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Question

Journalise the following transaction in the books of Rajni:
Geeta's acceptance of ₹ 20,000 which had been discounted with the bank for ₹ 19,500 has been returned by the Bank dishonoured. Noting charges paid by Bank ₹ 25.

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Solution

Books of Rajni
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
Geeta Dr.
20,025
To Bank A/c
20,025
(Discounted bill dishonoured and noting charges paid)

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