Seema purchased goods from Roma on credit on 1st August, 2019 for ₹37,000 Seema accepts bill for 2 months drawn by Roma for the same amount on the same day Roma discount the bill with the Bank for ₹36,20 on 3rd August 2019. On the due date the bill is dishonored and Nothing Charges of ₹160 is paid by the bank. Seema pays ₹19,000 and Nothing Charges in cash immediately. A new bill is drawn by Roma for the balance including interest 5650 for 2 months., which is accepted by Seema. The Bill is retired one month before the due date at a rebate of ₹300. Give Journal Entries in the books of Seema and prepare Seema’s Account in the Books of Roma.




 
Give Journal Entries in the books of Seema and prepare Seema’s Account in the Books of Roma. 

 
Solution: 
Journal Entry 

In the Books of Seema  

Date  

Particulars 

L/F 

Debit ₹ 

Credit ₹ 

2019 

 

 

 

 

1 Aug. 

Purchase A/c Dr. 

To Roma A/c 

[Being Roma purchased goods on credit] 

 

37,000 

 

37,000 

1 Aug. 

Roma A/c Dr. 

To Bills Payable A/c 

[Being acceptance has given] 

 

37,000 

 

37,000 

4 Oct. 

Bill Payable A/c Dr. 

To Roma A/c 

[Being bill get dishonored] 

 

37,000 

 

37,000 

4 Oct.  

Noting Charges A/c Dr. 

To Roma A/c  

[Being nothing charges due to Roma] 

 

160 

 

160 



4 Oct. 

Roma A/c Dr. 

To Cash A/c 

[Being Seema paid part payment and Nothing Charges] 

 

19,160 

 

19,160 

4 Oct. 

Interest A/c Dr. 

To Roma A/c 

[Being include interest amount for 2 months] 

 

650 

 

650 

4 Oct. 

Roma A/c Dr. 

To Bills Receivable A/c 

[Being a new bill accepted] 

 

18,650 

 

18,650 

7 Nov. 

Bills Payable A/c Dr. 

To Cash A/c 

To Rebate A/c 

[Being one month before the due date Seema retired] 

 

18,650 

 

18,350 

300 

 

 

 

 

 

 


Ledger Account 

In the Books of Roma 

Date 

Particulars 

J.F 

Amount 

Date 

Particulars 

J.F 

Amount 

2019 

 

 

 

2019 

 

 

 

1 Aug. 

To Sales A/c 

 

37,000 

1 Aug. 

By Bills Receivable 

 

37,000 

4 Oct. 

To Bank A/c 

 

37,160 

4 Aug. 

By Cash A/c 

 

19,160 

4 Oct.  

To Interest A/c 

 

650 

7 Nov.  

By Bills Receivable  

 

18,650 

 

 

 

 

 

 

 

 

 

 

 

74,810 

 

 

 

74,810 

 

 

 

 

 

 

 

 

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