Dhruv sold goods to Kunal for 20,000 on 14 April, 2016 He drew a bil on Kunal for the amount - Accountancy - Bills of Exchange

Question

Dhruv sold goods to Kunal for 20,000 on 14 April, 2016 He drew a
bil on Kunal for the amount
due payable after three months Kunal accepted the bill and returned
it to Dhruv Dhruv
discounted the bill on 4 May 2016 with his bank e 12% pa

On the due date, the bill was dishonoured and bank paid 100 as
noting charges Kunal requested
Dhruv to draw a new bill for 3 months, Dhruv agreed to Kunal's
proposal, provided Kunal pays
interest 10% pa along with noting charges in cash On the due date
of second bill Kunal
showed his inability to meet the bill and requested Dhruv to accept
10,000 in cash and drewa
third bill for the balance along with 300 towards Interest for 2
months, Dhruv agreed The third
bill was met on due date

Pass necessary journal entries in the books of Dhruv

Decoder_6 · Accepted Answer

Dear Student

Journal (In the books of
Dhruv)

Date

Particulars

L
F

Debit

Credit

14/04/2016

Kunal
A/c

Dr

20000

To Sales
A/c

20000

(Being goods
sold)

14/04/2016

Bills Receivable
A/c

Dr

20000

To Kunal
A/c

20000

(Being bills for 3 months
accepted)

4/5/2016

Bank
A/c

Dr

19600

Discount
A/c

Dr

400

To Bills Receivable
A/c

20000

(Being bills discounted from
bank)

17/07/2016

Kunal
A/c

Dr

20100

To Bank
A/c

20100

(Being bill dishonoured on due
date and charges paid to
bank)

17/07/2016
Kunal
A/c

Dr

2000

To Interest
A/c

2000

(Being interest due to be
received)

17/07/2016

Bills Receivable
A/c

Dr

22000

Cash
A/c

Dr

100

To Kunal
A/c

22100

(being new bill drawn against
Kunal)

20/10/2016

Kunal
A/c

Dr

22000

To Bills Receivable
A/c

22000

(Being bill dishonoured on due
date)

20/10/16
Kunal
A/c

Dr

300

To Interest
A/c

300

(Being interest due to be
received)

20/10/16

Bills Receivable
A/c

Dr

12300

Cash
A/c

Dr

10000

To Kunal
A/c

22300

(being new bill drawn against
Kunal)

23/12/16

Bank
A/c

Dr

12300

To Bills Receivable
A/c

12300

(Being bill duly
met)

Regards

Journal (In the books of Dhruv)
Date	Particulars		L.F.	Debit	Credit
14/04/2016	Kunal A/c	Dr.		20000
	To Sales A/c				20000
	(Being goods sold)
14/04/2016	Bills Receivable A/c	Dr.		20000
	To Kunal A/c				20000
	(Being bills for 3 months accepted)
4/5/2016	Bank A/c	Dr.		19600
	Discount A/c	Dr.		400
	To Bills Receivable A/c				20000
	(Being bills discounted from bank)
17/07/2016	Kunal A/c	Dr.		20100
	To Bank A/c				20100
	(Being bill dishonoured on due date and charges paid to bank)

17/07/2016	Kunal A/c	Dr.		2000
	To Interest A/c				2000
	(Being interest due to be received)
17/07/2016	Bills Receivable A/c	Dr.		22000
	Cash A/c	Dr.		100
	To Kunal A/c				22100
	(being new bill drawn against Kunal)
20/10/2016	Kunal A/c	Dr.		22000
	To Bills Receivable A/c				22000
	(Being bill dishonoured on due date)
20/10/16	Kunal A/c	Dr.		300
	To Interest A/c				300
	(Being interest due to be received)
20/10/16	Bills Receivable A/c	Dr.		12300
	Cash A/c	Dr.		10000
	To Kunal A/c				22300
	(being new bill drawn against Kunal)
23/12/16	Bank A/c	Dr.		12300
	To Bills Receivable A/c				12300
	(Being bill duly met)