Question

Seema purchased goods from Roma on credit on 1 st August, 2019 fo ₹ 37,000, Seema accepts bill for 2 months drawn by Roma for the same amount on the same day Roma discounts the bill with the bank for ₹ 36,200 on 3rd August 2019. On the due date the bill is dishonoured and Noting Charges of ₹ 160 is paid by the bank. Seema pays ₹ 19,000 and Noting Charges in cash immediately. Anew bill is drawn by Roma for the balance including interest ₹ 650 for 2 months, which is accepted by Seema. The new bill is retired one month before the due date at a rebate of ₹ 300

Give Journal Entries in the Books of Seema and prepare Seems’s Account in the books of Roma.

Answer 1

In the books of Seema Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
2019 Aug. 1	Purchase A/c Dr		37,000
	To Roma’s A/c			37,000
	(Being goods purchased on credit)
2019 Aug. 1	Roma’s A/c Dr		37,000
	To Bills Payable A/c			37,000
	(Being our acceptance is given)
Oct. 4	Bills Payable A/c Dr		37,000
	To Roma’s A/c			37,000
	(Being our acceptance dishonoured)
Oct. 4	Noting Charges A/c Dr		160
	To Roma’s A/c			160
	(Being noting charges due to Roma)
Oct. 4	Roma’s A/c Dr		19,160
	To Cash A/c			19,160
	(Being paid part payment and noting charges in cash)
Oct. 4	Interest A/c Dr		650
	To Roma’s A/c			650
	(Being interest amount due)
Oct. 4	Roma’s A/c Dr		18,650
	To Bills Payable A/c			18,650
	(Being remaining due amount with interest, our acceptance is given)
Nov. 7	Bills Payable A/c Dr		18,650
	To Cash A/c			18,350
	To Rebate A/c			300
	(Being before one month of due date, Bills payable amount paid at a rebate of L 300)
			168270	168270

 

Dr	In the books of Roma Seema’s Account								Cr
Date		Particulars	J.F	Amount (₹)	Date	Particulars	J.F	Amount (₹)
2019 Aug. 1		To Sales A/c		37,000	2019 Aug. 1	By Bills Receivable A/c		37,000
Oct. 4		To Bank A/c (Dishonour & Noting Charges)		37,160	2019 Aug 4	By Cash A/c		19,160
Oct. 4		To Interest A/c		650	Nov. 7	By Bills Receivable A/c (New)		18,650
				74,810				74,810