Page 153 - ISCDEBK-XI

17.18 Double Entry Book Keeping—ISC XI
Solution: JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

(a) Bills Payable A/c ...Dr. 5,000
Noting Charges A/c ...Dr. 200
To Gupta & Co. 5,200
(Being our acceptance to Gupta & Co. dishonoured and noting
charges ` 200 paid by Gupta & Co.)
Gupta & Co. ...Dr. 5,200
To Bank A/c 5,200
(Being the payment made by cheque)
(b) Patil ...Dr. 10,250
To Wadekar 10,250
(Being the Patil’s promissory note for ` 10,000 endorsed in favour of
Wadekar dishonoured and noting charges ` 250 paid by Wadekar)
Wadekar ...Dr. 10,250
To Bank A/c 10,250
(Being the payment made by cheque)
Patil ...Dr. 300
To Interest A/c 300
(Being the interest charged for the extended period of credit)
Bills Receivable A/c ...Dr. 10,550
To Patil 10,550
(Being acceptance given by Patil for the amouont due ` 10,250
plus interest ` 300)
(c) Bills Payable A/c ...Dr. 20,000
To Kaul & Bros. 20,000
(Being the old acceptance to Kaul & Bros. cancelled)
Kaul & Bros. ...Dr. 8,000
To Bank A/c 8,000
(Being the part payment of the old bill made by cheque)
Interest A/c ...Dr. 300
To Kaul & Bros. 300
(Being interest @ 10% on ` 12,000—the balance of the
old bill—for 3 months)
Kaul & Bros. ...Dr. 12,300
To Bills Payable A/c 12,300
(Being the new acceptance given for 3 months for the balance of
the amount of old bill plus interest ` 300)
(d) Vijay Malhotra ...Dr. 7,500
To Bills Receivable A/c 7,500
(Being the Vijay Malhotra’s acceptance cancelled)
Vijay Malhotra ...Dr. 150
To Interest A/c 150
(Being the interest charged @ 12% p.a. for 2 months on ` 7,500)
Bills Receivable A/c ...Dr. 7,650
To Vijay Malhotra 7,650
(Being the new acceptance for 2 months received including interest)