Question

Mehak sold goods for ₹ 24,000 to Shally on July 31, 2017 and drew three bills for ₹ 6,000, ₹ 8,000 and ₹ 10,000 payable after two, three and four months respectively. The first bill was kept by Mehak with her till maturity date. She endorsed the second bill in favour of her creditor Kanak. The third bill was discounted on September 3, 2017 @ 12% p.a. from bank. The first and second bill were duly met on maturity but the third bill was dishonoured and the bank paid ₹ 150 as noting charges. On December 3, 2017 Shally paid ₹ 5,000 and noting charges in cash and accepted a new bill at two months after date for the balance amount plus interest ₹ 200. The new bill was met on maturity by Shally.
You are required to give the Journal Entries in the books of Mehak.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
July 31	Shally	Dr.		24,000
	To Sales A/c				24,000
	(goods sold to Shally)
July 31	Bill Receivable A/c (I)	Dr.		6,000
	Bill Receivable A/c (II)	Dr.		8,000
	Bill Receivable A/c (III)	Dr.		10,000
	To Shally				24,000
	(bills drawn on Shally)
July 31	Kanak A/c	Dr.		8,000
	To Bill Receivable A/c (II)				8,000
	(bill endorsed to Kanak)
Sept 03	Bank A/c	Dr.		9,700
	Discount charges A/c	Dr.		300
	To Bill Receivable A/c (III)				10,000
	(bill discounted by bank)
Oct 03	Bank A/c	Dr.		6,000
	To Bill Receivable A/c (I)				6,000
	(bill-I matured)
Dec 03	Shally	Dr.		150
	To Bank A/c				150
	(noting charges paid by bank)
Dec 03	Shally	Dr.		200
	To Interest A/c				200
	(Interest due)
Dec 03	Cash A/c	Dr.		5,000
	To Shally				5,000
	(part payment by Shally)
Dec 03	Bill Receivable A/c (IV)	Dr.		5,200
	To Shally				5,200
	(new bill drawn on Shally)
2018	Bank A/c	Dr.		5,200
Feb 07	To Bill Receivable A/c (IV)				5,200
	(bill matured)