PRACTICAL PROBLEMS
Sushant owes Surekha Rs 1,25,000 Surekha draws a bill for Rs 1,00,000 on Sushant for 4 months period and received the cheque for the balance. The bill is duly accepted and returned by Sushant. On the same date Surekha endorsed Sushant’s acceptance to Suresh.
On the due date Suresh informed Surekha that Sushant dishonoured his acceptance and Rs 3,175 paid as noting charges Surekha then drew a new bill for 3 month on Sushant including noting charges and interest Rs 4,000. On the due date bill was duly honoured by Sushant.
Write Journal entries in the books of Surekha and prepare Surekha’s account in the books of Sushant.
Books of Surekha


Journal Entry


Date

Particulars

L.F.

Debit Amount
Rs

Credit Amount
Rs









Bank A/c

Dr.


25,000



Bills Receivable A/c

Dr.


1,00,000



To Sushant




1,25,000


(Bill drawn and accepted and rest of the amount received in Cash)












Suresh

Dr.


1,00,000



To Bills Receivable A/c




1,00,000


(Bill endorsed to Suresh, a creditor)












Sushant

Dr.


1,03,175



To Suresh




1,03,175


(Bill endorsed to Suresh, dishonoured and noting charges of Rs 3,175 paid)












Bills Receivable A/c

Dr.


1,07,175



To Sushant




1,03,175


To Interest A/c




4,000


(New bill drawn and accepted including interest of Rs 4,000)












Cash/Bank A/c

Dr.


1,07,175



To Bills Receivable A/c




1,07,175


(Bill honoured on due date)











In the Books of Sushant 

Surekha’s Account 

Dr. 
Cr. 

Date 
Particulars 
J.F. 
Amount (Rs) 
Date 
Particulars 
J.F. 
Amount (Rs) 











Bank A/c 

25,000 

Balance b/d 

1,25,000 


Bills Payable A/c 

1,00,000 

Bills Payable A/c 

1,00,000 


Bills Payable 

1,07,175 

Noting Charges A/c 

3,175 






Interest A/c 

4,000 




2,32,175 



2,32,175 








