Page 147 - ISCDEBK-XI

17.12 Double Entry Book Keeping—ISC XI
Feb. 4 Bills Sent for Collection A/c ...Dr. 18,000
To Bills Receivable A/c 18,000
(Being the Bill No. III sent to bank for collection)
March 4 Chetan ...Dr. 16,240
To Bank A/c 16,240
(Being the Bill No. II dishonoured, noting charges ` 240)
March 4 Chetan ...Dr. 300
To Interest A/c 300
(Being the Interest for 2 months charged to Chetan)
March 4 Bills Receivable A/c ...Dr. 16,540
To Chetan 16,540
(Being the Bill No. IV received from Chetan at two months)
April 4 Bank A/c ...Dr. 18,000
To Bills Sent for Collection A/c 18,000
(Being the Bill No. III collected by Bank)
May 7 Bank/Cash A/c ...Dr. 16,540
To Bills Receivable A/c 16,540
(Being the amount of Bill No. IV collected on matuirty)
Illustration 5.
Anil draws a bill of exchange on Bindu for goods supplied, for ` 10,000 dated 1st January at
three months. Bindu accepts the bill and thereafter on 4th January Anil discounts it with his
bank at 8 per cent per annum. The bill is dishonoured on presentation on the due date and the
bankers debit Anil with ` 20 noting expenses in addition to the value of the bill. Bindu pays
Anil cash ` 5,000 on 5th April and simultaneously accepts a fresh bill for the balance due by
him, including ` 300 for interest and noting expenses on the first bill. The bill is paid in time.
Journalise the above transactions in the books of Anil and Bindu.

Solution: In the Books of Anil
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Jan. 1 Bills Reveivable A/c ...Dr. 10,000
To Bindu 10,000
(Being the Bill accepted by Bindu for goods)
Jan. 4 Bank A/c ...Dr. 9,800
Discounting Charges A/c ...Dr. 200
To Bills Receivable A/c 10,000
(Being the discounting of Bindu’s Bill)
April 4 Bindu ...Dr. 10,020
To Bank A/c 10,020
(Being the dishonour of Bindu’s acceptance on presentation by the
Bank and the Noting Charge ` 20 incurred by Bank)
April 5 Bank A/c ...Dr. 5,000
To Bindu 5,000
(Being the part payment by Bindu against the bill dishonoured)
April 5 Bindu ...Dr. 300
To Interest A/c 300
(Being the interest charged in consideration of accepting a new bill)