a) Narendra retires his acceptance to Upendra by paying ₹4,000 in cash and endorsing a bill accepted by Ramalal for ₹5,000. b) Vikram’s acceptance to Narendra for ₹6,000 retired one month before the date at rebate of 12% p.a. c) Dilip renews his acceptance to Narendra for ₹12,000 by paying ₹4,000 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months. d) Bank informed Narendra that, Kartik’s acceptance for ₹13,000 to Narendra, discounted with the bank was dishonored and Nothing Charges paid by bank ₹140. Journalise the following transactions in the books of Narendra: -




Journalize the following transactions in the books of Narendra: - 
a) Narendra retires his acceptance to Upendra by paying ₹4,000 in cash and endorsing a bill accepted by Ramalal for ₹5,000. 

b) Vikram’s acceptance to Narendra for ₹6,000 retired one month before the date at rebate of 12% p.a. 

c) Dilip renews his acceptance to Narendra for ₹12,000 by paying ₹4,000 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months. 

d) Bank informed Narendra that, Kartik’s acceptance for ₹13,000 to Narendra, discounted with the bank was dishonored and Nothing Charges paid by bank ₹140. 

 

Solution: 
Journal Entries 
In the Books of Narendra. 

Date  

Particulars 

J.F 

Debit ₹ 

Credit ₹ 

a) 

Bills Payable A/c Dr. 

To Cash A/c 

To Bills Receivable  

[Being Upendra’s paid the bill and endorsed a bill]  

 

9,000 

 

4,000 

5,000 

b) 

Cash A/c Dr. 

Rebate A/c Dr. 

To Bills Receivable A/c 

[Being Vikram accepted retired with rebate] 

 

5,940 

60 

 

 

6,000 

c)  

1 

Dilip A/c Dr. 

To Bills Receivable A/c 

[Being bill canceled] 

 

12,000 

 

12,000 





2 

Cash A/c Dr. 

To Dilip A/c 

[Being Dilip paid cash] 

 

4,000 

 

4,000 

3 

Dilip A/c Dr. 

To Interest A/c 

[Being interest at 12% for 3 months due] 

 

240 

 

 

240 

4 

Bills Receivable A/c Dr. 

To Dilip A/c 

[Being drawn a fresh bill for the balance] 

 

8,240 

 

8,240 

d) 

Kartik A/c Dr.  

To Bank A/c 

[Being bill accepted by Kartik was dihonored and Nothing Charges paid by Bank] 

 

13,140 

 

13,140 

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