Question

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.

Answer 1

Books of Swapnali
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2010
Aug.01	Swapnil	Dr.		20,000
	To Sales A/c				20,000
	(Goods sold to Swapnil on credit)
Aug.01	Bills Receivable A/c (Bill no 1)	Dr.		12,000
	Bills Receivable A/c (Bill no 2)	Dr.		8,000
	To Swapnil				20,000
	(Bill accepted by Swapnil)
Sept.01	Bill Sent for Collection A/c	Dr.		12,000
	To Bills Receivable A/c (Bill no 1)				12,000
	(Bill sent for collection to bank )
Sept.01	Bank A/c	Dr.		7,640
	Discount A/c	Dr.		360
	To Bills Receivable A/c (Bill no 2)				8,000
	(Bill discounted with bank at 18% per annum before 3 months)
Nov.04	Bank A/c	Dr.		12,000
	To Bill Sent for Collection A/c				12,000
	(Bill sent for collection honoured on maturity date)
Nov.04	Bank Charges A/c	Dr.		50
	To Bank A/c				50
	(Bank charges paid)
Dec.04	Swapnil	Dr.		8,100
	To Bank A/c				8,100
	(Discounted bill dishonoured on maturity date and noting charges paid by bank)

Swapnil’s Account
Dr.	Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2010					2010
Aug.01		Sales A/c		20,000	Aug.01	Bills Receivable A/c (Bill no 1)		12,000
Dec.04		Bank A/c		8,100	Aug.01	Bills Receivable A/c (Bill no 2)		8,000
					Dec.04	Balance c/d		8,100
				8,100				8,100