Question

Journalise the following in the books of Neelam:

(i) Neelam acceptance to Dinesh for 2;000 renewed at 3 months together with interest @ 18% per annum.

(ii) Ranjan requests Neelam to renew her acceptance. for 1,500 for two months. Neelam agrees to it provided interest. is paid to her @ 20% per annum in cash.

(iii) Neelam's acceptance in favour of Guddi for 15,000 dishonoured and noting charges paid by Guddi 20, which was paid by cheque later on.

Answer 1

Journal Enteries
In the books of Neelam

$\begin{array}{ccccc}\text{S.No}& \text{Particulars}& \text{L.F}& \text{Debit}& \text{Credit}\\ & & & \text{Amount}{(}^{\prime })& \text{Amount}{(}^{\prime })\\ \left(i\right)& \text{Bills payable A/c}\text{Dr}& & 2,000& \\ & \text{To Dinesh}& & & 2,000\\ & \text{(Being bills payable to Dinesh cancelled for}& & & \\ & \text{renewal)}& & & \\ & \text{Interest A/c}\text{Dr}& & 90& \\ & \text{To Dinesh}& & & 90\\ & \underset{–}{\text{(Being interest due to Dinesh for 3 months)}}& & & \\ & \text{Dinesh}\text{Dr.}& & 2,090& \\ & \text{To Bills Payable A/c}& & & 2,090\\ & \underset{–}{\text{Being new bills payable issued to Dinesh}}& & & \\ \left(ii\right)& \text{Rajan}\text{Dr}& & 1,500& \\ & \text{To Bills Receivalbe A/c}& & & \\ & \text{(Being bills receivable of Rajan cancelled for}& & & \\ & \underset{–}{\text{renewal)}}& & & \\ & \text{Cash A/c}\text{Dr.}& & 50& \\ & \text{To Interest A/c}& & & 50\\ & \underset{–}{\text{(Being interest received from Rajan in cash)}}& & & \\ & \text{Bills Receivable A/c}\text{Dr.}& & 1,500& \\ & \text{To Rajan}& & & 1,500\\ & \underset{–}{\text{(Being new bill received from Rajan)}}& & & \\ \left(iii\right)& \text{Bills payable A/c}\text{Dr.}& & 15,000& \\ & \text{Noting Charges A/c}\text{Dr.}& & 20& \\ & \text{To Guddi}& & & 15,020\\ & \underset{–}{\text{Being bills payable to Guddi dishonoured}}& & & \\ & \text{Guddi}\text{Dr.}& & 15,020& \\ & \text{To Bank A/c}& & & 15,020\\ & \text{Being amount paid to Guddi}& & & \end{array}$