Page 148 - ISCDEBK-XI

Bill of Exchange 17.13
April 5 Bills Receivable A/c ...Dr. 5,320
To Bindu 5,320
(Being the Bill accepted by Bindu against dues of Bill together with
noting charges of ` 20 and interest of ` 300)
Bank A/c ...Dr. 5,320
To Bills Receivable A/c 5,320
(Being the cash received)
In the Books of Bindu
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Jan. 1 Anil ...Dr. 10,000
To Bills Payable A/c 10,000
(Being the acceptance of Anil’s bill given against purchase of goods)
April 4 Bills Payable A/c ...Dr. 10,000
Noting Charges A/c ...Dr. 20
To Anil 10,020
(Being the dishonour of Anil’s bill and ` 20 noting charges incurred by Anil)
April 5 Anil ...Dr. 5,000
To Bank A/c 5,000
(Being the part payment against dishonour of Anil’s bill)
April 5 Interest A/c ...Dr. 300
To Anil 300
(Being the interest payable for renewal of bill)
April 5 Anil ...Dr. 5,320
To Bills Payable A/c 5,320
(Being the acceptance of a bill against the dues of bill cancelled together
with noting charges and interest)
Bills Payable A/c ...Dr. 5,320
To Bank A/c 5,320
(Being the payment of Anil’s Bill)
Illustration 6.
Journalise the following transactions in the books of Ravi:
(i) Ravi’s acceptance to Dinesh for ` 10,000 renewed at 3 months on the condition that
` 2,000 be paid in cash immediately and the remaining amount will carry interest @ 10% p.a.
(ii) Ravi’s acceptance to Shyam for ` 5,000 is retired before the due date, rebate received
being ` 200.
(iii) Ravi gets Govinda’s acceptance for ` 12,000 at 2 months discounted at 12% p.a. Later,
the bill is dishonoured on the due date and the bank pays ` 50 as noting charges.

Solution: In the Books of Ravi
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Bills Payable A/c ...Dr. 10,000
To Dinesh 10,000
(Being the bill cancelled for renewal)