Question

OR
Q.3. Parul owed Alka Rs.36,000;Parul accepted a bill drawn by Alka for the amount at 4 months. Alka
endorsed the same bill to Bhumi. Before due date, Parul approached Alka for renewal of bill. Alka
agreed on condition that Rs. 12,000 be paid immediately together with interest on the remaining
amount of 8% p.a. for 3 months and Parul should accept a new bill for the balance amount. These
arrangements were carried through. However, before the due date Parul became insolvent and only
50% of the amount could be recovered from her estate.
Give Journal Entries in the books of Alka
110​

Answer 1

Answer:

Step-by-step explanation:

                        Journal Entries in the books of Alka

Bill receivable       36000

To Parul                                      36000

Bhumi                   36000

 To Bill receivable                       36000

Parul A/c              36000

To bhumi A/c                             36000

Cash A/c               12480

 To interest                               480

 To Parul A/c                          12000

Bill receivable       24000

    To Parul                                  24000

Cash A/c                    12000

B.D A/c                       12000

  To Parul                                        24000