Question

Bina draws a bill on Tina for ₹ 24,000 on 6th Oct. 2022 for 3 months. Tina accepts the bill on the same date. Bina sends the bill to Bank for collection on 20th Oct. 2022. Before due date, Tina finds herself unable to make the payment of bill and request Bina to renew it. Bina agree to the proposal on condition that Tina should pay ₹ 10,000 in cash along with interest ₹ 800 and accept a new bill for 2 months for the balance. Tina retired the bill on 12th Jan. 2023 by paying ₹ 13,500.

Answer 1

In the books of Bina Journal
Date	Particulars	L.F.	Debit Amount (₹)	Credit Amount (₹)
2022
Oct. 6	Bills Receivable A/c   ....Dr.		24,000	-
	To Tina A/c		-	24,000
	(Being bill drawn and acceptance received)
Oct. 20	Bill sent for collection A/c   ....Dr.		24,000	-
	To Bills Receivable A/c		-	24,000
	(Being Tina’s acceptance sent to bank for collection)
2023
Jan. 9	Tina’s A/c   ....Dr.		24,000	-
	To Bill sent for collection A/c		-	24,000
	(Being Tina’s acceptance cancelled To Tina’s A/cfor renewal)
Jan. 9	Tina’s A/c   ....Dr.		800	-
	To Interest A/c		-	800
	(Being interest due on balance amount to be paid)
Jan. 9	Cash/Bank A/c   ....Dr.		10,800	-
	To Tina’s A/c		-	10,800
	(Being part payment received along with interest)
Jan. 9	Bills Receivable A/c   ....Dr.		14,000	-
	To Tina’s A/c		-	14,000
	(Being new bill drawn and acceptance received)
Jan. 12	Cash/Bank A/c   ....Dr.		13,500
	Discount/Rebate A/c   ....Dr.		500
	To Bills Receivable A/c			14,000
	(Being Tina’s acceptance retired and rebate allowed)
	Total		1,11,600	1,11,600