Question

Journalise the following in the books of Hari.
Sohan informs Hari that Mohan's acceptance for ₹ 13,000, endorsed in favour of Sohan by Hari, has been dishonoured. Sohan agrees to accept ₹ 3,000 in cash and an acceptance at 3 months together with interest @ 12% per annum.

Answer 1

Journal in the books of Hari
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Mohan’s A/c	Dr.		13,000
	To Sohan’s A/c				13,000
	(Bill dishonoured)
	Sohan’s A/c	Dr.		3,000
	To Cash A/c				3,000
	(Cash paid)
	Interest A/c	Dr.		300
	To Sohan’s A/c				300
	(Interest due on Rs 10,000 @ 12% for 3 months)
	Sohan’s A/c	Dr.		10,300
	To Bills Payable A/c				10,300
	(New bill accepted)