Question

Journalise 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 Ramlal for ₹ 5,000.

b) Vikram’s acceptance to Narendra ₹ 6,000 retired one month before the due 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 dishonoured and Noting Charges paid by bank ₹ 140.

Answer 1

In the books of Narendra Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(a)	Bills Payable A/c Dr		9,000
	To Cash A/c			4,000
	To Bills Receivable A/c			5,000
	(Being Upendra’s dues cleared by paying cash and endorsing a bill)
(b)	Cash A/c Dr		5,940
	Rebate A/c Dr		60
	To Bills Receivable A/c			6,000
	(Being Vikram’s acceptance retired with rebate)
(c) (i)	Dilip’s A/c Dr		12,000
	To Bills Receivable A/c			12,000
	(Being cancellation of bill)
(ii)	Cash A/c Dr		4,000
	To Dilip’s A/c			4,000
	(Being cash received)
(iii)	Dilip’s A/c Dr		240
	To Interest A/c			240
	(Being interest due)
(iv)	Bills Receivable A/c Dr.		8,240
	To Dilip’s A/c			8,240
	(Being fresh bill accepted by Dilip for remaining amount plus interest)
(d)	Kartik’s A/c Dr.		13,140
	To Bank A/c			13,140
	(Being Kartik’s acceptance dishonoured and bank paid noting charges)
			52620	52620