Question

Mohan owes Shyam Rs 6,000. Mohan accepts a three months bill for Rs 5,900 being in full settlement
of the claim on 1st January,2019.On its due date the bill is dishonoured, noting charges are paid by
Shyam Rs 150. Give the journal entires in the books of Mohan.​

Answer 1

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Answer 2

Explanation:

Given Mohan owes Shyam Rs 6,000. Mohan accepts a three months bill for Rs 5,900 being in full settlement  of the claim on 1st January,2019.On its due date the bill is dishonoured, noting charges are paid by  Shyam Rs 150. Give the journal entires in the books of Mohan.

Date                                  Particular                          debit                 credit

Jan 2019                      Shyam A/c Debit                   6000

                               To bills payable A/C                                             5900

                               To discount received A/C                                       100

April 4             Bills payable A/C Debit                     5900

                         Discount received A/C Debit              100

                        Noting charges A/C Debit                    150

                       To Shyam A/C                                                               6150

                (Being the bill dishonoured, noting charges  

                                          being Rs 150)