Page 159 - ISCDEBK-XI

17.24 Double Entry Book Keeping—ISC XI
In the Books of B
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2021
Jan. 1 Purchases A/c ...Dr. 30,000
To A 30,000
(Being the purchase of goods from A)
Jan. 1 A ...Dr. 30,000
To Bills Payable A/c 30,000
(Being the acceptance of the bill given to A)

April 4 Bills Payable A/c ...Dr. 30,000
Noting Charges A/c ...Dr. 100
To A 30,100
(Being the bill dishonoured by us at maturity and
noting charges payable)

April 4 A ...Dr. 10,000
To Bank A/c 10,000
(Being the part payment made)

April 4 Interest A/c ...Dr. 242
To A 242
(Being the interest payable to A for renewing the bill)

April 4 A ...Dr. 12,000
To Bills Payable A/c 12,000
(Being the acceptance of a bill for one month)
April 4 A ...Dr. 8,342
To Bills Payable A/c 8,342
(Being the acceptance of another bill for 3 months for the balance
amount with interest)
May 7 Bills Payable A/c ...Dr. 12,000
To Bank A/c 12,000
(Being the first bill discharged)

May 7 Bills Payable A/c ...Dr. 8,342
To A 8,342
(Being the bill for 3 months dishonoured due to insolvency)

July 4 A ...Dr. 8,342
To Bank A/c 4,171
To Deficiency or Profit & Loss A/c 4,171
(Being 50% of the amount due paid in full settlement and the balance in
A’s Account transferred to Deficiency or Profit & Loss Account)