2 Journalise the following transactions in the books of S Swamy (a) Our acceptance to P - Accountancy - Bills of Exchange

Question

2 Journalise the following
transactions in the books of S Swamy
(a) Our acceptance to P Pandey for
rs 1500 renewed for 3 months on the condition that Rs 500 is paid
in cash immediately and the remaining balance to carry interest @
12%p a
(b) K pathak promissory note for Rs
1200 endorsed in favour of D gupta returned dishonoured D gupta
paid Rs 30 as noting charges S swamy pays D gupta by cheque and
accepts from K pathak another bill for the amount due along with
interest rs 80
(c) A bill payable accepted in
favour of k modi for Rs 4000 returned unpaid due to lack of
instructions to the bank Mr modi claims Rs 4050 (Rs 50 as noting
charges ) which is paid by cheque

Amit Chatterjee · Accepted Answer

Books of Swamy

Journal

Date

Particulars

L F

Debit

Amount

Credit

Amount

(a)

(b)

(c)

Bills Payable
A/c

To P Pandey
(Bill Cancelled)

P Pandey
To Cash A/c
(Paid to P
Pandey)

Interest A/c

To P Pandey
(Interest due to P
Pandey)

P Pandey

To Bills Payable A/c
(P
Pandeyâ€™s Bill accepted)

B/R Receivable
A/c

To K Pathak
(Promissory Note
Received from K Pathak)

D Gupta

To Bills Receivable A/c
(K
Pathakâ€™s Promissory Note endorsed in
favour of D
Gupta)

K Pathak

To D Gupta
(K Pathak Promissory
Note dishonoured and
D Gupta paid Rs 30
Noting Charges)

D Gupta

To Bank A/c
(Paid to D Gupta for
the amount of Promissory Note dishonoured and Noting Charges)

K Pathak

To Interest A/c
(Interest due from K
Pathak for Promissory Note
dishonoured)

Bills Receivable
A/c

To K Pathak
(K
Pathakâ€™s acceptance received)

K Modi

To Bills Payable A/c
(K
Modiâ€™s Bill Accepted)

Bills Payable
A/c
Noting Charges
A/c

To K Modi
(Bill
dishonoured)

Dr

1,500

500

30

1,030

1,200

1,230

80

1,310

4,000

50