Page 155 - ISCDEBK-XI

17.20 Double Entry Book Keeping—ISC XI
? Bank A/c ...Dr. 9,850
Discounting Charges A/c ...Dr. 150
To Bills Receivable A/c 10,000
(Being the bill discounted for ` 9,850)
April 4 B ...Dr. 10,175
To Bank A/c 10,175
(Being the bill dishonoured at maturity—noting charges
` 175 paid)

April 5 Cash A/c ...Dr. 175
To B 175
(Being noting charges received in cash)

April 5 B ...Dr. 100
To Interest A/c 100
(Being the interest due @ 6% p.a. on ` 10,000 for 2 months)

April 5 Bills Receivable A/c ...Dr. 10,100
To B 10,100
(Being the acceptance of the fresh bill received from B)

June 8 B ...Dr. 10,100
To Bills Receivable A/c 10,100
(Being the bill dishonoured at maturity)

June 8 Cash A/c ...Dr. 5,000
To B 5,000
(Being the part payment received)

June 8 B ...Dr. 150
To Interest A/c 150
(Being the interest charged for the period extended,
(i.e., ` 5,250 – ` 5,100 = ` 150)
June 8 Bills Receivable A/c ...Dr. 5,250
To B 5,250
(Being a further bill drawn on B for 3 months and accepted by him)
Sept. 11 B ...Dr. 5,250
To Bills Receivable A/c 5,250
(Being the 3rd bill also dishonoured)
Dec. 1 Bank A/c (` 5,250 × 60/100) ...Dr. 3,150
Bad Debts A/c (` 5,250 × 40/100) ...Dr. 2,100
To B 5,250
(Being a first and final dividend received from the estate of B
@ 60 paise in a rupee)