Journalize the following transactions in the books of Abhishek: -
a) Siddhant informs Abhishek that Vineet’s acceptance for ₹23,000 endorsed to Siddhant has been dishonored. Nothing Charges amounted to ₹430.
b)Kajal renews her acceptance to Abhishek for ₹39,000 by paying ₹3,000 in Cash and accepting a fresh bill for the balance along with interest at 11.5% p.a. for 3 months.
c) Radhika retired her acceptance to Abhishek for ₹23,000 by paying ₹22,250 by cheque.
d) Abhishek sent a bill of Subodh for ₹9,000 to bank for collection. Bank informed that the bill has been dishonored by Subodh.
Journal Entries
In the Books of Abhishek
Date | Particulars | J.F | Debit ₹ | Credit ₹ |
a) | Vineet’s A/c Dr. To Siddhant’s A/c [Being Vineet acceptance endorsed to Siddhant dishonored and Nothing charges] |
| 23,430 |
23,430 |
b) 1. | Kajal A/c Dr. To Bills Receivable A/c [Being bill got cancel] |
| 39,000 |
39,000 |
2. | Cash A/c Dr. To Kajal [Being cash received from Kajal] |
| 3,000 |
3,000 |
3. | Kajal A/c Dr. To Interest A/c [Being interest amount due] |
| 1,035 |
1,035 |
|
4. | New Bill Receivable A/c Dr. To Kajal A/c [Being new bill drawn and acceptance received] |
| 37,035 |
37,035 |
c) | Bank A/c Dr. Rebate A/c Dr. To Bills Receivable A/c [Being Radhika retired her acceptance] |
| 22,250 750 |
23,000 |
d) 1 | Bills Sent for collection A/c Dr. To Bills Receivable A/c [Being Bill send for collection] |
| 9,000 |
9,000 |
2 | Subodh’s A/c Dr. To Bill Sent for collection A/c [Being Subodh’s acceptance dishonored] |
| 9,000 |
9,000 |