Page 127 - DEBK-XI(2020)

16.8 Double Entry Book Keeping—CBSE XI

4. Anil draws a bill of exchange on Bindu for goods supplied, for ` 10,000 dated
1st January at three months. Bindu accepts the bill and thereafter on 4th January
Anil discounts it with his bank at 8 per cent per annum. The bill is dishonoured
on presentation on the due date and the bankers debit Anil with ` 20 noting
expenses in addition to the value of the bill. Bindu pays Anil cash ` 5,000 on
5th April and simultaneously accepts a fresh bill for the balance due by him, including
` 300 for interest and noting expenses on the first bill. The bill is paid in time.
Journalise the above transactions in the books of Anil and Bindu.
Solution: In the Books of Anil
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Jan. 1 Bills Reveivable A/c ...Dr. 10,000
To Bindu 10,000
(Being the Bill No. ... accepted by Bindu for goods)
Jan. 4 Bank A/c ...Dr. 9,800
Discounting Charges A/c ...Dr. 200
To Bills Receivable A/c 10,000
(Being the discounting of Bindu’s Bill No. ....)
April 4 Bindu ...Dr. 10,020
To Bank A/c 10,020
(Being the dishonour of Bindu’s acceptance on presentation by the
Bank and the Noting Charge ` 20 incurred by Bank)
April 5 Bank A/c ...Dr. 5,000
To Bindu 5,000
(Being the part payment by Bindu against the bill dishonoured)
April 5 Bindu ...Dr. 300
To Interest A/c 300
(Being the interest charged in consideration of accepting a new bill)
April 5 Bills Receivable A/c ...Dr. 5,320
To Bindu 5,320
(Being the Bill accepted by Bindu against dues of Bill No. .... together with
noting charges of ` 20 and interest of ` 300)
Bank A/c ...Dr. 5,320
To Bills Receivable A/c 5,320
(Being the cash received)

In the Books of Bindu
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Jan. 1 Anil ...Dr. 10,000
To Bills Payable A/c 10,000
(Being the acceptance of Anil’s bill given against purchase of goods)
April 4 Bills Payable A/c ...Dr. 10,000
Noting Charges A/c ...Dr. 20
To Anil 10,020
(Being the dishonour of Anil’s bill and ` 20 noting charges incurred by Anil)
April 5 Anil ...Dr. 5,000
To Bank A/c 5,000
(Being the part payment against dishonour of Anil’s bill)