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                   AccountancyFinancial Accounting- I - NCERT Solutions (2019)All

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