Question

Harpal sold goods to Sompal for ₹ 12,000. Sompal accepted three bills of exchange, the first for ₹ 5,000 at one month, the second for ₹ 4,000 at two months and the third for ₹ 3,000 at three months. Harpal endorsed the first bill to Rajpal. The first bill was dishonoured. Rajpal paid ₹ 30 as noting charges. Harpal charged ₹ 200 for interest and drew on Sompal a fourth bill for ₹ 5,230. The second bill was also dishonoured, noting charges paid being ₹ 25. Harpal charged ₹ 150 as interest and accepted ₹ 2,175 in cash and drew a fifth bill for ₹ 2,000. The bill was paid on due date. The third and fourth bills were also met.
Pass Journal entries in the books of Harpal and prepare Sompal's Account in Harpal's Ledger.

Answer 1

Books of Harpal Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Sompal	Dr.		12,000
	To Sales A/c				12,000
	(Goods sold to Sompal)
	Bills Receivable A/c (1)	Dr.		5,000
	Bills Receivable A/c (2)	Dr.		4,000
	Bills Receivable A/c (3)	Dr.		3,000
	To Sompal				12,000
	(Sompal accepted the bills)
	Rajpal	Dr.		5,000
	To Bills Receivable A/c (1)				5,000
	(Bill endorsed in favour of Rajpal)
	Sompal	Dr.		5,030
	To Rajpal				5,030
	(Bill dishonoured on due date and noting charges paid by Rajpal)
	Sompal	Dr.		200
	To Interest A/c				200
	(Interest due to be received)
	Bills Receivable A/c (4)	Dr.		5,230
	To Sompal				5,230
	(Sompal accepted the new bill)
	Sompal	Dr.		4,025
	To Bills Receivable A/c (2)				4,000
	To Cash A/c				25
	(Bill dishonoured on due date and noting charges paid)
	Sompal	Dr.		150
	To Interest A/c				150
	(Interest due to be received)
	Cash A/c	Dr.		2,175
	Bills Receivable A/c (5)	Dr.		2,000
	To Sompal				4,175
	(Rs 2,175 received in cash and a new bill for Rs 2,000 has been accepted by Sompal)
	Cash A/c	Dr.		3,000
	To Bills Receivable A/c (3)				3,000
	(Bill honoured on due date)
	Cash A/c	Dr.		5,230
	To Bills Receivable A/c (4)				5,230
	(Bill honoured on due date)
	Cash A/c	Dr.		2,000
	To Bills Receivable A/c (5)				2,000
	(Bill honoured on due date)

Sompal’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
		Sales A/c		12,000		Bills Receivable A/c (1)		5,000
		Rajpal		5,030		Bills Receivable A/c (2)		4,000
		Interest A/c		200		Bills Receivable A/c (3)		3,000
		Bills Receivable A/c (2)		4,000		Bills Receivable A/c (4)		5,230
		Cash A/c		25		Cash A/c		2,175
		Interest A/c		150		Bills Receivable A/c (5)		2,000
				21,405				21,405