Page 152 - ISCDEBK-XI

Bill of Exchange 17.17
Aug. 4 Bills Payable A/c ...Dr. 40,000
Noting Charges A/c ...Dr. 600
To Z 40,600
(Being the bill for ` 40,000 dishonoured—noting charges ` 600)
Sept. 4 Bills Payable A/c ...Dr. 20,000
Noting Charges A/c ...Dr. 600
To Z 20,600
(Being the bill for ` 20,000 dishonoured—noting charges ` 600)

Sept. 5 Interest A/c ...Dr. 3,363
To Z (Note) 3,363
(Being the interest payable for the extended period)
Sept. 5 Z ...Dr. 64,563
To Bills Payable A/c 64,563
(Being the acceptance of a new bill for the balance plus interest)
Dec. 8 Bills Payable A/c ...Dr. 64,563
To Z 64,563
(Being the bill dishonoured at maturity)
Z ...Dr. 64,563
To Bank A/c 19,369
To Deficiency A/c 45,194
(Being a final dividend of 30% paid in full settlement)

Note: Interest for the extended period:
`
` 40,600 for 4 months @ 18% p.a. 2,436
` 20,600 for 3 months @ 18% p.a. 927
3,363
Illustration 9.
Record the following in the Journal:
(a) Our own acceptance to Gupta & Co. for ` 5,000 dishonoured due to omission of necessary
instructions to our bank. Gupta & Co., claims ` 5,200 including noting charges which is
settled by issue of cheque.
(b) Patil’s promissory note for ` 10,000 endorsed in favour of Wadekar was dishonoured.
Wadekar paid ` 250 as noting charges. We paid Wedekar by cheque and accepted from
Patil another bill for the amount due plus interest ` 300.
(c) Renewed our acceptance to Kaul & Bros. for ` 20,000 by cheque ` 8,000 and a new bill for
the balance at 3 months at 10% p.a. interest.
(d) Vijay Malhotra’s acceptance for ` 7,500 renewed for 2 months at 12% p.a. interest.
(e) Our acceptance to Mohan for ` 20,000 retired before the date, rebate allowed to us was ` 250.
( f) Our acceptance to Ajay Verma for ` 12,000 was discharged by Arun Thaman’s acceptance
to us for a similar amount.
(g) Roy’s acceptance for ` 14,000 which we sent to the bank for collection was returned by the
bank as being dishonoured. Bank paid ` 200 as noting charges.
(h) Gaurav renewed a bill for ` 13,000 drawn by us by paying us ` 5,000 and accepting a new
bill for the balance for 2 months, interest at 12% p.a. being paid in cash forthwith.