Page 294 - VIRANSH COACHING CLASSES

Working Note :-
Calculation of interest and amount of new bill.
Amount of old bill = ` 15,000

Part Payment Balance (New Bill)
` 5,000 ` 10,000

` (+) 200
` 10,200
8 3
Interest on Balance = 10,000 × 100 × 12

= ` 200 (added to new bill)

5. Amol draws a bill on Atul for ` 24,000 on 6 Oct. 2019 for 3 months. Atul accepts the bill on the
th
same date. Amol sends the bill to Bank for collection on 20 Oct. 2019. Before due date Atul
th
finds himself unable to make the payment of bill and request Amol to renew it. Amol agrees
to the proposal on condition that Atul should pay ` 10,000 in cash along with interest ` 800 and
accept a new bill for 2 months for the balance. Atul retired the bill on 12 Jan. 2020 by paying
th
` 13,500.
Give journal entires in the books of Amol.
In the books of Amol
Journal

Date Particulars L. F. Debit Credit
Amount ` Amount `
2019 Bills Receivable A/c ...........................................Dr. 24,000
Oct. 6 To Atul’s 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 Atul’s acceptance sent to bank for collection)
2020 Atul’s A/c ............................................................Dr. 24,000
Jan. 9 To Bill sent for collection A/c 24,000
(Being Atul’s acceptance cancelled for renewal)
Jan. 9 Atul’s A/c 800
To Interest A/c 800
(Being interest due)
Jan. 9 Cash / Bank A/c ..................................................Dr. 10,800
To Atul’s A/c 10,800
(Being part payment received along with interest)
Jan. 9 Bills Reveivable A/c ...........................................Dr. 14,000
To Atul’s A/c 14,000
(Being new bill drawn and acceptance received)

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