Page 293 - VIRANSH COACHING CLASSES

4. Sneha receives Magha’s acceptance for ` 15,000. Before due date of the bill Megha approaches
Sneha with a request to accept ` 5,000 and draw a fresh bill on her for the balance for 3 months
including interest at 8% p.a. Sneha agrees and draws a fresh bill which was duly accepted by
Megha.
On the due date Megha meets the bill.
Give journal entires in the books of Sneha and prepare Sneha’s account in the books of
Megha.
In the books of Sneha
Journal
Date Particulars L. F. Debit Credit
Amount ` Amount `
1. Bills Receivable A/c .......................................... Dr. 15,000
To Megha’s A/c 15,000
(Being bill drawn and acceptance received)
2. Megha’s A/c ....................................................... Dr. 15,000
To Bills Receivable A/c 15,000
(Being Megha’s acceptance cancelled for renewal)
3. Megha’s A/c ....................................................... Dr. 200
To Interest A/c 200
(Being interest due on balance)
4. Cash / Bank A/c ..................................................Dr. 15,000
To Megha’s A/c 5,000
(Being part payment received)
5. Bills Receivable A/c ...........................................Dr. 10,200
To Megha’s A/c 10,200
(Being new bill drawn along with interest and
acceptance received)
6. Cash / Bank A/c ..................................................Dr. 10,200
To Bills Reveivable A/c 10,200
(Being new bill duly honoured on the due date)

In the books of Megha
Sneha’s A/C
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
(`) (`)
To Bills Payable A/c 15,000 By Balance b/d 15,000
To Cash/Bank A/c 5,000 By Bills Payable A/c 15,000
To Bills Payable A/c 10,200 By Interest A/c 200

30,200 30,200

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