a) Bank informed that Amit’s acceptance for ₹15,750 sent to bank for collection was honored and bank charges debited were ₹150. b) Nitin renewed his acceptance for ₹22,200 by paying ₹2,200 in cash along with interest on balance amount at 10% and accepted a fresh bill for the balance for 3 months. c) Dhanshri who had accepted Bharti’s bill for ₹17,500 was declared insolvent and only 40% of the amount due could be recovered from his estate. d) Discharged our acceptance to Savita for ₹9,45 by endorsing Pravin’s acceptance to us ₹9,000. Journalise the following transactions in the books of Bharati: -




Journalize the following transactions in the books of Bharati: - 
a) Bank informed that Amit’s acceptance for ₹15,750 sent to bank for collection was honored and bank charges debited were ₹150. 

b) Nitin renewed his acceptance for ₹22,200 by paying ₹2,200 in cash along with interest on balance amount at 10% and accepted a fresh bill for the balance for 3 months. 

c) Dhanshri who had accepted Bharti’s bill for ₹17,500 was declared insolvent and only 40% of the amount due could be recovered from his estate. 

d) Discharged our acceptance to Savita for ₹9,45 by endorsing Pravin’s acceptance to us ₹9,000. 

 

Solution: 
Journal Entry 
In the Books of Bharti 

Date 

Particulars 

J.F 

Debit ₹ 

Credit ₹ 

a) 

Bank A/c Dr. 

Bank Charges A/c Dr. 

To Bill Sent for Collection A/c 

[Being Amit acceptance sent to bank was honored and bank charges debited] 

 

15,600 

150 

 

 

15,750 

b) 

1 

Nitin A/c Dr. 

To Bills Receivable A/c 

[Being bill got canceled] 

 

22,000 

 

22,000 

2  

Niti A/c dr. 

To Interest A/c 

[Being interest amount due] 

 

500 

 

500 

3 

Cash A/c Dr. 

To Nitin A/c  

[Being Nitin paid part amount along with interest] 

 

2,700 

 

27,00 




4 

Bills Receivable A/c Dr. 

To Nitin A/c  

[Being acceptance received for new bill] 

 

20,000 

 

20,000 

c) 

1 

Dhanshri’s A/c Dr. 

To Bills Received A/c 

[Being bill dishonored] 

 

17,500 

 

17,500 

2 

Cash A/c Dr. 

Bad Debts A/c Dr. 

To Dhanshri A/c 

[Being 40% of the amount could be recovered] 

 

7,000 

10,500 

 

 

 

17,500 

d) 

Bills Payable A/c Dr. 

To Discount A/c 

To Bills Receivable A/c 

[Being discharged our acceptance to savita by endorsing Pravin acceptance] 

 

9,450 

 

450 

9,000

Comments

Post a Comment

Excitement surges as Prime Minister Narendra Modi inaugurates Atal Setu, India's longest sea-bridge, with an enticing announcement – toll rates set at just Rs 250 for a one-way trip and Rs 375 for a round trip in the first year! PM Modi's symbolic journey from INS Shikara in Colaba marked the grand commencement. In Navi Mumbai, he dedicated three pivotal infrastructure projects, laying the foundation stone for another. This Rs 21,200 crore investment plan, unfolding over five years, not only enhances Atal Setu's accessibility but also integrates the city's waterfronts with tunnels and flyovers.

Student Reviews

Very helpful for getting a solution. Thank you!

I like all your posts. You have done really good work. Thank you for the information you provide; it helped me a lot.

The answers are so perfect and proper 🌝

Nice explanation in full detail is very helpful.

It's very easy to learn.

Privacy Statement: We respect student privacy and do not share any personal information. Reviews are voluntarily provided to showcase genuine appreciation for our content.