Page 295 - VIRANSH COACHING CLASSES

Mar. 12 Cash / Bank A/c ..................................................Dr. 13,500
Discount / Rebate A/c .........................................Dr. 500
To Bills Receivable A/c 14,000
(Being Atul’s acceptance retired and rebate allowed)

Alternate entry for Renewal (When interest is received in cash)
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. 6 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 Cash / Bank A/c ..................................................Dr. 10,800
To Atul’s A/c 10,000
To Interest A/c 800
(Being part payment and interest received)
Jan. Bills Receivable A/c ...........................................Dr. 14,000
To Atul’s A/c 14,000
(Being new bill drawn and acceptance received)
Mar. 12 Cash / Bank A/c ..................................................Dr. 13,500
Discount / Rebate A/c .........................................Dr. 500
To Bills Receivable A/c 14,000
(Being Atul’s acceptance retired and rebate allowed)

6. Nisha sold good to Asha worth ` 34,000, Asha paid ` 10,000 immediately and accepted the bill
for the balance ` 24,000 at 2 months. Nisha discounted the bill with Bank of Maharashtra after
one month at 15% p. a. The bill was dishonoured on the due date and Asha requested Nisha
to accept ` 4,000 and interest in cash on remaining amount at 11% p.a. for 3 months. Nisha
agreed and for the balance Asha accepted a new bill at 3 months. But Asha became insolvent
and only 40% could be recovered her estate.
Prepare Journal of Nisha.

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