Page 151 - ISCDEBK-XI

17.16 Double Entry Book Keeping—ISC XI
Solution: In the Books of Z
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2021
June 1 Bills Reveivable A/c ...Dr. 60,000
To K 60,000
(Being the acceptance received of the two bills of ` 40,000 and
` 20,000 drawn on K for 2 and 3 months respectively)
June 1 R ...Dr. 42,000
To Bills Receivable A/c 40,000
To Discount Received A/c 2,000
(Being the bill for ` 40,000 endorsed in favour of R in full settlement
of a debt of ` 42,000)
June 4 Bank A/c ...Dr. 19,250
Discounting Charges A/c ...Dr. 750
To Bills Receivable A/c 20,000
(Being the bill for ` 20,000 discounted @ 15% p.a.)

Aug. 4 K ...Dr. 40,600
Discount Received A/c ...Dr. 2,000
To R 42,600
(Being the bill for ` 40,000 dishonoured at maturity—noting charges ` 600)
Sept. 4 K ...Dr. 20,600
To Bank A/c 20,600
(Being the bill for ` 20,000 dishonoured at maturity—noting charges ` 600)
Sept. 5 K ...Dr. 3,363
To Interest A/c (Note) 3,363
(Being the interest charged for the extended period)
Sept. 5 Bills Receivable A/c ...Dr. 64,563
To K 64,563
(Being a new bill drawn for the balance plus interest duly accepted by K)
Dec. 8 K ...Dr. 64,563
To Bills Receivable A/c 64,563
(Being the bill dishonoured at maturity)
Bank A/c ...Dr. 19,369
Bad Debts A/c ...Dr. 45,194
To K 64,563
(Being a final dividend of 30% received in full settlement)

In the Books of K
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2021
June 1 Z ...Dr. 60,000
To Bills Payable A/c 60,000
(Being the acceptance given of two bills of ` 40,000 and ` 20,000
from Z respectively for 2 and 3 months)