Page 154 - ISCDEBK-XI

Bill of Exchange 17.19
(e) Bills Payable A/c ...Dr. 20,000
To Bank A/c 19,750
To Rebate A/c 250
(Being our acceptance for ` 20,000 retired before due date for ` 19,750)
(f) Bills Payable A/c ...Dr. 12,000
To Bills Receivable A/c 12,000
(Being the acceptance to Ajay Verma discharged by endorsing
Arun Thaman’s acceptance in favour of Ajay Verma)
(g) Roy ...Dr. 14,200
To Bills Sent for Collection A/c 14,000
To Bank A/c 200
(Being the bills sent to the bank for collection dishonoured and noting
charges paid by bank debited to Roy and credited to Bank)
(h) Gaurav ...Dr. 13,000
To Bills Receivable A/c 13,000
(Being the Gaurav’s acceptance cancelled)
Cash A/c ...Dr. 5,000
To Gaurav 5,000
(Being part payment of the old bill received)
Cash A/c ...Dr. 160
To Interest A/c 160
(Being the interest on ` 8,000—balance of the bill—for 2 months @ 12% p.a.)
Bills Receivable A/c ...Dr. 8,000
To Gaurav 8,000
(Being the new acceptance for 2 months received from Gaurav)
Illustration 10.
On 1st January, 2021, A sold goods to the value of ` 10,000 to B on credit and draws a bill for
three months for the same amount. B accepts it and returns it to A. The bill was discounted for
` 9,850. On the due date, B notified his inability to meet the bill and requested A to take it up
and pay the noting charge of ` 175, which A did. The following day B met his obligation with
a bill at two months for the amount together with interest at 6% p.a. and paid cash for noting
charges. When the bill became due, B paid ` 5,000 and accepted a fresh bill at three months
for ` 5,250. B became insolvent before this last bill become due and a first and final divided of
60 paise in a rupee was received from his easte on 1st December, 2021.
Pass the necessary Journal entries in the books of A to record the above transaction.
Solution: JOURNAL OF A
Date Particulars L.F. Dr. (`) Cr. (`)
2021
Jan. 1 B ...Dr. 10,000
To Sales A/c 10,000
(Being the goods sold to B on credit)
Jan. 1 Bills Receivable A/c ...Dr. 10,000
To B 10,000
(Being the acceptance of the bill received from B)