BILL OF EXCHANGE WITH SOLUTION

3   Journalise the following transactions in the books of Kantilal.                       

(a)  Sandhya informed Kantilal that Sawan’s acceptance for `. 16,000 endorsed to Sandhya has been dishonoured. Noting charges amounted to `. 300.

(b)  Nalini renews her acceptance to Kantilal for `. 6,000 by paying `. 2,000 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months.

(c)  Punam’s acceptance to Kantilal `. 10,000 retired one month before the due date at a discount of 6% p.a.

(d)  Bank informed Kantilal that the bill of `. 8,000 has been dishonoured by Meenakshi which was sent to bank for collection.

In the books of Kantilal

Date	Particulars	LF	Debit (`.)	Credit (`.)
a	SawanA/c……………………………..Dr.      To Sandhya A/c (Being endorsed bill dishonoured and incurred noting charges)		16,300	16,300
b (i)	NaliniA/c……………………………….Dr.      To Bills Receivable A/c (Being bill dishonoured)		6,000	6,000
(ii)	NaliniA/c……………………………….Dr.      To Interest A/c (Being interest due)		120	120
(iii)	CashA/c………………………………..Dr.      To Nalini A/c (Being part payment received)		2,000	2,000
(iv)	Bills Receivable A/c…………………..Dr.      To Nalini A/c (Being new bill drawn and accepted along with interest due after 3 months)		4,120	4,120
c	Cash / Bank A/c……………………..Dr. DiscountA/c…………………………..Dr.      To Bills Receivable A/c (Being bill retired)		9,950 50	10,000
d	Meenakshi A/c………………………Dr.      To Bank for collection A/c (Being bill sent to bank for collection dishonoured)		8,000	8,000
			46540	46540