Page 143 - ISCDEBK-XI

17.8 Double Entry Book Keeping—ISC XI
April 18 Y ...Dr. 2,025
To Z 2,025
(Being the bill endorsed to Z returned dishonoured and noting
charges incurred by Z)

May 18 Y ...Dr. 3,025
To Bank A/c 3,025
(Being the bill discounted with the bank returned dishonoured and
noting charges incurred by bank)
May 30 Bank A/c ...Dr. 2,525
Bad Debts A/c ...Dr. 2,525
To Y 5,050
(Being 50% of the amount due from Y received and the balance
written off as bad debts)

Note: Banker’s discounting charge has been calculated for 64 days (March—16 days, April—30 days and
May—18 days).

JOURNAL OF Y
Date Particulars L.F. Dr. (`) Cr. (`)
2021
Feb. 12 Purchases A/c ...Dr. 6,000
To X 6,000
(Being the goods purchased from X on credit)

Feb. 15 X ...Dr. 6,000
To Bills Payable (I, II & III) A/c 6,000
(Being the bills for ` 3,000, ` 2,000 and ` 1,000 accepted in favour
of X payable after 3 months, 2 months and 1 month respectively)
March 18 Bills Payable (III) A/c ...Dr. 1,000
To Bank A/c 1,000
(Being the bill for ` 1,000 paid at maturity)

April 18 Bills Payable (II) A/c ...Dr. 2,000
Noting Charges A/c ...Dr. 25
To X 2,025
(Being the bill for ` 2,000 not paid at maturity and noting
charges payable)
May 18 Bills Payable (I) A/c ...Dr. 3,000
Noting Charges A/c ...Dr. 25
To X 3,025
(Being the bill for ` 3,000 not paid at maturity and noting
charges payable)
May 30 X ...Dr. 5,050
To Bank A/c 2,525
To Deficiency or Profit & Loss A/c 2,525
(Being 50% of the amount due to X paid and the balance transferred
to Deficiency or Profit & Loss Account)