Question

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.

Answer 1

In the Books of Sachin JOURNAL

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{2016}& & & & \\ \text{Jan 15}& \text{Narain's A/c}\text{Dr.}& & \text{30,000}& \\ & \text{To Sales A/c}& & & \text{30,000}\\ & \text{(Goods sold to Narain)}& & & \\ & \underset{–}{}& & & \\ \text{Jan 15}& \text{Bills Receivable A/c}\text{Dr.}& & \text{30,000}& \\ & \text{To Narain's A/c}& & & \text{30,000}\\ & \text{(Bills received from Narain)}& & & \\ & \underset{–}{}& & & \\ \text{Jan 31}& \text{Bank A/c}\text{Dr.}& & \text{29.250}& \\ & \text{Discounting Charges A/c}\text{Dr.}& & \text{750}& \\ & \text{To Bills Receivable A/c}& & & \text{30,000}\\ & \text{(Bills receivable discounted)}& & & \\ & \underset{–}{}& & & \\ \text{Apr 18}& \text{Narain's A/c}\text{Dr.}& & \text{30,000}& \\ & \text{To Bank A/c}& & & \text{30,000}\\ & \text{(Bill dishonoured)}& & & \\ & \underset{–}{}& & & \\ \text{Apr 18}& \text{Cash A/c}\text{Dr.}& & \text{10,500}& \\ & \text{To Narain's A/c}& & & \text{10,000}\\ & \text{To Interest A/c}& & & \text{500}\\ & \text{(Cash received from Narain)}& & & \\ & \underset{–}{}& & & \\ \text{Apr 18}& \text{Bills Receivable A/c}\text{Dr.}& & \text{20,000}& \\ & \text{To Narain's A/c}& & & \text{20,000}\\ & \text{(New bill received)}& & & \\ & \underset{–}{}& & & \\ \text{Apr 18}& \text{Kapil's A/c}\text{Dr.}& & \text{20,000}& \\ & \text{To Bills Receivable A/c}& & & \text{20,000}\\ & \text{(Bill endorsed to Kapil)}& & & \end{array}$