Questions-> Jornalise the following in the books of Neelam :

(i) Neelam's acceptance to dinesh for 2,000 renewed at 3 months together with interest at the rate of 18% per annum

(ii) Ranjan requests Neelam to renew his acceptance for 1,500 for two months Neelam agrees to it, provided interest 20% per annum is paid in cash.

(iii) Neelam's acceptance in favour of guddi for 15,000 dishonoured and noting charges paid by guddi 20 , which were paid by cheques later on.

Journal of Neelam

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

(i)

Bills Payable A/c

Dr.

 

2,000

 

 

To Dinesh

 

 

2,000

 

(Bill was cancelled for renewal)

 

 

 

 

 

 

 

 

 

Interest A/c (WN1)

Dr.

 

90

 

 

To Dinesh

 

 

90

 

(Interest due to Dinesh)

 

 

 

 

 

 

 

 

 

Dinesh

Dr.

 

2,090

 

 

To Bills Payable A/c

 

 

2,090

 

(Acceptance for new bill including interest)

 

 

 

 

 

 

 

 

(ii)

Ranjan

Dr.

 

1,500

 

 

To Bills Receivable A/c

 

 

1,500

 

(Cancellation of Ranjan’s acceptance for purpose of renewal)

 

 

 

 

 

 

 

 

 

Ranjan (WN2)

Dr.

 

50

 

 

To Interest A/c

 

 

50

 

(Interest due to Ranjan)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,500

 

 

Cash A/c

Dr.

 

50

 

 

To Ranjan

 

 

1,550

 

(Interest amount received in cash and new bill received for remaining balance)

 

 

 

 

 

 

 

 

(iii)

Bills Payable A/c

Dr.

 

15,000

 

 

Noting Charges A/c

Dr.

 

20

 

 

To Guddi

 

 

15,020

 

(Bill dishonoured and noting charges were credited to Guddi)

 

 

 

 

 

 

 

 

 

Guddi

Dr.

 

15,020

 

 

To Bank A/c

 

 

15,020

 

(Payment made to Guddi by cheque)

 

 

 

 

 

 

 

 

 

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