PRACTICAL PROBLEMS

Journalise the following bill transactions as on 21^st May, 2010 in the books of Prabodhan.

A. Renewed Veerendra’s acceptance of Rs 17,500 due on 21^st May 2010 with interest Rs 500 for 2 months.

B. Bank informed that Radhabai’s acceptance of Rs 1,400 which was discounted dishonoured, bank paid noting charges Rs 185.

C. Sent acceptance of Rs 12,000 at 120 days after sight, drawn by Mudhukar for the amount due to him.

D. Pandharinath honoured his acceptance of Rs 8,500 which was deposited into bank for collection.

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Solution

Books of Prabodhan

Journal Entry

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

2010

May 21

Veerendra

Dr.

17,500

A.

To Bills Receivable A/c

17,500

(Verendra’s acceptance cancelled for renewal)

May 21

Veerendra

Dr.

500

To Interest

500

(Interest charged on his account)

May 21

Bills Receivable A/c

Dr.

18,000

To Veerendra

18,000

(New bill has been drawn and accepted)

May 21

Radhabai

Dr.

1,585

B.

To Bank A/c

1,585

(Bill discounted with Bank dishonoured and noting charges of Rs 185 has been paid)

May 21

Mudhukar

Dr.

12,000

C.

To Bills Payable A/c

12,000

(Bill accepted)

May 21

Bank A/c

Dr.

8,500

D.

To Bill Sent for Collection A/c

8,500

(Bill honoured which was sent to bank for collection)

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C. Jethabhai honoured his acceptance of Rs 9,800 which was deposited into bank for collection and bank debited Rs 80 for bank charges.

D. Bank informed that Prajakta’s acceptance of Rs 4,000 which was discounted dishonoured, bank paid noting charge Rs 85. Renewed at her request for next 2 months with interest @ 18% p.a.

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A. On 3^rd October, 2012 Bankatlal informs Gajanan that Navnath’s acceptance of Rs 16,000 endorsed to him dishonoured and noting charges paid Rs 200.

B. On 9^th October, 2012 Vishwanath’s acceptance for 120 days of Rs 15,500 dated 24^th September, 2008 deposited into bank for collections.

C. On 11^th October 2012 Gajanan sold goods to Kartik for Rs 4,500 and received own acceptance from him, which was given to milind of Rs 4,500 and due for payment on this date.

D. 20^th October, 2012 recovered 40% of the amount due the private estate of Jyoti who declared as insolvent, against bill accepted by her for Rs 6,000 which was dishonoured on 29^th September, 2008.

E. On 21^st October, 2012 Gajanan renews his acceptance of Rs 7,500 to Pandurang by paying cheque Rs 3,500 and accepting new bill for 2 months for the balance plus interest @ 18% p.a.

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Journalise the following transactions on following dates in the books of Ankur.

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B. On 11^th April, 2011 Ankur renews his acceptance of Rs 7,400 to Amol by paying cash Rs 2,400 and accepting new bill for 2 months for the balance plus interest @ 15% p.a.

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On the due date of the respective bills Swapnil honoured 3 months acceptance for which bank debited Rs 50 as bank charges. On due date of 4 months acceptance Swapnil dishonoured for which Swapnali’s bank paid nothing charges Rs 100.

Pass the journal entries in the books of Swapnali and prepare Swapnil’s account in her ledger.

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On the due date Prakash Patil’s honoured his acceptance while Chandu Chaudhari unable to meet the payment for his acceptance. Magan Mahajan’s bank paid noting charges Rs 100.

Pass Journal entries in the books of Magan Mahajan and also prepare Prakash Patil’s and Magan Mahajan ledger account in the books of Chandu Chaudhari.

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Books of Prabodhan
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2010
May 21	Veerendra	Dr.		17,500
A.	To Bills Receivable A/c				17,500
	(Verendra’s acceptance cancelled for renewal)

May 21	Veerendra	Dr.		500
	To Interest				500
	(Interest charged on his account)

May 21	Bills Receivable A/c	Dr.		18,000
	To Veerendra				18,000
	(New bill has been drawn and accepted)

May 21	Radhabai	Dr.		1,585
B.	To Bank A/c				1,585
	(Bill discounted with Bank dishonoured and noting charges of Rs 185 has been paid)

May 21	Mudhukar	Dr.		12,000
C.	To Bills Payable A/c				12,000
	(Bill accepted)

May 21	Bank A/c	Dr.		8,500
D.	To Bill Sent for Collection A/c				8,500
	(Bill honoured which was sent to bank for collection)