Uday purchased goods from Shankar on Credit for ₹35,0000 at 10% Trade Discount. Uday paid ₹1,500 immediately and for the balance accepted a bill for 3 months. Before due date Uday approached Shankar with a request to renew the bill. Shankar agreed but with condition that Uday should accept a new bill for 3 months including interest at 12% p.a. Give Journal Entries in the Books of Shankar.
Give Journal Entries in the Books of Shankar.
Journal Entry
In the Books of Shankar.
Date | Particulars | J.F | Debit ₹ | Credit ₹ |
1 | Uday A/c Dr. To Sales A/c [Being Goods sold to Uday on credit @10% Trade Discount] |
| 31,500 |
31,500 |
2 | Cash A/c Dr. To Uday A/c [Being Received cash from Uday] |
| 30,000 |
30,000 |
3 | Bills Receivable A/c Dr. To Uday A/c [Being the bill is drawn and accepted] |
| 30,000 |
30,000 |
4 | Uday A/c Dr. To Bills Receivable A/c [Being Uday request to cancel bill] |
| 30,000 |
30,000 |
5 | Uday A/c Dr. To Interest A/c [Being interest due to Uday] |
| 900 |
900 |
6 | New Bill receivable A/c Dr. To Uday A/c [Being the new bill drawn and accepted] |
| 30,900 |
30,900 |
|
|
|
|
|
Calculation:
Interest = 30,000*3/12*12/100 = 900
Comments
Post a Comment