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Question

Abdula sold goods to Tahir on Jan 17, 2017 for Rs 18,000. He drew a bill of exchange for the same amount on Tahir for 45 days. On the same date Tahir accepted the bill and returned it to Abdulla. On the due date Abdulla presented the bill to Tahir which was dishonoured. Abdulla paid Rs 40 as noting charges. Five days after the dishonour of his acceptance Tahir settled his debt by making a payment of Rs 18,700 including interest and noting charges. Record the necessary journal entries in the books of Abdulla and Tahir. Also prepare Tahir's account in the books of Abdulla and Abdulla's account in the books of Tahir.

 

 


Solution

Books of Abdula

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2017

 

     

 

 

Jan.17

Tahir

Dr.

 

18,000

 

 

 

To Sales A/c

     

18,000

 

(Goods sold to Tahir)

     

 

 

 

       

 

Jan.17

Bills Receivable A/c

Dr.

 

18,000

 

 

 

To Tahir

     

18,000

 

(Tahir's acceptance received)

     

 

 

 

       

 

Mar.06

Tahir

Dr.

 

18,040

 

 

 

To Bills Receivable A/c

     

18,000

 

 

To Cash

     

40

 

(Tahir's acceptance dishonoured and Rs 40 paid as

noting charges)

   

 

 

         

 

Mar.06

Tahir

Dr.

 

660

 

 

 

To Interest A/c

     

660

 

(Interest charged from Tahir on account of bill

dishonoured)

     

 

 

         

 

Mar.12

Cash A/c

Dr.

 

18,700

 

 

 

To Tahir

     

18,700

 

(Tahir cleared his account by paying cash)

     

 

           
               

 

Ledger 

 Tahir’s Account

Dr.

           

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.17

Sales

 

18,000

Jan.17

Bills Receivable

 

18,000

Mar.06

Bills Receivable

 

18,000

Mar.11

Cash

 

18,700

Mar.06

Cash

 

40

 

 

 

 

Mar.06

Interest

 

660

 

 

 

 

 

 

 

36,700

 

 

 

36,700

 

 

 

 

 

 

 

 

 

Books of Tahir

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2017

 

   

 

 

Jan.17

Purchases A/c

Dr.

 

18,000

 

 

 

To Abdula

     

18,000

 

(Goods bought from Abdula)

     

 

 

 

       

 

Jan.17

Abdula

Dr.

 

18,000

 

 

 

To Bills Payable A/c

     

18,000

 

(Bill drawn by Abdula accepted, payable after 15 days)

     

 

 

 

       

 

Mar.06

Bills Payable A/c

Dr.

 

18,000

 

 

Noting Charges A/c

Dr.

 

40

 

 

 

To Abdula

     

18,040

 

(Abula’s bill dishonoured)

     

 

 

         

 

Mar.07

Interest A/c

Dr.

 

660

 

 

 

To Abdula

     

660

 

(Interest charged on account of bill dishonoured)

     

 

           

 

Mar.11

Abdula

Dr.

 

18,700

 

   

To Cash A/c

     

18,700

 

(Cash paid to Abdula)

     

 

 

 

 

 

 

 

 

 

Ledger

 Abdula’sAccount

Dr.

           

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.17

Bills Payable

 

18,000

Jan.17

Purchases

 

18,000

Mar.11

Cash

 

18,700

Mar.06

Bills Payable

 

18,000

 

 

 

 

Mar.06

Noting Charges

 

40

 

 

 

 

Mar.06

Interest

 

660

 

 

 

36,700

 

 

 

36,700

 

 

 

 

 

 

 

 

 


Accountancy
Financial Accounting- I - NCERT Solutions (2019)
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