Badrinath informs
Kedarnath that Aloknath's Acceptance of Rs. 16,000 endorsed to Badrinath has
been dishonoured and noting charges amounted to Rs. 500.
Somnath renews his acceptance of Rs. 14,400 to Kedarnath by
paying cash Rs. 4,400 and accepting a new bill for 2 months for the balance
plus interest @ 12% p.a.
Vishwanath retired his acceptance for Rs. 10,500 to
Kedarnath by paying in cash Rs. 10,250.
Recovered only 50% of the amount due from his private estate
of Ramnath, who declared as insolvent, against his bill of Rs. 12,500.
Journal Entries
in the books of Kedarnath.
|
Sr. No.
|
Particulars
|
JF
|
DEBIT
|
CREDIT
|
|
a.
|
Aloknath's
A/c .....Dr.
|
16500
|
||
|
|
To
Badrinath A/c
|
|
|
16500
|
|
|
[Being the
endorsed bill is dishonoured along with Noting Charges]
|
|
|
|
|
b. i.
|
Somnath's
A/c .....Dr.
|
|
14400
|
|
|
|
To Bills
Receivable A/c
|
|
|
14400
|
|
|
[Being the
bill is dishonoured]
|
|
|
|
|
ii.
|
Somnath's
A/c .....Dr.
|
|
200
|
|
|
|
To Interest
A/c
|
|
|
200
|
|
|
[Being the
Interest is charged]
|
|
|
|
|
iii.
|
Cash A/c .....Dr.
|
|
4400
|
|
|
|
To
Somnath's A/c
|
|
|
4400
|
|
|
[Being the
part – payment is made]
|
|
|
|
|
iv.
|
Bills
Receivable A/c .....Dr.
|
|
10200
|
|
|
|
To
Somnath's A/c
|
|
|
10200
|
|
|
[Being the
new bill is drawn along with interest]
|
|
|
|
|
c.
|
Cash A/c .....Dr.
|
|
10250
|
|
|
|
Rebate A/c .....Dr.
|
|
250
|
|
|
|
To Bills Receivable
A/c
|
|
|
10500
|
|
|
[Being the
bill is retired]
|
|
|
|
|
d. i.
|
Ramnath's
A/c .....Dr.
|
|
12500
|
|
|
|
To Bills Receivable
A/c
|
|
|
12500
|
|
|
[Being the
bill is dishonoured]
|
|
|
|
|
ii.
|
Bank A/c .....Dr.
|
|
6250
|
|
|
|
Bad Debts
A/c .....Dr.
|
|
6250
|
|
|
|
To
Ramnath's A/c
|
|
|
12500
|
|
|
[Being the
drawee become insolvent and only 50% of the amount due could be recovered
from his estate]
|
|
|
|
