Question

31. Mehak sold goods for ₹ 24,000 to Shally on 31st July, 2017 and drew three bills for ₹ 6,000, \( ₹ 8,000 \) and \( ₹ 10,000 \) payable after two, three and four months respectively. The first bill was kept by Mehak with her till maturity date. She endorsed the second bill in favour of her creditor Kanak. The third bill was discounted on 3rd September, 2017 @ 12\% p.a. from bank. The first and second bill were duly met on maturity but the third bill was dishonoured and the bank paid ₹ 150 as noting charges. On 3rd December, 2017 Shally paid ₹ 5,000 and noting charges in cash and accepted a new bill at two months after date for the balance amount plus interest ₹ 200 . The new bill was met on maturity by Shally. You are required to give the Journal entries in the books on Mehak. (Delhi)

Answer 1

31 july  shally account debit   24000

                 To B/R account.       24000

31 july  B/R account debit      24000

                   To shally account  24000

31 july.  kanak  account debit     8000

                     To B/R account      8000

3 sep.    Bank account debit  9900

                Discount account debit 100

                         To B/R account.  10000

3 oct      B/R account debit.         6000

                          To cash account.     6000

3 nov.           No entry

3 dec.      Shelly account debit 1050

                              To B/R account.   10150

 3 dec.      B/R account debit.   5150

                          To cash account  5150

3 dec.       B/R account debit.    5200

                       To shally  5200

6 feb.         B/R account debit 5200

                         To cash account 5200

                            Thanks