED

` 5,500/-

Bill of Exchange

Sd/- Vimal Wadikar 22nd Nov, 2007

received.

the sum of Rupees Five Thousand and Five Hundred only for the value

STAMP Subhash Suryawanshi Main Road, Ajara 25th May, 2006

To, Madhukar Bharati Amboli Road, Sawantwadi

Sd/- Subhash Suryawanshi

Sixty days after date pay to Mr. Manoj Desai, Amboli or his order the sum

ACCEPTED

` 5,700/-

Bill of Exchange

Sd/- Madhukar Bharati 28th May, 2006

of Rupees Five Thousand and Seven Hundred only for the value received.


7


STAMP Jaya Ansari Bajaj Road, Vile Parle (West). 21st Sep, 2012

Three months after date pay to Mamta Beherwani, Malaviya Road, Vile

Sd/- Jaya Ansari ACCEPTED

24th Sep, 2012

Parle or her’s order the sum of Rupees Twenty Two Thousand only for the

Sd/- Sameera Parmar

To, Sameera Parmar Senapati Bapat Marg, Lower Parel.

` 22,000/-

Bill of Exchange

value received.

STAMP Rajesh Patil 205, High Towers, M.G.Road, Pune. 5th Jan, 2011

Nashik or her’s order the sum of Rupees Nine Thousand and Five

To, Rajneesh Gandhi 210, Business House, Main Road, Surat.

Sd/- Rajesh Patil

Sixty days after date pay to Vasundhara Joshi, 403, Commerce House,

ACCEPTED

` 9,500

Bill of Exchange

Sd/- Rajneesh Gandhi

10th Jan, 2011

Hundred only for the value received.


8


STAMP Rupesh Mishra Shivaji Park, Dadar, Mumbai. 10th Dec, 2012

Ninty days after date pay to Vimal Jain, Kolhapur or his order the sum of

Sd/- Rupesh Mishra

ACCEPTED

14th Dec, 2012

Rupees Seventeen Thousand Eight Hundred only for the value received.

To, Amit Kale Vikram Nagar, Patan

` 17,800/-

Bill of Exchange

Sd/- Amit Kale

STAMP Rajkumar Mohan, S.V.Road, Borivali 5th Jan, 2013

One month after date pay to Sonia Sainani, Kopri, Thane or her’s order

Sd/- Rajkumar Mohan

ACCEPTED FOR ` 45,000 ONLY

7th Jan, 2013

the sum of Rupees Forty Nine Thousand only for the value received.

To, Madan Raj L.B.S. Road, Thane.

` 49,000/-

Bill of Exchange

Sd/- Madan Raj


9


STAMP Bhavik Maniyar Bazar Chowk, MUL. 1st Jan, 2008

To, Mangesh Ghatkar Mangal Yog, Aurangabad.

Sd/- Bhavik Maniyar

Three months after date pay to Mr. Abhijit Patil, 423, Vikram Nagar,


` 15,555/-

Bill of Exchange

Sd/- Mangesh Ghatkar

3rd Jan, 2008

Patan or his order the sum of Rupees Fifteen Thousand Five Hundred

and Fifty Five only for the value received.

STAMP Ajit Patil Viveknagar, Pune. 22nd Feb, 2008

To, Sujit Kale Main Road, Latur.

Two months after date pay to Mr. Ranjit Jagadale, Nashik or his order


` 5,500/-

Bill of Exchange

Sd/- Sujit Kale

27th Feb, 2008

received.

the sum of Rupees Five Thousand and Five Hundred only for the value

Sd/- Ajit Patil


10

Solution to Practice Q.19.:

Type B: Practical Questions Solution to Practice Q.1.: In the Books of Vijay

Journal Entries

Date Particulars L.F. Debit

` Credit

` 2012

Ajay’s A/c To Sales A/c

(Being goods sold on credit)

Dr.

12,000

12,000Aug 1

Aug 1 Bills Receivable A/c To Ajay’s A/c (Being bill drawn for 3 months)

Dr. 12,000 12,000

Sep 1 Purchases A/c To Raj’s A/c (Being goods purchased on credit)

Dr. 20,000 20,000

Sep 1 Raj’s A/c To Bills Receivable A/c To Bank A/c (Being bill endorsed to Raj and balance amount paid by cheque)

Dr. 20,000 12,000 8,000

Total: 64,000 64,000

STAMP Ramesh Mishra L.B.S. Road, Ghatkopar Mumbai. 17th Feb, 2014

Amaravati or his order the sum of Rupees Twenty Five Thousand only

To, Nandkumar Sharma, Laxmi Road, Pune

Sd/- Ramesh Mishra

Ninety days after date pay to Mr. Rupesh Kumar Pande, Rajkamal Chowk,


` 25,000

Bill of Exchange

Sd/- Nandkumar Sharma

20th Feb, 2014

for the value received.


11

In the Books of Ajay Journal Entries

Date Particulars L.F. Debit `

Credit `

2012 Purchases A/c

To Vijay’s A/c (Being goods purchased on credit)

Dr.

12,000

12,000Aug 1

Aug 1 Vijay’s A/c To Bills Payable A/c (Being bill accepted for 3 months)

Dr. 12,000 12,000

Nov 4 Bills Payable A/c To Cash A/c (Being bill honoured)

Dr. 12,000 12,000

Total: 36,000 36,000

In the Books of Raj Journal Entries


Credit `

2012 Vijay’s A/c

To Sales A/c (Being goods sold on credit)

Dr.

20,000

20,000Sep 1

Sep 1 Bills Receivable A/c To Vijay’s A/c (Being endorsement received)

Dr. 12,000 12,000

Sep 1 Bank A/c To Vijay’s A/c (Being balance amount received by cheque)

Dr. 8,000 8,000

Sep 1 Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)

Dr. Dr.

11,760 240

12,000

Total: 52,000 52,000 Solution to Practice Q.2.: In the Books of Bhagyashri (Drawer)

Journal Entries Date Particulars L.F. Debit

` Credit

`1. Rupa’s A/c

To Sales A/c (Being good sold on credit)

Dr. 24,000 24,000

2. Cash A/c To Rupa’s A/c

(Being cash received on the spot)

Dr. 10,000 10,000

3. Bills Receivable A/c To Rupa’s A/c

(Being bill drawn for balance for 4 months)

Dr. 14,000 14,000

4. Bank A/c Discount A/c

To Bills Receivable A/c (Being bill discounted with the bank)

Dr. Dr.

13,650 350

14,000


12

5. Rupa’s A/c To Bank A/c

(Being discounted bill dishonoured and noting charges paid by bank)

Dr. 14,200 14,200

6. Cash A/c To Rupa’s A/c

(Being part payment received along with full amount of noting charges)

Dr. 7,200 7,200

7. Rupa’s A/c To Interest A/c

(Being interest receivable on the balance amount)

Dr. 100 100

8. Bills Receivable A/c To Rupa’s A/c

(Being new bill drawn for 2 months along with interest)

Dr. 7,100 7,100

Total: 90,600 90,600 Solution to Practice Q.3.: In the Books of Sparsh (Drawer)


` Credit

`2013

Rashi’s A/c To Sales A/c

(Being goods sold on credit)

Dr.

13,000

13,000Jul 15

Jul 15 Bills Receivable I A/c To Rashi’s A/c (Being bill I drawn for 2 months)

Dr. 5,000 5,000

Jul 15 Bill Receivable II A/c To Rashi’s A/c (Being bill II drawn for 3 months)

Dr. 8,000 8,000

Aug 14 Bill Sent for Collection A/c To Bills Receivable I A/c (Being bill sent for collection)

Dr. 5,000 5,000

Aug 14 Cash / Bank A/c Discount A/c To Bills Receivable II A/c (Being bill discounted with the bank)

Dr. Dr.

7,840 160

8,000

Oct 18 Rashi’s A/c To Bill Sent for Collection A/c (Being bill sent for collection dishonoured)

Dr. 5,000 5,000

Oct 18 Rashi’s A/c To Cash A/c (Being noting charges paid)

Dr. 100 100

Total: 44,100 44,100

Rashi’s Account Dr. Cr.

Date Particulars J.F. Amount `


2013 2013 Jul 15 To Sales A/c 13,000 Jul 15 By Bills Receivable I A/c 5,000Oct 18 To Bill Sent for Collection A/c 5,000 Jul 15 By Bills Receivable II A/c 8,000

Oct 18 To Cash A/c 100 By Balance c/d 5,100

18,100 18,100


13

Solution to Practice Q.4.: In the Books of Sunita (Drawer) Journal Entries


Credit `

2013 Sep 19 Vijay’s A/c


Dr. 25,000 2,5000

Sep 19 Bills Receivable A/c To Vijay’s A/c (Being bill drawn for 3 months)

Dr. 25,000 25,000

A. Dec 22 Cash A/c

To Bills Receivable A/c (Being bill honoured)

Dr. 25,000 25,000

B. Sep 19 Cash / Bank A/c

Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)

Dr. Dr.

24,062 938

25,000

C. Sep 19 Sachin’s A/c

To Bills Receivable A/c (Being bill endorsed to Sachin)

Dr. 25,000 25,000

D. Dec 16 Bill Sent for Collection A/c

To Bills Receivable A/c (Being bill sent for collection)

Dr. 25,000 25,000

Dec 22 Cash A/c To Bill Sent for Collection A/c (Being bill sent for collection honoured)

Dr. 25,000 25,000

Total: 1,75,000 1,75,000

In the Books of Vijay (Drawee) Journal Entries


Credit `

2013 Sep 19 Purchases A/c

To Sunita’s A/c (Being goods puchased on credit)

Dr. 25,000 25,000

Sep 19 Sunita’s A/c To Bills Payable A/c (Being bill accepted for 3 months)

Dr. 25,000 25,000

A. Dec 22 Bills Payable A/c

To Cash A/c (Being bill honoured)

Dr. 25,000 25,000

B. Dec 22 Bills Payable A/c


Dr. 25,000 25,000


14

C. Dec 22 Bills Payable A/c


Dr. 25,000 25,000

D. Dec 22 Bills Payable A/c


Dr. 25,000 25,000

Total: 1,50,000 1,50,000 Solution to Practice Q.5.: In the Books of Jainee (Drawer)


` Credit

`1. Hena’s A/c


Dr. 25,000 25,000

2. Bills Receivable A/c To Hena’s A/c (Being bill drawn for 3 months)

Dr. 20,000 20,000

3. Cash A/c To Hena’s A/c (Being balance paid by Hena)

Dr. 5,000 5,000

4. Purchases A/c To Viral’s A/c (Being goods purchased on credit)

Dr. 20,000 20,000

5. Viral’s A/c To Bills Receivable A/c (Being bill endorsed to Viral)

Dr. 20,000 20,000

6. Hena’s A/c To Viral’s A/c (Being endorsed bill dishonoured)

Dr. 20,000 20,000

7. Cash A/c To Hena’s A/c (Being noting charges and interest paid by Hena)

Dr. 850 850

8. Bills Receivable A/c To Hena’s A/c (Being new bill drawn)

Dr. 20,000 20,000

9. Cash A/c To Bills Receivable A/c (Being new bill honoured)

Dr. 20,000 20,000

Total: 1,50,850 1,50,850

In the Books of Viral (Drawer) Journal Entries


Credit `

1. Jainee’s A/c To Sales A/c (Being goods sold on credit)

Dr. 20,000 20,000

2. Bills Receivable A/c To Jainee’s A/c (Being endorsement received)

Dr. 20,000 20,000


15

3. Jainee’s A/c To Bills Receivable A/c (Being bill dishonoured)

Dr. 20,000 20,000

4. Jainee’s A/c To Cash A/c (Being noting charges paid)

Dr. 150 150

Total: 60,150 60,150

In the Books of Jainee (Drawer) Hena’s Account

Dr. Cr.



1. To Sales A/c 25,000 2. By Bills Receivable A/c 20,0006. To Viral’s A/c 20,000 3. By Cash A/c 5,000− To Interest A/c 700 7. By Cash A/c 850− To Viral’s A/c 150 8. By Bills Receivable A/c 20,000

45,850 45,850

Solution to Practice Q.6.: In the books of Bunty (Drawer)


` Credit

`1. Bills Receivable A/c

To Vicky’s A/c (Being bill drawn for 3 months)

Dr. 12,000 12,000


To Bills Receivable A/c (Being bill discounted with bank)

Dr. Dr.

11,800 200

12,000

3. Vicky’s A/c To Bank A/c

(Being discounted bill dishonoured and noting charges paid by bank)

Dr. 12,100 12,100

4. Bank A/c To Vicky’s A/c

(Being part payment received along with noting charges)

Dr. 3,100 3,100

5. Vicky’s A/c To Interest A/c


Dr. 270 270

6. Bills Receivable A/c To Vicky’s A/c

(Being new bill drawn for 3 months with interest)

Dr. 9,270 9,270

7. Bill Sent for Collection A/c To Bills Receivable A/c

(Being bill sent to bank for collection)

Dr. 9,270 9,270

8. Bank A/c Bank Charges A/c

To Bill Sent for Collection A/c (Being bill honoured and bank charges debited)

Dr. Dr.

9,200 70

9,270

Total: 67,280 67,280


16

In the Books of Vicky (Drawee) Bunty’s Account

Dr. Cr.



1. To Bills Payable A/c 12,000 − By Balance b/d 12,0003. To Bank A/c 3,100 2. By Bills Payable A/c 12,1005. To Bills Payable A/c 9,270 4. By Interest A/c 270 24,370 24,370

Solution to Practice Q.7.: In the books of Sakshi (Drawer)


` Credit

`1. Seema’s A/c


Dr. 20,000 20,000

2. Bills Receivable A/c To Seema’s A/c (Being bill drawn for 3 months)

Dr. 20,000 20,000

3. Seema’s A/c To Bills Receivable A/c (Being retained bill cancelled)

Dr. 20,000 20,000

4. Seema’s A/c To Interest A/c (Being interest receivable)

Dr. 500 500

5. Cash A/c To Seema’s A/c (Being part payment received along with interest)

Dr. 10,500 10,500

6. Bills Receivable A/c To Seema’s A/c (Being new bill drawn for the balance amount due)

Dr. 10,000 10,000

7. Cash A/c To Bills Receivable A/c (Being new bill honoured)

Dr. 10,000 10,000

Total: 91,000 91,000 Solution to Practice Q.8.: In the Books of Priyesh (Drawer)


` Credit

`2013

Bills Receivable A/c To Charmi’s A/c (Being bill drawn for 3 months)

Dr.

15,000

15,000Apr 30

May 4 Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection to bank)

Dr. 15,000 15,000

Aug 1 Charmi’s A/c To Bill Sent for Collection A/c (Being bill cancelled)

Dr. 15,000 15,000


17

Aug 1 Charmi’s A/c To Interest A/c (Being interest receivable)

Dr. 400 400

Aug 1 Cash A/c To Charmi’s A/c (Being part payment received)

Dr. 5,000 5,000

Aug 1 Bills Receivable A/c To Charmi’s A/c (Being new bill drawn for the balance amount due along with interest)

Dr. 10,400 10,400

Aug 31 Charmi’s A/c To Bills Receivable A/c (Being new bill dishonoured)

Dr. 10,400 10,400

Nov 1 Cash / Bank A/c Bad debts A/c To Charmi’s A/c (Being Charmi became insolvent and only ` 5,000 amount recovered)

Dr. Dr.

5,000 5,400

10,400

Total: 81,600 81,600

In the Books of Charmi (Drawee) Journal Entries


Credit `

2013 Priyesh’s A/c To Bills Payable A/c (Being bill accepted for 3 months)

Dr.

15,000

15,000Apr 30

Aug 1 Bills Payable A/c To Priyesh’s A/c (Being bill cancelled)

Dr. 15,000 15,000

Aug 1 Priyesh’s A/c To Cash A/c (Being part payment made)

Dr. 5,000 5,000

Aug 1 Interest A/c To Priyesh’s A/c (Being interest payable on balance amount)

Dr. 400 400

Aug 1 Priyesh’s A/c To Bills Payable A/c (Being new bill accepted for 2 months along with interest)

Dr. 10,400 10,400

Nov 1 Bills Payable A/c To Priyesh’s A/c (Being new bill dishonoured)

Dr. 10,400 10,400

Nov 1 Priyesh’s A/c To Cash / Bank A/c To Deficiency A/c (Being amount paid in full settlement)

Dr. 10,400 5,000 5,400

Total: 66,600 66,600


18

Solution to Practice Q.9.: In the Books of Sanjay (Drawer) Journal Entries


Credit `

1. Bills Receivable A/c To Pappu’s A/c

(Being bill drawn for 3 months)

Dr. 12,000 12,000


To Bills Receivable A/c (Being bill discounted with the bank)

Dr. Dr.

11,700 300

12,000

3. Pappu’s A/c To Bills Receivable A/c

(Being bill dishonoured and noting charges paid)

Dr. 12,200 12,200

4. Cash A/c To Pappu’s A/c

(Being part payment received)

Dr. 4,000 4,000

5. Bills Receivable A/c To Pappu’s A/c

(Being new bill accepted)

Dr. 8,200 8,200

6. Vinayak’s A/c To Bills Receivable A/c

(Being new bill endorsed)

Dr. 8,200 8,200

Total: 56,600 56,600

In the Books of Pappu (Drawee) Sanjay’s Account

Dr. Cr.



1. To Bills Payable A/c 12,000 - By Balance b/d 12,0003. To Cash A/c 4,000 2. By Bills Payable A/c 12,0005. To Bills Payable A/c 8,200 4. By Noting Charges A/c 200

24,200 24,200 Solution to Practice Q.10.: In the Books of Giridhar (Drawer)


` Credit

`2007

Bills Receivable A/c To Shridhar’s A/c


Dr.

24,000

24,000Mar 12

Mar 12 Murlidhar’s A/c To Bills Receivable A/c

(Being bill endorsed)

Dr. 24,000 24,000

Jun 12 Shridhar’s A/c To Murlidhar’s A/c

(Being endorsed bill cancelled on request of Shridhar)

Dr. 24,000 24,000

Jun 12 Bank A/c To Shridhar’s A/c


Dr. 12,000 12,000


19

Jun 12 Shridhar’s A/c To Interest A/c


Dr. 200 200

Jun 12 Bills Receivable A/c To Shridhar’s

(Being new bill drawn for 2 months)

Dr. 12,200 12,200

Jun 12 Bill Sent for Collection A/c To Bills Receivable A/c

(Being new bill sent to bank for collection)

Dr. 12,200 12,200

Aug 14 Bank A/c Bank Charges A/c

To Bill Sent for Collection A/c (Being new bill collected by bank)

Dr. Dr.

12,100 100

12,200

Total: 1,20,800 1,20,800Shridhar’s Account

Dr. Cr.



2007 2007 Mar 12 To Balance b/d 24,000 Mar 12 By Bills Receivable A/c 24,000Jun 12 To Murlidhar’s A/c 24,000 Jun 12 By Bank A/c 12,000Jun 12 To Interest A/c 200 Jun 12 By Bills Receivable 12,200

48,200 48,200

Solution to Practice Q.11.: In the Books of Subhash (Drawer)

Journal Entries


Credit `

1. Bills Receivable A/c To Prakash’s A/c


Dr. 20,000 20,000



Dr. Dr.

19,500 500

20,000

3. Prakash’s A/c To Bank A/c

(Being dishonour of bill and noting charges paid by bank)

Dr. 20,100 20,100

4. Cash A/c To Prakash’s A/c

(Being part payment and noting charges received in cash)

Dr. 10,100 10,100

5. Prakash’s A/c To Interest A/c

(Being interest receivable)

Dr. 500 500

6. Bills Receivable A/c To Prakash’s A/c

(Being new bill received for balance amount including interest)

Dr. 10,500 10,500

Total: 81,200 81,200


20

Prakash’s Account Dr. Cr.



– To Balance b/d 20,000 1. By Bills Receivable A/c 20,0003. To Bank A/c 20,100 4. By Cash/Bank A/c 10,1005. To Interest A/c 500 6. By Bills Receivable A/c 10,500

40,600 40,600 Solution to Practice Q.12.: In the Books of Jaya (Drawer)


` Credit

`2010

Bills Receivable A/c To Maya’s A/c


Dr.

54,000

54,000Jan 1

Jan 1 Bank A/c Discount A/c


Dr. Dr.

52,560 1,440

54,000

May 4 Maya’s A/c To Bank A/c

(Being bill cancelled on request of Maya)

Dr. 54,000 54,000

May 4 Cash A/c To Maya’s A/c


Dr. 36,000 36,000

May 4 Maya’s A/c To Interest A/c


Dr. 360 360

May 4 Bills Receivable A/c To Maya’s A/c


Dr. 18,360 18,360

May 4 Bill Sent for Collection A/c To Bills Receivable A/c

(Being bill sent to bank for collection)

Dr. 18,360 18,360

Jul 7 Bank A/c To Bill Sent for Collection A/c

(Being bill honoured)

Dr. 18,360 18,360

Total: 2,53,440 2,53,440

In the Books of Maya (Drawee) Jaya’s Account

Dr. Cr.



2010 2010 Jan 1 To Bills Payable A/c 54,000 Jan 1 By Balance b/d 54,000May 4 To Cash A/c 36,000 May 4 By Bills Payable A/c 54,000May 4 To Bills Payable A/c 18,360 May 4 By Interest A/c 360

1,08,360 1,08,360


21

Solution to Practice Q.13.: In the Books of Suhas (Drawee) Journal Entries


Credit `

1. Sunil’s A/c To Bills Payable A/c

(Being bill accepted for 3 months)

Dr. 10,000 10,000

2. Bills Payable A/c To Sunil’s A/c (Being bill cancelled)

Dr. 10,000 10,000

3. Interest A/c To Sunil’s A/c (Being interest payable on the balance amount)

Dr. 200 200

4. Sunil’s A/c To Cash A/c (Being part payment made along with interest on balance amount)

Dr. 5,700 5,700

5. Sunil’s A/c To Bills Payable A/c (Being new bill accepted for 2 months for the balance amount)

Dr. 4,500 4,500

6. Bills Payable A/c To Cash A/c To Rebate A/c (Being bill retired and rebate received)

Dr. 4,500 4,403

97

Total: 34,900 34,900

In the Books of Sunil (Drawer) Suhas’s Account

Dr. Cr.



− To Balance b/d 10,000 1 By Bills Receivable A/c 10,0003 To Bank A/c 10,000 4 By Cash A/c 5,7005 To Interest A/c 200 6 By Bills Receivable A/c 4,500

20,200 20,200

Solution to Practice Q.14.: In the Books of Ram (Drawer) Journal Entries


Credit `

1. Bills Receivable A/c To Krishna’s A/c (Being bill drawn for 3 months)

Dr. 20,000 20,000

2. Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with bank)

Dr. Dr.

19,500 500

20,000

3. Krishna’s A/c To Bank A/c (Being discounted bill cancelled at the request of Krishna)

Dr. 20,000 20,000

4. Krishna’s A/c To Interest A/c (Being interest receivable)

Dr. 350 350


22

5. Bills Receivable A/c To Krishna’s A/c (Being new bill drawn for 2 months including noting charges and interest)

Dr. 20,500 20,500

6. Cash A/c Rebate A/c To Bills Receivable A/c (Being bill retired and ` 1,500 rebate allowed)

Dr. Dr.

19,000 1,500

20,500

Total: 1,01,350 1,01,350 In the Books of Krishna (Drawee)


` Credit

`1. Ram’s A/c

To Bills Payable A/c (Being bill accepted for 3 months)

Dr. 20,000 20,000

2. Bills Payable A/c To Ram’s A/c (Being bill cancelled)

Dr. 20,000 20,000

3. Interest A/c To Ram’s A/c (Being interest payable)

Dr. 350 350

4. Ram’s A/c To Bills Payable A/c (Being new bill accepted for 2 months including interest and noting charges)

Dr. 20,500 20,500

5. Bills Payable A/c To Rebate A/c To Cash A/c (Being bill retired and ` 1,500 rebate received)

Dr. 20,500 1,500

19,000

Total: 81,350 81,350 Solution to Practice Q.15.: In the Books of Sanjay (Drawer)


` Credit


To Ravi’s A/c (Being bill drawn for 2 months)

Dr. 13,500 13,500

2. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)

Dr. 13,500 13,500

3. Ravi’s A/c To Bill Sent for Collection A/c (Being bill sent for collection dishonoured)

Dr. 13,500 13,500

4. Ravi’s A/c To Cash A/c (Being noting charges paid)

Dr. 100 100

5. Cash A/c To Ravi’s A/c (Being part payment received along with interest and noting charges)

Dr. 3,850 3,850


23

6. Bills Receivable A/c To Ravi’s A/c (Being new bill drawn for the balance amount due)

Dr. 10,000 10,000

7. Cash A/c Rebate A/c To Bills Receivable A/c (Being bill retired and rebate allowed)

Dr. Dr.

9,500 500

10,000

Total: 64,450 64,450

In the Books of Ravi (Drawee) Sanjay’s Account

Dr. Cr.

Date Particulars J.F. Amount

` Date Particulars J.F.

Amount `

1. To Bills Payable A/c 13,500 − By Balance b/d 13,5004. To Cash A/c 3,850 2. By Bills Payable A/c 13,5005. To Bills Payable A/c 10,000 3. By Interest A/c 350

27,350 27,350

Solution to Practice Q.16.: In the Books of Smita (Drawee)

Journal Entries


Credit `

2010 Purchases A/c

To Ramesh’s A/c (Being goods purchased on credit)

Dr.

36,000

36,000Apr 1

Apr 1 Ramesh’s A/c To Bills Payable A/c


Dr. 36,000 36,000

Jun 4 Bills Payable A/c Noting Charges A/c

To Ramesh’s A/c (Being bill dishonoured and noting charges payable)

Dr. Dr.

36,000 60

36,060

Jun 4 Ramesh’s A/c To Cash A/c

(Being part payment made)

Dr. 18,060 18,060

Jun 4 Interest A/c To Ramesh’s A/c

(Being interest payable on the balance amount)

Dr. 450 450

Jun 4 Ramesh’s A/c To Bills Payable A/c

(Being new bill accepted for 2 months)

Dr. 18,450 18,450

Jul 7 Bills Payable A/c To Cash A/c To Rebate A/c

(Being bill retired and rebate received)

Dr. 18,450 18,200

250

Total: 1,63,470 1,63,470


24

Solution to Practice Q.17.: In the Books of Anjali (Drawer) Journal Entries


Credit `

2011 Ravina’s A/c


Dr.

5,000

5,000Apr 1

Apr 1 Cash A/c Discount A/c To Ravina’s A/c (Being part payment received and discount of 5% allowed)

Dr. Dr.

1,900 100

2,000

Apr 1 Bills Receivable A/c To Ravina’s A/c (Being bill drawn for the balance amount due)

Dr. 3,000 3,000

i. Jul 4 Cash A/c

To Bills Receivable A/c (Being bill honoured)

Dr. 3,000 3,000

ii. May 1 Cash / Bank A/c

Discount A/c To Bills Receivable A/c (Bieng bill discounted with bank)

Dr. Dr.

2,940 60

3,000

Aug 4 Ravina’s A/c To Bank A/c (Being discounted bill dishonoured)

Dr. 3,000 3,000

iii. Aug 4 Bills Sent for Collection A/c

To Bills Receivable A/c (Being bill sent for collection)

Dr. 3,000 3,000

Aug 4 Bank A/c Bank Charges A/c To Bill Sent for Collection A/c (Being amount collected by Bank and Charges debited)

Dr. Dr.

2,800 200

3,000

iv. Apr 1 Kantilal’s A/c

To Bills Receivable A/c (Being bill endorsed to Kantilal)

Dr. 3,000 3,000

Aug 4 Ravina’s A/c To Kantilal’s A/c (Being endorsed bill dishonoured)

Dr. 3,000 3,000

Aug 4 Cash / Bank A/c Bad debts A/c To Ravina’s A/c (Being Ravina became insolvent and only 20% amount recovered)

Dr. Dr.

600 2,400

3,000

Total: 34,000 34,000


25

In the Books of Ravina (Drawee) Journal Entries


Credit `

2011 Purchases A/c To Anjali’s A/c (Being goods purchased on credit)

Dr.

5,000

5,000Apr 1

Apr 1 Anjali’s A/c To Cash A/c To Discount A/c (Being part payment made and discount of 5% received)

Dr. 2,000 1,900

100

Apr 1 Anjali’s A/c To Bills Payable A/c (Being bill accepted for 3 months)

Dr. 3,000 3,000

i. Jul 4 Bills Payable A/c


Dr. 3,000 3,000

ii. Aug 4 Bills Payable A/c

To Anjali’s A/c (Being bill dishonoured)

Dr. 3,000 3,000

iii. Aug 4 Bills Payable A/c


Dr. 3,000 3,0000

iv. Aug 4 Bills Payable A/c

To Anjali’s A/c (Being bill dishonoured)

Dr. 3,000 3,000

Aug 4 Anjali’s A/c To Cash / Bank A/c To Deficiency A/c (Being Ravina became insolvent and only 20% amount paid)

Dr. 3,000 600

2,400

Total: 25,000 25,000 Solution to Practice Q.18.: In the Books of Sunil (Drawer)


` Credit

`1. Ramesh’s A/c


Dr. 15,000 15,000

2. Bills Receivable A/c To Ramesh’s A/c (Being bill drawin for 2 months)

Dr. 15,000 15,000

3. Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)

Dr. Dr.

14,875 125

15,000

4. Ramesh’s A/c To Bank A/c (Being discounted bill dishnoured)

Dr. 15,000 15,000


26

5. Cash A/c To Ramesh’s A/c (Being part payment received)

Dr. 8,000 8,000

6. Ramesh’s A/c To Interest A/c (Being interest receivable)

Dr. 140 140

7. Bills Receivable A/c To Ramesh’s A/c (Being new bill drawn for the balance amount due along with interest)

Dr. 7,140 7,140


Dr. 7,140 7,140

9. Ramesh’s A/c To Bill Sent for Collection A/c (Being bill dishnoured)

Dr. 7,140 7,140

10. Cash / Bank A/c Bad Debts A/c To Ramesh’s A/c (Being Ramesh declared insolvent and only 30% amount recovered)

Dr. Dr.

2,142 4,998

7,140

Total: 96,700 96,700 Solution to Practice Q.19.: In the Books of Sushant (Drawer)


` Credit


To Rohan’s A/c (Being bill drawn for 2 months)

Dr. 10,000 10,000


Dr. 10,000 10,000

3. Rohan’s A/c To Bill Sent for Collection A/c (Being bill cancelled at the request of Rohan)

Dr. 10,000 10,000

4. Rohan’s A/c To Interest A/c (Being interest receivable)

Dr. 500 500

5. Cash A/c To Rohan’s A/c (Being part payment received along with interest)

Dr. 5,500 5,500

6. Bills Receivable A/c To Rohan’s A/c (Being new bill drawn on balance amount due)

Dr. 5,000 5,000

7. Rohan’s A/c To Bills Receivable A/c (Being bill dishonoured)

Dr. 5,000 5,000

8. Cash / Bank A/c Bad Debts A/c To Rohan’s A/c (Being Rohan became insolvent and only 40% amount recovered)

Dr. Dr.

2,000 3,000

5,000

Total: 51,000 51,000


27

In the Books of Sushant (Drawer) Rohan’s Account

Dr. Cr.

Date Particulars J.F.Amount

` Date Particulars J.F.

Amount `

− To Balance b/d 10,000 1. By Bills Receivable A/c 10,0003. To Bill Sent for Collection A/c 10,000 5. By Cash A/c 5,5004. To Interest A/c 500 6. By Bills Receivable A/c 5,0007. To Bills Receivable A/c 5,000 8. By Cash / Bank A/c 2,000 8. By Bad Debts A/c 3,000

25,500 25,500

Solution to Practice Q.20.: In the Books of Manisha (Drawer)


` Credit


To Priti’s A/c (Being bill drawn for 4 months)

Dr. 9,000 9,000

2. Shital’s A/c To Bills Receivable A/c

(Being bill endorsed)

Dr. 9,000 9,000

3. Priti’s A/c To Shital’s A/c

(Being bill cancelled on request of Priti)

Dr. 9,000 9,000

4. Priti’s A/c To Interest A/c


Dr. 120 120

5. Cash A/c To Priti’s A/c

(Being part payment received along with interest)

Dr. 3,120 3,120

6. Bills Receivable A/c To Priti’s A/c


Dr. 6,000 6,000

7. Priti’s A/c To Bills Receivable A/c

(Being new bill dishonoured due to insolvency)

Dr. 6,000 6,000

8. Cash/Bank A/c Dr. Bad Debts A/c Dr.

To Priti’s A/c (Being Priti declared insolvent and only 50% amount recovered)

3,000 3,000

6,000

Total: 48,240 48,240 Solution to Practice Q.21.: In the Books of Madhav (Drawee)


` Credit

`1. Kashinath’s A/c

To Bills Payable A/c (Being bill drawn for 3 months)

Dr. 40,000 40,000


28

2. Bills Payable A/c To Kashinath’s A/c

(Being bill cancelled on the request of Madhav)

Dr. 40,000 40,000

3. Interest A/c To Kashinath’s A/c


Dr. 250 250

4. Kashinath’s A/c To Cash/Bank A/c

(Being part payment made along with interest)

Dr. 30,250 30,250

5. Kashinath’s A/c To Bills Payable A/c


Dr. 10,000 10,000

6. Bills Payable A/c To Kashinath’s A/c

(Being new bill dishonoured)

Dr. 10,000 10,000

7. Kashinath’s A/c To Cash/Bank A/c To Deficiency A/c

(Being Madhav declared insolvent and only 35% amount paid)

Dr. 10,000 3,500 6,500

Total: 1,40,500 1,40,500

In the Books of Kashinath (Drawer) Madhav’s Account

Dr. Cr.



– To Balance b/d 40,000 1. By Bills Receivable A/c 40,0002. To Bank A/c 40,000 4. By Cash/Bank A/c 30,2503. To Interest A/c 250 5. By Bills Receivable A/c 10,0006. To Bills Receivable A/c 10,000 7. By Cash/Bank A/c 3,500 7. By Bad Debts A/c 6,500

90,250 90,250

Solution to Practice Q.22.: In the Books of Narendra (Drawee)


` Credit

`1. Surendra’s A/c

To Bills Payable A/c (Being bill accepted for 3 months)

Dr. 8,000 8,000

2. Bills Payable A/c To Surendra’s A/c

(Being bill cancelled on the request of Narendra)

Dr. 8,000 8,000

3. Interest A/c To Surendra’s A/c


Dr. 50 50

4. Surendra’s A/c To Cash A/c

(Being part payment made along with interest)

Dr. 6,050 6,050

5. Surendra’s A/c To Bills Payable A/c

(Being new bill accepted)

Dr. 2,000 2,000


29

6. Bills Payable A/c To Surendra’s A/c

(Being new bill dishonoured)

Dr. 2,000 2,000

7. Surendra’s A/c Dr. To Cash A/c To Deficiency A/c

(Being Narendra declared insolvent and only 25% amount paid)

2,000 500

1,500

Total: 28,100 28,100 Solution to Practice Q.23.: In the Books of Dhamanekar (Drawee)


` Credit

`2008

Jun 01 Purchases A/c To Pednekar’s A/c

(Being goods purchased on credit)

Dr. 40,000 40,000

Jun 01 Pednekar’s A/c To Bills Payable A/c


Dr. 40,000 40,000

Sep 04 Bills Payable A/c To Pednekar’s A/c

(Being bill dishonoured)

Dr. 40,000 40,000

Sep 04 Noting Charges A/c To Pednekar’s A/c

(Being noting charges paid)

Dr. 200 200

Sep 04 Interest A/c To Pednekar’s A/c


Dr. 1,206 1,206

Sep 04 Pednekar’s A/c To Bills Payable’s A/c


Dr. 41,406 41,406

Dec 07 Bills Payable A/c To Pednekar’s A/c

(Being new bill dishonoured due to insolvency)

Dr. 41,406 41,406

Dec 07 Pednekar’s A/c Dr. To Cash A/c To Deficiency A/c

(Being Pednekar declared insolvent and only 1/3rd amount paid)

41,406 13,802 27,604

Total: 2,45,624 2,45,624 Solution to Practice Q.24.: In the Books of Avadhoot


` Credit

`A.

Nisha’s A/c To Nandini’s A/c

(Being endorsed bill dishonoured and noting charges paid)

Dr.

5,100

5,1001.

B. Dhanashri’s A/c

To Bills Receivable A/c (Being bill cancelled on the request of Dhanashri)

Dr.

2,400

2,4002.


30

3. Cash A/c To Dhanashri’s A/c


Dr. 1,200 1,200

4. Dhanashri’s A/c To Interest A/c


Dr. 36 36

5. Bills Receivable A/c To Dhanashri’s A/c

(Being new bill drawn with interest)

Dr. 1,236 1,236

C. Cash A/c Rebate A/c

To Bills Receivable A/c (Being bill retired and rebate allowed)

Dr. Dr.

5,900

100

6,000

6.

D. Shashikala’s A/c

To Bank A/c (Being discounted bill dishonoured and noting charges paid by bank)

Dr.

4,070

4,0707.

E. Bill Sent for Collection A/c

To Bills Receivable A/c (Being bill sent to bank for collection)

Dr.

6,000

6,0008.

Total: 26,042 26,042 Solution to Practice Q.25.: In the Books of Vivek


` Credit

`2010

Mahesh’s A/c

To Sameer’s A/c (Being endorsed bill dishonoured and noting charges paid)

Dr.

32,800

32,800

A. Jan 1

B. Subhash’s A/c

To Bills Receivable A/c (Being bill dishonoured)

Dr.

30,000

30,000Feb 1

Feb 1 Cash A/c To Subhash’s A/c


Dr. 14,000 14,000

Feb 1 Subhash’s A/c To Interest A/c


Dr. 400 400

Feb 1 Bills Receivable A/c To Subhash’s A/c

(Being new bill accepted for 3 months along with interest)

Dr. 16,400 16,400



Dr. Dr.

11,600

400

12,000

Feb 5


31

D. Bill Sent for Collection A/c


Dr.

20,000

20,000Mar 1

Mar 1 Sohan’s A/c To Bill Sent for Collection A/c


Dr. 20,000 20,000

Total: 1,45,600 1,45,600 Solution to Practice Q.26.: In the Books of Ashwin

Journal Entries

Date Particulars L.F. Debit

` Credit

` A.

Bank A/c Bank Charges A/c

To Bill Sent for Collection A/c (Being bill sent for collection collected by bank and charges debited)

Dr. Dr.

5,700

50

5,750

1.

B. Nitin’s A/c

To Bills Receivable A/c (Being bill cancelled on request of Nitin)

Dr.

7,200

7,2002.

3. Cash A/c To Nitin’s A/c


Dr. 2,200 2,200

4. Nitin’s A/c To Interest A/c


Dr. 100 100

5. Bills Receivable A/c To Nitin’s A/c


Dr. 5,100 5,100

C. Bills Payable A/c

To Bills Receivable A/c To Discount A/c

(Being our acceptance to Pravin discharged by endorsing Bhavin’s acceptance to us)

Dr.

4,250

4,000 250

6.

D. Cash/Bank A/c Bad Debts A/c

To Jatin’s A/c (Being Jatin became insolvent and only 40% amount recovered)

Dr. Dr.

3,400 5,100

8,500

7.

Total: 33,100 33,100


32

Solution to Practice Q.27.: In the Books of Manoj Patil Journal Entries


Credit `

2010 Vaishali’s A/c

To Bills Receivable A/c (Being bill cancelled on request of Vaishali)

Dr.

22,400

22,400

A. Jan 1

Jan 1 Cash A/c To Vaishali’s A/c


Dr. 12,000 12,000

Jan 1 Vaishali’s A/c To Interest A/c


Dr. 312 312

Jan 1 Bills Receivable A/c To Vaishali’s A/c

(Being fresh bill accepted for 3 month along with interest)

Dr. 10,712 10,712

B. Feb 1 Cash A/c

Bad Debts A/c To Sadashiv’s A/c

(Being 45% amount received in full settlement)

Dr. Dr.

12,600 15,400

28,000


To Bill Receivable A/c (Being bill retired and rebate allowed)

Dr. Dr.

11,940

60

12,000

Mar 1

D. Bharati’s A/c


(Being bill endorsed and discount earned)

Dr.

6,000

5,750 250

Mar 31

Total: Solution to Practice Q.28.: In the Books of Motilal


` Credit

`A.

Jyoti’s A/c To Bhavna’s A/c


Dr.

3,750

3,750

1.

B. Anil’s A/c

To Bills Receivable A/c (Being bill cancelled on request of Anil)

Dr.

3,400

3,4002.

3. Cash A/c To Anil’s A/c


Dr. 900 900


33

4. Anil’s A/c To Interest A/c


Dr. 50 50

5. Bills Receivable A/c To Anil’s A/c


Dr. 2,550 2,550

C. 6. Cash A/c

Rebate A/c To Bills Receivable A/c

(Being bill retired and rebate allowed)

Dr. Dr.

3,850 150

4,000

D. Arun’s A/c

To Bank A/c (Being discounted bill dishonoured and noting charges paid)

Dr.

7,100

7,100 7.

Total: 21,750 21,750 Solution to Practice Q.29.: In the Books of Ranbir

Journal Entries


Credit `

A. Salman’s A/c

To Sonam’s A/c (Being endorsed bill dishonoured and noting charges paid by Sonam)

Dr.

3,280

3,2801.

B. Ravindra’s A/c

To Bills Receivable A/c (Being bill cancelled on the request of Ravindra)

Dr.

4,800

4,8002.

3. Cash A/c To Ravindra’s A/c

(Being part payment received in cash)

Dr. 1,800 1,800

4. Ravindra’s A/c To Interest A/c


Dr. 60 60

5. Bills Receivable A/c To Ravindra’s A/c


Dr. 3,060 3,060

C. Cash/Bank A/c Rebate A/c


Dr. Dr.

7,920

80

8,000

6.

D. Shirin’s A/c

To Bank A/c (Being discounted bill dishonoured and noting charges paid by bank)

Dr.

5,575

5,5757.

Total: 26,575 26,575


34

Solution to Practice Q.30.: In the Books of Sharad Journal Entries


Credit `

A. Vasant’s A/c

To Hemant’s A/c (Being endorsed bill dishonoured and noting charges paid)

Dr.

5,050

5,050i.

B. Pramod’s A/c


Dr.

15,000

15,000ii.

iii. Pramod’s A/c To Interest A/c


Dr. 250 250

iv. Cash A/c To Pramod’s A/c


Dr. 5,000 5,000

v. Bills Receivable A/c To Pramod’s A/c

(Being new bill drawn for 3 months with interest)

Dr. 10,250 10,250


To Bills Receivable A/c (Being retired and rebate allowed)

Dr. Dr.

7,500

100

7,600

vi.



Dr.

10,000

10,000vii.

viii. Amol’s A/c To Bill Sent for Collection A/c


Dr. 10,000 10,000

Total: 63,150 63,150 Solution to Practice Q.31.: In the Books of Nilesh


` Credit

`A.

Sanjay’s A/c To Naresh’s A/c


Dr.

8,200

8,200i.

B. Sujit’s A/c


Dr.

4,800

4,800ii.

iii. Cash A/c To Sujit’s A/c


Dr. 1,600 1,600

iv. Sujit’s A/c To Interest A/c


Dr. 96 96


35

v. Bills Receivable A/c To Sujit’s A/c


Dr. 3,296 3,296


To Bills Payable A/c (Being bill retired and rebate allowed)

Dr. Dr.

23,760

240

24,000

vi.

D. Prashant’s A/c

To Bank A/c (Being bill dishonoured and noting charges paid by bank)

Dr.

8,160

8,160vii.

Total: 50,152 50,152 Solution to Practice Q.32.: In the Books of Kantilal

Journal Entries Date Particulars L.F.

Debit `

Credit `

A. Sawan’s A/c

To Sandhya’s A/c (Being bill dishonoured and noting charges paid)

Dr.

16,300

16,300i.

B. Nalini’s A/c

To Bills Receivable A/c (Being bill cancelled on request of Nalini)

Dr.

6,000

6,000ii.

iii. Cash A/c To Nalini’s A/c


Dr. 2,000 2,000

iv. Nalini’s A/c To Interest A/c


Dr. 120 120

v. Bills Receivable A/c To Nalini’s A/c


Dr. 4,120 4,120



Dr. Dr.

9,950

50

10,000

vi.

D. Meenakshi’s A/c

To Bill Sent for Collection A/c (Being bill dishonoured)

Dr.

8,000

8,000vii.

Total: 46,540 46,540


36

Solution to Practice Q.33.: In the Books of Bhaskar Journal Entries


Credit `

A. Nishad’s A/c

To Suresh’s A/c (Being bill dishonoured and noting charges paid)

Dr.

2,525

2,525i.

B. Rajesh’s A/c

To Bills Receivable A/c (Being bill cancelled on request of Rajesh)

Dr.

7,500

7,500ii.

iii. Cash A/c To Rajesh’s A/c


Dr. 2,500 2,500

iv. Rajesh’s A/c To Interest A/c

(Being interest receivable on balance amount)

Dr. 125 125

v. Bills Receivable A/c To Rajesh’s A/c


Dr. 5,125 5,125



Dr. Dr.

3,750

50

3,800

vi.



Dr.

5,000

5,000vii.

viii. Dayaram’s A/c To Bill Sent for Collection A/c

(Being bill sent to bank for collection dishonoured by Dayaram)

Dr. 5,000 5,000

Total: 31,575 31,575 Solution to Practice Q.34.: In the Books of Kedarnath


` Credit

`A.

Aloknath’s A/c To Badrinath’s A/c


Dr.

16,500

16,500i.

B. Somnath’s A/c

To Bills Receivable A/c (Being bill cancelled on the request of Somnath)

Dr.

14,400

14,400ii.

iii. Cash A/c To Somnath’s A/c


Dr. 4,400 4,400

iv. Somnath’s A/c To Interest A/c


Dr. 200 200


37

v. Bills Receivable A/c To Somnath’s A/c

(Being new bill drawn along with interest)

Dr. 10,200 10,200



Dr. Dr.

10,250

250

10,500

vi.

D. Cash A/c Bad Debts A/c

To Ramnath’s A/c (Being Ramnath declared insolvent and only 50% amount recovered)

Dr. Dr.

6,250 6,250

12,500

vii.

Total: 68,700 68,700 Solution to Practice Q.35.: In the Books of Jwala


` Credit

`A.

John’s A/c To Abdul’s A/c


Dr.

16,200

16,200i.

B. Sony’s A/c

To Bills Receivable A/c (Being bill cancelled on request of Sony)

Dr.

24,000

24,000ii.

iii. Sony’s A/c To Interest A/c


Dr. 300 300

iv. Cash A/c To Sony’s A/c

(Being part payment received along with interest)

Dr. 12,300 12,300

v. Bills Receivable A/c To Sony’s A/c


Dr. 12,000 12,000

C. Cash A/c Bad Debts A/c

To Trupti’s A/c (Being Trupti became insolvent and only 40% amount recovered)

Dr. Dr.

14,400 21,600

36,000

vi.

D. Rani’s A/c


(Being bill endorsed in full settlement and discount received)

Dr.

6,300

6,000 300

vii.

Total: 1,07,100 1,07,100

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