On 15th January, 2016, Sachin sold goods for Rs. 30,000 to Narain and drew upon latter a bill for the same amount payable after 3 months. The bill was accepted by Narain. The bill was discounted by Sachin from his bank for Rs. 29.250 on 31st January, 2016. On maturity, the bill was dishonoured. He further agreed to pay Rs. 10,500 in cash including Rs. 500 interest and accept a new bill for 2 months for the remaining Rs. 20,000. The new bill was endorsed by Sachin in favour of his creditor Kapil for debt of Rs. 20,000. The new bill was duly met by Narain on maturity. Give the journal entries in the books of Sachin.
In the Books of Sachin JOURNAL
DateParticularsL.F.Amt. (Dr.)Amt. (Cr.)2016Jan 15Narain's A/c Dr. 30,000 To Sales A/c 30,000(Goods sold to Narain) –––––––––––––––––––––––––––––––––––––––––Jan 15Bills Receivable A/c Dr. 30,000 To Narain's A/c 30,000(Bills received from Narain) –––––––––––––––––––––––––––––––––––––––––Jan 31Bank A/c Dr. 29.250Discounting Charges A/c Dr. 750 To Bills Receivable A/c 30,000(Bills receivable discounted) –––––––––––––––––––––––––––––––––––––––––Apr 18Narain's A/c Dr. 30,000 To Bank A/c 30,000(Bill dishonoured) –––––––––––––––––––––––––––––––––––––––––Apr 18Cash A/c Dr. 10,500 To Narain's A/c 10,000 To Interest A/c 500(Cash received from Narain) –––––––––––––––––––––––––––––––––––––––––Apr 18Bills Receivable A/c Dr. 20,000 To Narain's A/c 20,000(New bill received) –––––––––––––––––––––––––––––––––––––––––Apr 18Kapil's A/c Dr. 20,000 To Bills Receivable A/c 20,000(Bill endorsed to Kapil)