Question

​Journalise the following transactions in our books:
(a) Our acceptance to Karan for ​₹ 4,500 renewed for 3 months on the condition that ₹ 2,500 is paid in cash immediately and a new bill to be drawn including interest @ 12% p.a.
(b) A bill payable accepted in favour of Hari for ₹ 4,000 returned unpaid due to lack of instructions to the bank. Hari claims ₹ 4,050. (₹ 50 as noting charges), which is paid by cheque.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(a)	B/P A/c	Dr.		4,500
	To Karan				4,500
	(bill cancelled)
	Interest allowed A/c	Dr.		60
	To Karan				60
	(interest payable for 3 months)
	Karan	Dr.		4,560
	To Cash A/c				2,500
	To B/P A/c				2,060
	(cash and new acceptance given to Karan)
(b)	B/P A /c	Dr.		4,000
	Noting charges A/c	Dr.		50
	To Hari				4,050
	(B/P dishonoured)
	Hari	Dr.		4,050
	To Bank A/c				4,050
	(Hari’s account being settled)