Q. 4. Bills of Exchange Solution: Click here to get the Solution.
Journal Entries in the books of Sayali.
Date
|
Particulars
|
L.F.
|
Debit (Rs.)
|
Credit (Rs.)
|
(1)
|
Manali’s A/c ....... Dr.
|
40000
| ||
To Sales A/c
|
40000
| |||
[Being the goods are sole]
| ||||
(2)
|
Bills Receivable A/c .... Dr.
|
40000
| ||
To Manali’s A/c
|
40000
| |||
[Being the bill is drawn ]
| ||||
(3)
|
Bank A/c .... Dr.
|
38800
| ||
Discount A/c ..... Dr
|
1200
| |||
To Bills Receivable A/c
|
40000
| |||
[Being the bill is discounted]
| ||||
(4)
|
Manali’s A/c .... Dr.
|
40300
| ||
To Bank A/c
|
40300
| |||
[Being the bill is dishonoured and noting charges charged]
| ||||
(5)
|
Manali’s A/c .... Dr.
|
750
| ||
To Interest A/c
|
750
| |||
[Being the interest is charged]
| ||||
(6)
|
Cash A/c ..... Dr.
|
20300
| ||
To Manali’s A/c
|
20300
| |||
[Being the part payment is made along with Noting charges]
| ||||
(7)
|
Bills Receivable A/c .... Dr.
|
20750
| ||
To Manali’s A/c
|
20750
| |||
[Being the new bill is drawn along with interest]
| ||||
(8)
|
Manali’s A/c .... Dr.
|
20750
| ||
To Bills Receivable A/c
|
20750
| |||
[Being the bill is dishonoured]
| ||||
(9)
|
Cash A/c ... Dr.
|
8300
| ||
Bad debts A/c .... Dr.
|
12450
| |||
To Manali’s A/c
|
20750
| |||
[Being the drawee become insolvent and only 40 % of the amount could be recovered from her private estate. ]
|
