Page 141 - ISCDEBK-XI

17.6 Double Entry Book Keeping—ISC XI
March 4 Cash A/c ...Dr. 2,475
To Interest A/c (` 55,000 × 18/100 × 3/12) 2,475
(Being the interest received)
March 4 Bills Receivable (III) A/c ...Dr. 55,000
To B 55,000
(Being the new bill accepted)
June 7 B ...Dr. 55,000
To Bills Receivable (III) A/c 55,000
(Being the bills receivable (III) dishonoured)
June 7 Bad Debts A/c ...Dr. 55,000
To B 55,000
(Being the amount due from B becoming irrecoverable)

In the Books of B (Drawee)
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2021
Jan. 1 Purchases A/c ...Dr. 1,00,000
To A 1,00,000
(Being the purchases made from A)
Jan. 1 A ...Dr. 1,00,000
To Bills Payable (1) A/c 45,000
To Bills Payable (2) A/c 30,000
To Cash A/c 25,000
(Being the two acceptances given for total ` 75,000 and balance
paid in cash)
March 4 Bills Payable (1) A/c ...Dr. 45,000
Noting Charges A/c ...Dr. 100
To A 45,100
(Being the bill payable (1) dishonoured on due date)
March 4 Bills Payable (2) A/c ...Dr. 30,000
Noting Charges A/c ...Dr. 80
To A 30,080
(Being the bill payable (2) dishonoured)
March 4 A ...Dr. 20,180
To Cash A/c 20,180
(Being the part payment made along with noting charges)
March 4 Interest A/c ...Dr. 2,475
To Cash A/c 2,475
(Being the interest paid to A)
March 4 A ...Dr. 55,000
To Bills Payable (3) A/c 55,000
(Being the bill accepted for the balance amount)
June 7 Bills Payable (3) A/c ...Dr. 55,000
To A 55,000
(Being the bills payable (3) dishonoured on due date)
June 7 A ...Dr. 55,000
To Deficiency or Profit & Loss A/c 55,000
(Being the amount of unpaid bill transferred)