Q.3. Journalise the following transaction in the books of Nilesh.
(a) Naresh informs Nilesh that Snajay’s acceptance for `. 8,000 endorsed to Naresh has been dishonoured. Noting charges `. 200.
(b) Sujit renews his acceptance to Nilesh for `. 4,800 by paying `.1,600 in cash and accepting a new bill for the balance plus interest for 3 months @12% p.a.
(c) Prakash’s acceptance to Nilesh for `.24,000 retired one month before its due date at a discount of 12% p.a.
(d) Bank informs Nilesh, the dishonour of Prashant’s acceptance for `. 8,000, discounted with Bank. Noting charges `.160. (12)
Journal of Nilesh
Date | Particulars | LF | Debit (`.) | Credit (`.) |
1. | Sanjay A/c…………………………..Dr. To Naresh A/c (Being endorsed bill dishonoured and noting charges paid) | 8,200 | 8,200 | |
2. | Sujit A/c………………………………Dr. To Bills Receivable A/c (Being Bills cancelled) | 4,800 | 4,800 | |
3. | Sujit A/c………………………………Dr. To Interest A/c (Being interest receivable) | 96 | 96 | |
4. | Cash A/c……………………………..Dr. To Sujit A/c (Being part payment received) | 1,600 | 1,600 | |
5. | Bills Receivable A/c………………..Dr. To Sujit A/c (Being new bill drawn and accepted due after 3 months) | 3,296 | 3,296 | |
6. | Cash A/c………………………………Dr. Discount A/c…………………………Dr. To Bills Receivable A/c (Being Bill Retired) | 23,760 240 | 24,000 | |
7. | Prashant A/c…………………………Dr. To Bank A/c (Being discounted bill dishonorued and noting charges paid) | 8,160 | 8,160 | |