CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

Aashirwad draws on Aakarshak a bill of exchange for 3 months for 10,000 which Aakarshak accept on January 01, 2011. Aashirwad endorses the bill in favour of Aakriti before maturity. Aakkarshak approaches Aashirwad with the request that the bill is renewed for a further period of 3 months @ 18% p.a. interest. Aashirwad pays the sum to Aakriti on the due date and agrees to the proposal of Aakarshak. Record-Journal Entries in the books of Aashirwad assuming that the second bill is duly met.


Solution

                                                                            Journal Entries
                                                                   In the books of Aashirwad

DateParticularsL.F.Amount Dr.(')Amount Cr.(Rs)2011Jan.1Bills Receivable A/c                                    Dr10,000   To Aakarshak10,000(Being acceptance received from Aakarshak)  ––––––––––––––––––––––––––––––––––––––––––––––––Aakriti                                                      Dr10,000   To Bills Receivable A/c10,000(Being bill endorsed to Aakriti)                       ––––––––––––––––––––––––––––––––––––––––––––––Apr.4Aakarshak                                             Dr10,000   To Aakriti10,000(Being bill of Aakarshak cancelled on hisrequest for renewal)                                         –––––––––––––––––––––––––––––––––––––––––––––Aakriti                                                       Dr10,000   To Cash A/c10,000(Being payment of bill made of Aakriti)          –––––––––––––––––––––––––––––––––––––––––––––––Aakarshak                                                    Dr450   To Interest A/c450(Being interest shown due for renewal)          ––––––––––––––––––––––––––––––––––––––––––––––Bills Receivable A/c                                       Dr10,450   To Aakarshak10,450(Being bill received from Aakarshak)            ––––––––––––––––––––––––––––––––––––––––––––––July 7Cash A/c                                                  Dr10,450   To Bills Receivable A/c10,450(Being cash received against bill)

flag
 Suggest corrections
thumbs-up
 
0 Upvotes


Similar questions
View More



footer-image