Question

Mr Sawant sold geads to Mr shinde en credit basis
costing Rs 20000 on 2nd Jan 2011 On Same day
Sawant draft a bill name of shinde for 4 months and
Shinde duly accept and return to sawant After
one month sawant endorsed the bill to Jamadar on the
due date Jamadar inform that bill has been Dishonored
On the time renewal shinde request to Sawant
accept the cash Rs 10000 Sawan accept the request
and renew the bill with interest @ 10% for 4 months
and ignore the noting changes On due date shinde
become in insolvent and 50 paise could recovered for his
private properly​

Answer 1

Explanation:

journal entries:-

2 jan Mr.shinde a/c Dr. 20000

To sales a/c 20000

2 jan Bills Receivable a/c Dr. 20000

To Mr. shinde a/c 20000

2 Feb Jamadar a/c Dr. 20000

To Bills Receivable a/c 20000

5 May Mr. shinde a/c Dr. 20000

To Jamadar a/c 20000

5 May Cash a/c Dr. 10000

Bills Receivable a/c Dr. 31000

To Mr. shinde a/c 41000

8 sep Mr. shinde a/c Dr. 31000

To Bills Receivable a/c 31000

8 sep cash/bank a/c Dr. 15500

Bad debts a/c Dr. 15500

To Mr. shinde a/c 31000