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.

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Solution

Books of Gajanan

Journal Entry

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

2012

Oct.03

Navnath

Dr.

16,200

A.

To Bankatlal

16,200

(Navanth’s acceptance endorsed ro Bankatlal was dishonoured and noting charges incurred)

Oct.09

Bill Sent for Collection A/c

Dr.

15,500

B.

To Bills Receivable A/c

15,500

(Bill sent to bank for collection)

Oct.11

Kartik

Dr.

4,500

C.

To Sales A/c

4,500

(Sold goods to Kartik)

Bills Receivable A/c

Dr.

4,500

To Kartik

4,500

(Bill drawn and accepted)

Milind

Dr.

4,500

To Bills Receivable A/c

4,500

(Bill endorsed to Milind for amount due)

Oct.20

Cash/Bank A/c

Dr.

2,400

D.

Bad-Debts A/c

Dr.

3,600

To Joyti

6,000

(Joyti became insolvent and 40% of the amount recovered from his private estate)

Oct.21

Bills Payable A/c

Dr.

7,500

E.

To Pandurang

7,500

(Bill cancelled for renewal)

Interest A/c

Dr.

120

To Pandurang

120

(Interest charges due on Rs 4,000@ 18% per annum for 2 months)

Pandurang

Dr.

7,620

To Bills Payable A/c

4,120

To Bank A/c

3,500

(Cheque paid for Rs 3,500 and new bill has been accepted including interest charges)

Suggest Corrections

Similar questions

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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 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.

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 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 5^th September, 2010 Prakash Patil accepted a bill of Rs 16,000 drawn by Chandu Chaudhari for 3 months. This bill was drawn for amount which Prakash Patil owed to Chandu Chaudhari. On same date Chandu Chaudhari purchased goods from Magan Mahajan for Rs 20,000 for this Chandu Chaudhari endorsed Prakash Patil’s acceptance in favour of Magan Mahajan and accepted 2 months bill for the balance due. On 5^th October, 2010 Magan Mahajan discounted both the bill with his bank @ 12% p.a.

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 Gajanan
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2012
Oct.03	Navnath	Dr.		16,200
A.	To Bankatlal				16,200
	(Navanth’s acceptance endorsed ro Bankatlal was dishonoured and noting charges incurred)

Oct.09	Bill Sent for Collection A/c	Dr.		15,500
B.	To Bills Receivable A/c				15,500
	(Bill sent to bank for collection)

Oct.11	Kartik	Dr.		4,500
C.	To Sales A/c				4,500
	(Sold goods to Kartik)

	Bills Receivable A/c	Dr.		4,500
	To Kartik				4,500
	(Bill drawn and accepted)

	Milind	Dr.		4,500
	To Bills Receivable A/c				4,500
	(Bill endorsed to Milind for amount due)

Oct.20	Cash/Bank A/c	Dr.		2,400
D.	Bad-Debts A/c	Dr.		3,600
	To Joyti				6,000
	(Joyti became insolvent and 40% of the amount recovered from his private estate)

Oct.21	Bills Payable A/c	Dr.		7,500
E.	To Pandurang				7,500
	(Bill cancelled for renewal)

	Interest A/c	Dr.		120
	To Pandurang				120
	(Interest charges due on Rs 4,000@ 18% per annum for 2 months)

	Pandurang	Dr.		7,620
	To Bills Payable A/c				4,120
	To Bank A/c				3,500
	(Cheque paid for Rs 3,500 and new bill has been accepted including interest charges)