PRACTICAL PROBLEMS

Journalise the following bill transactions as on 31^st July, 2011 in the books of Pratapsing.

A. Renewed Vinyak’s acceptance of Rs 6,000 due on 31^st July, 2011 by accepting cash Rs 2,000 and drawing bill for the balance with interest @ 18% p.a. for 3 months.

B. Accepted a bill of Rs 5,000 at 3 months at sight, drawn by Arvind for the amount due to him Rs 6,000 and balance paid by cheque.

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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Solution

Books of Pratapsing

Journal Entry

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

2011

Jul.31

Vinyak

Dr.

6,000

A.

To Bills Receivable A/c

6,000

(Bill cancelled for renewal of acceptance)

Vinyak

Dr.

180

To Interest A/c

180

(Interest charged on his account for Rs 4,000 @ 18% per annum for 3 months)

Cash A/c

Dr.

2,000

Bills Receivable A/c

Dr.

4,180

To Vinyak

6,180

(Cash received and new bill has been drawn and accepted)

Jul.31

B.

Arvind

Dr.

6,000

To Bank A/c

1,000

To Bills Receivable A/c

5,000

(Bill of Rs 5,000 accepted and rest of the amount paid by cheque)

Jul.31

Bank A/c

Dr.

9,800

C.

To Bill sent for Collection A/c

9,800

(Bill sent for collection, honoured on due date)

Bank Charges A/c

Dr.

80

To Bank A/c

80

(Bank Charges paid)

Jul.31

D.

Prajakta

Dr.

4,085

To Bank A/c

4,085

(Bill discounted with Bank, dishonoured and noting charges of Rs 85 paid)

Parjakta

Dr.

123

To Interest A/c

123

(Interest charges due on Rs 4,085 @ 18% per annum for 2 months)

Bills Receivable A/c

Dr.

4,208

To Prajkta

4,208

(New Bill has been drawn and accepted)

Suggest Corrections

Similar questions

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.

PRACTICAL PROBLEMS

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

A. On 1^st April, 2011 Kiran informs Ankur that Kajol’s acceptance of Rs 8,000 endorsed to him dishonoured and noting charges paid Rs 250.

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.

C. On 15^th April, 2011 Nilima retired her acceptance to Ankur of Rs 5,700 by paying cash Rs 5,300.

D. On 21^st April, 2011 recovered Rs 50% of the amount due, from the private estate of Liladhar who declared as insolvent, against his bill of Rs 3,800 which was dishonoured by him on 29^th December, 2010 and noting charges paid Rs 80.

PRACTICAL PROBLEMS

Journalise the following transactions on following dates in the books of Gajanan

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.

PRACTICAL PROBLEMS

Journalise the following bill transactions in the books of Gopal as on 14^th August, 2010.

1. Shruti’s acceptance to Gopal Rs 4,500 retired one month before due date at rebate 10% p.a.

2. Discounted 3 months acceptance of Chandrakant for Rs 3,500 with bank @ 12% p.a.

3. Received cheque Rs 2,000 and 2 months acceptance drawn on Sushama for Rs 10,000 for the balance due on her account.

4. Endorsed Shantaram’s acceptance at 2 months of Rs 5,000 in favour of Balchandra and paid cash Rs 2,500 in full settlement of this account Rs 7,800.

5. Sold goods of Rs 13,500 on credit to Nanda. Drew 2 months bill on her. Which is duly accepted and returned by her.

PRACTICAL PROBLEMS

On 1^st August, 2010 Swapnali sold goods to Swapnil on credit for Rs 20,000. And drew two bills of 60% and 40% of the amount due from Swapnil for 3 and 4 months period respectively. Swapnil accepted and return it to Swapnali immediately. On 1^st September 2010 Swapnali send 3 months acceptance to her bank for collection and discounted 4 months acceptance with her bank @ 18% p.a.

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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Books of Pratapsing
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2011
Jul.31	Vinyak	Dr.		6,000
A.	To Bills Receivable A/c				6,000
	(Bill cancelled for renewal of acceptance)

	Vinyak	Dr.		180
	To Interest A/c				180
	(Interest charged on his account for Rs 4,000 @ 18% per annum for 3 months)

	Cash A/c	Dr.		2,000
	Bills Receivable A/c	Dr.		4,180
	To Vinyak				6,180
	(Cash received and new bill has been drawn and accepted)

Jul.31
B.	Arvind	Dr.		6,000
	To Bank A/c				1,000
	To Bills Receivable A/c				5,000
	(Bill of Rs 5,000 accepted and rest of the amount paid by cheque)

Jul.31	Bank A/c	Dr.		9,800
C.	To Bill sent for Collection A/c				9,800
	(Bill sent for collection, honoured on due date)

	Bank Charges A/c	Dr.		80
	To Bank A/c				80
	(Bank Charges paid)

Jul.31
D.	Prajakta	Dr.		4,085
	To Bank A/c				4,085
	(Bill discounted with Bank, dishonoured and noting charges of Rs 85 paid)

	Parjakta	Dr.		123
	To Interest A/c				123
	(Interest charges due on Rs 4,085 @ 18% per annum for 2 months)

	Bills Receivable A/c	Dr.		4,208
	To Prajkta				4,208
	(New Bill has been drawn and accepted)