The bank informed Mr. Ashok Agrawal
that Kamlesh’s acceptance for Rs. 12,000 sent to bank for collection had been
honoured and bank charges debited were Rs. 60.
Discharged Dr. Ashok Agrawal’s
acceptance to Mahesh for Rs. 15,250 by endorsing Prakash’s acceptance to Mr.
Ashok Agrawal for Rs. 15,100.
Vishal renewed his acceptance to Mr.
Ashok Agrawal for Rs. 11,200 by paying Rs. 6000 in cash and accepting a fresh
bill for the balance plus interest @ 12% p.a. for three months.
Dinesh who had accepted Mr. Ashok
Agrawal’s bill of Rs. 14,000 was declared bankrupt and only 45% of the amount
due could be recovered from his estate.
Journal Entries in the Books of Mr.
Ashok Agrawal
|
Sr. No.
|
Particulars
|
JF
|
DEBIT
|
CREDIT
|
|
a
|
Bank A/c
....Dr.
|
11940
|
||
|
|
Bank
Charges A/c ....Dr.
|
|
60
|
|
|
|
To Bank for
collection A/c
|
|
|
12000
|
|
|
[Being the
sent to bank for collection bill is dishonoured and bank charges debited]
|
|
|
|
|
b. i.
|
Bills Payable
A/c ....Dr.
|
|
15250
|
|
|
|
To Bills
Receivable A/c
|
|
|
15100
|
|
|
To Discount
A/c
|
|
|
150
|
|
|
[Being our
acceptance is discharged by endorsing Prakash's acceptance at a discount]
|
|
|
|
|
C. i.
|
Vishal's
A/c ....Dr.
|
|
11200
|
|
|
|
To Bills Receivable
A/c
|
|
|
11200
|
|
|
[Being the
bill is dishonoured]
|
|
|
|
|
ii.
|
Vishal's A/c
....Dr.
|
|
156
|
|
|
|
To Interest
A/c
|
|
|
156
|
|
|
[Being the
Interest is Charged]
|
|
|
|
|
iii.
|
Cash A/c ....Dr.
|
|
6000
|
|
|
|
To Vishal's
A/c
|
|
|
6000
|
|
|
[Being the
part payment is made]
|
|
|
|
|
iv.
|
Bills
Receivable A/c ....Dr.
|
|
5356
|
|
|
|
To Vishal's
A/c
|
|
|
5356
|
|
|
[Being the
new bill is drawn along with Interest]
|
|
|
|
|
D. i.
|
Dinesh's
A/c ....Dr.
|
|
14000
|
|
|
|
To Bills
Receivable A/c
|
|
|
14000
|
|
|
[Being the
bill is dishonoured]
|
|
|
|
|
ii.
|
Bank A/c ....Dr.
|
|
6300
|
|
|
|
Bad Debts
A/c ....Dr.
|
|
7700
|
|
|
|
To Dinesh's
A/c
|
|
|
14000
|
|
|
[Being the
Drawee become Insolvent and only 45% of the amount could be recovered from
his estate.]
|
|
|
|