Abdula sold goods to Tahir on
Jan 17, 2006 for Rs 18,000. He drew a bill of exchange for the same amount on
Tahir for 45 days. On the same date Tahir accepted the bill and returned it to
Abdulla. On the due date Abdulla presented the bill to Tahir which was
dishonoured. Abdulla paid Rs 40 as noting charges. Five days after the
dishonour of his acceptance Tahir settled his debt by making a payment of Rs 18,700
including interest and noting charges. Record the necessary journal entries in
the books of Abdulla and Tahir. Also prepare Tahir.s account in the books of
Abdulla and Abdulla.s account in the books of Tahir.
Abdula sold goods to Tahir on Jan 17, 2006 for Rs 18,000. He drew a bill of exchange for the same amount on Tahir for 45 days. On the same date Tahir accepted the bill and returned it to Abdulla. On the due date Abdulla presented the bill to Tahir which was dishonoured. Abdulla paid Rs 40 as noting charges. Five days after the dishonour of his acceptance Tahir settled his debt by making a payment of Rs 18,700 including interest and noting charges. Record the necessary journal entries in the books of Abdulla and Tahir. Also prepare Tahir.s account in the books of Abdulla and Abdulla.s account in the books of Tahir.
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Books of Abdula Journal |
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
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|
2006 |
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Jan.17 |
Tahir |
Dr. |
18,000 |
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To Sales A/c |
18,000 |
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(Goods sold to Tahir) |
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Jan.17 |
Bills Receivable A/c |
Dr. |
18,000 |
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To Tahir |
18,000 |
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(Tahir's acceptance received) |
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Mar.07 |
Tahir |
Dr. |
18,040 |
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To Bills Receivable A/c |
18,000 |
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To Cash |
40 |
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(Tahir's acceptance dishonoured
and Rs 40 paid as noting charges) |
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Mar.07 |
Tahir |
Dr. |
660 |
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To Interest A/c |
660 |
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(Interest charged from Tahir on account of bill dishonoured) |
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Mar.12 |
Cash A/c |
Dr. |
18,700 |
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To Tahir |
18,700 |
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(Tahir cleared his account by paying cash) |
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Ledger Tahir’s Account |
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Dr. |
Cr. |
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|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2006 |
|
|
2006 |
|
|
||
|
Jan.17 |
Sales |
18,000 |
Jan.17 |
Bills Receivable |
18,000 |
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Mar.07 |
Bills Receivable |
18,000 |
Mar.12 |
Cash |
18,700 |
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Mar.07 |
Cash |
40 |
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Mar.07 |
Interest |
660 |
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|
36,700 |
|
36,700 |
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Books of Tahir Journal |
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|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
2006 |
|
|
|
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|
Jan.17 |
Purchases A/c |
Dr. |
18,000 |
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To Abdula |
18,000 |
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(Goods bought from Abdula) |
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Jan.17 |
Abdula |
Dr. |
18,000 |
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To Bills Payable A/c |
18,000 |
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(Bill drawn by Abdula accepted, payable after 15 days) |
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Mar.07 |
Bills Payable A/c |
Dr. |
18,000 |
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|
Noting Charges A/c |
Dr. |
40 |
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To Abdula |
18,040 |
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|
(Abula’s bill dishonoured) |
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|
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|
Mar.07 |
Interest A/c |
Dr. |
660 |
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To Abdula |
660 |
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|
(Interest charged on account of bill dishonoured) |
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|
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Mar.12 |
Abdula |
Dr. |
18,700 |
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||
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To Cash A/c |
18,700 |
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(Cash paid to Abdula) |
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Ledger Abdula’s Account |
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|
Dr. |
Cr. |
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|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2006 |
|
|
2006 |
|
|
||
|
Jan.17 |
Bills Payable |
18,000 |
Jan.17 |
Purchases |
18,000 |
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|
Mar.12 |
Cash |
18,700 |
Mar.07 |
Bills Payable |
18,000 |
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Mar.07 |
Noting Charges |
40 |
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Mar.07 |
Interest |
660 |
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|
36,700 |
|
36,700 |
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