Plz answer the questions 15 and 16 !!! Q 15 Aashirwad draws on Aakarshak a Bill of exchange for - Accountancy - Bills of Exchange

Question

Plz answer the questions 15 and 16 !!!
Q 15 Aashirwad draws on Aakarshak a Bill of exchange for 3 months
for Rs 10,000 which Aakarshak accepts on January 01, 2006 ,
Ashirwad with the request that the bill be renewed for a further
period of 3 months at 18 per cent per annum interest Aakarshak
Record journal entries in the book of Aashirwa, assuming that the
second bill is duly met

Q 16 Bansal Traders allow a trade discount of 10% on the list price
of the goods purchase from them Mohan traders, who runs a retails
shop made the following purchases from Bansal
traders

Date
Amount (Rs )

Dec 21,2005
1,000

Dec 26, ,2005
1,200

Dec 18, ,2005
2,000

Dec 31, ,2005
5,000

For all the purchases Mohan Traders drew promissory
note i favour of Bansal Traders payable after 30 days The
promissory note for the sale of Dec 21, ,2005â€‹
was retained by Bansal Traders with them till the date of its
maturity The promissory note drawn on 26 12 2005 was discounted by
Bansal Traders from thier bank at 12% p a The promissory note drawn
on Dec, 28,2005 was endores by Bansal Traders in favvour of their
creditor Dream Soaps in full settlement of a purchase amounting to
Rs 1,900 on 25 1 2006 Bansal Traders sent the promissory note drawn
on Dec 31, 2005 to their bank for collection All the promissory
notes were met by Mohan Traders Record the necessary journal
entries for the above transactions in the book of bansal Traders
and Mohan Traders

Neha Chopra · Accepted Answer

Dear
Student

Q 15

Journal
in the books
Ashirwad

Date
Particulars

Debit
Credit

01-01-06
Bill Receivable
A/c
Dr
10,000

To
Aakarshak

10,000

(Being bill accepted
by akarshak for 3
months)

Akarti
A/c
Dr
10,000

To Bills receivable
A/c

10,000

(Being bill
endorsed)

01-04-06
Aakarshak
A/c
Dr
10,450

To
Akarti

10,000

To Interest on Bill to be
renewed (10,000 x 18% x 3/12)

450

(Being
akarshak requested bill to be
renewed)

Akarti
A/c
Dr
10,000

To Cash
A/c

10,000

(Being
akarti paid in
cash)

Bills receivable
A/c
Dr
10,450

To Akarshak
A/c

10,450

(Being new
bill acepted by
akarshak together with 18%
interest)

Note: It has been assumed that
in question in place of Akarti , Prateek name is
mistakenly placed

Please ask next question in different thread

Regards

Date	Amount (Rs.)
Dec. 21,2005	1,000
Dec. 26, ,2005	1,200
Dec. 18, ,2005	2,000
Dec. 31, ,2005	5,000

Journal in the books Ashirwad
Date	Particulars		Debit	Credit

01-01-06	Bill Receivable A/c	Dr.	10,000
	To Aakarshak			10,000
	(Being bill accepted by akarshak for 3 months)

	Akarti A/c	Dr.	10,000
	To Bills receivable A/c			10,000
	(Being bill endorsed)

01-04-06	Aakarshak A/c	Dr.	10,450
	To Akarti			10,000
	To Interest on Bill to be renewed (10,000 x 18% x 3/12)			450
	(Being akarshak requested bill to be renewed)

	Akarti A/c	Dr.	10,000
	To Cash A/c			10,000
	(Being akarti paid in cash)

	Bills receivable A/c	Dr.	10,450
	To Akarshak A/c			10,450
	(Being new bill acepted by akarshak together with 18% interest)