28. Record the following transactions in the books of Sharma:
(a) Sharma's acceptance in favour of Banerji for 2,000 dishonoured. Banerji agreed to receive 1,000 in
cash and a new bill at 3 months for 1,000. Interest @ 6% p.a. is to be paid immediately by cash.
(b) Sharma's acceptance in favour of Birdi for 1,500
dishonoured for want of instructions. Birdi claims
1,510 which is paid by cheque.
(c) Vohra's acceptance for 1,000 renewed for a further period of 3 months together with interest @ 9% p.a.
Answers
Explanation:
a. Bills Payable a/c dr 2000
to Banerji a/c 2000
(Being bills dishonoured)
Banerji a/c dr 1000
to Bills Payable a/c 1000
(Being new bill drawn)
Banerji a/c dr 1000
to Cash a/c 1000
(Being cash paid)
Interest allowed a/c dr 15
to Cash a/c 15
b. Bills Payable a/c dr 2000
to Birdi a/c 2000
(Being bills dishonored)
Birdi a/c dr 1500
Interest allowed a/c dr 10
to Bank a/c 1510
(being paid through cheque)
c. Bills receivable a/c dr 1000
Interest allowed a/c dr 22.5
to Vohra's a/c 1022.5
(being acceptance of bill including interest)