Question

Journalise the following transactions in the books of Bharti:-

a) Bank informed that Amit’s acceptance for ₹15,750 sent to bank for collection was honoured 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 ₹ 9,450 by endorsing Pravin’s acceptance to us ₹ 9,000.

Answer 1

In the books of Bharti Journal Entries
Date	Particulars	L.F	Debit (₹)	Credit (₹)
(a)	Bank A/c Dr		15,600
	Bank Charges A/c Dr.		150
	To Bill sent for collection A/c			15,750
	(Being the amount of Bill collected by bank and credited to our Bank A/c and Bank Charges debited)
(b) (i)	Nitin’s A/c Dr		22,200
	To Bills Receivable A/c			22,200
	(Being cancellation of bill)
(ii)	Nitin’s A/c Dr		500
	To Interest A/c			500
	(Being interest amount due)
(iii)	Cash A/c Dr		2,700
	To Nitin’s A/c			2,700
	(Being part payment along with interest received)
(iv)	Bills Receivable A/c Dr.		20,000
	To Nitin’s A/c			20,000
	(Being the acceptance received for balance amount due)
(c) (i)	Dhanshri’s A/c Dr.		17,500
	To Bills Receivable A/c			17,500
	(Being bill dishonoured for non-payment)
(ii)	Cash A/c Dr.		7,000
	Bad Debts A/c Dr		10,500
	To Dhanshri’s A/c			17,500
	(Being 40 % due amount received from Dhanshri, as being declared insolvent)
(d)	Bills Payable A/c Dr.		9,450
	To Discount A/c			450
	To Bills Receivable A/c			9,000
	(Being our acceptance Savita i.e. B. P. is cleared by endorsing Pravin’s acceptance i.e. B. R.)
			105600	105600