Mohans acceptance for rs 2000 endorsed in favour of Sohan is dishonoured Sohan pays Rs 10 as noting - Accountancy - Bills of Exchange

Question

Mohans acceptance for rs 2000 endorsed in favour of Sohan is
dishonoured Sohan pays Rs 10 as noting charges Mohan pays Rs 1000
immediately and agrees to accept a new bill of exchange for 3
months for the balance together with interest at 12% per annum
Sohan account is settled by cheque journalise the transactions in
our , mohan and sohans books

Mohammed Vaseem · Accepted Answer

In the books of
Poonam (Our)
Journal

Date

Particulars

L
F

Debit
Amount
Rs

Credit
Amount
Rs

Bills Receivable
A/c

Dr

2,000

To Mohan

2,000

(Mohan's acceptance
received)

Sohan

Dr

2,000

To Bills Receivable A/c

2,000

(Mohanâ€™s bill endorsed to
Sohan)

Mohan

Dr

2,010

To Sohan

2,010

(Mohanâ€™s bill dishonoured)

Cash A/c

Dr

1,000

To Mohan

1,000

(Cash received from
Mohan)

Mohan

Dr

30

To Interest A/c
(1,000Ã—12%Ã—3/12)

30

(Interest due from
Mohan)

Bills Receivable
A/c

Dr

1,040

To Mohan

1,040

(Mohan's acceptance
received)

Sohan

Dr

2010

To Bank

2010

(Sohan Account settled
by paying cheque)

In the books of
Mohan
Journal

Date

Particulars

L
F

Debit
Amount
Rs

Credit
Amount
Rs

Poonam (Our)

Dr

2,000

To Bills Payable A/c

2,000

(Our bill
accepted)

Bills Payable
A/c

Dr

2,000

Noting charges
A/c

Dr

10

To Poonam (Our)

2,010

(Bill
dishonoured)

Poonam (Our)

Dr

1,000

To Cash A/c

1,000

(Cash paid to
Poonam)

Interest A/c

Dr

30

To Poonam (Our)

30

(Interest due to
Poonam)

Poonam (Our)

Dr

1,040

To Bills Payable

1,040

(Poonamâ€™s bill accepted)

In the books of
Sohan
Journal

Date

Particulars

L
F

Debit
Amount
Rs

Credit
Amount
Rs

Bills Recevable
A/c

Dr

2,000

To Poonam (Our)

2,000

(Bill Receivable
received from Poonam)

Poonam (Our)

Dr

2,010

To Bills Receivable A/c

2,000

To Bank A/c

10

(Bill Receivable
dishonoured)

Bank A/c

Dr

2,010

To Poonam (Our)

2,010

(Amount received from
Poonam)

In the books of Poonam (Our) Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bills Receivable A/c	Dr.		2,000
	To Mohan				2,000
	(Mohan's acceptance received)

	Sohan	Dr.		2,000
	To Bills Receivable A/c				2,000
	(Mohan’s bill endorsed to Sohan)

	Mohan	Dr.		2,010
	To Sohan				2,010
	(Mohan’s bill dishonoured)

	Cash A/c	Dr.		1,000
	To Mohan				1,000
	(Cash received from Mohan)

	Mohan	Dr.		30
	To Interest A/c (1,000×12%×3/12)				30
	(Interest due from Mohan)

	Bills Receivable A/c	Dr.		1,040
	To Mohan				1,040
	(Mohan's acceptance received)

	Sohan	Dr.		2010
	To Bank				2010
	(Sohan Account settled by paying cheque)

In the books of Mohan Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Poonam (Our)	Dr.		2,000
	To Bills Payable A/c				2,000
	(Our bill accepted)

	Bills Payable A/c	Dr.		2,000
	Noting charges A/c	Dr.		10
	To Poonam (Our)				2,010
	(Bill dishonoured)

	Poonam (Our)	Dr.		1,000
	To Cash A/c				1,000
	(Cash paid to Poonam)

	Interest A/c	Dr.		30
	To Poonam (Our)				30
	(Interest due to Poonam)

	Poonam (Our)	Dr.		1,040
	To Bills Payable				1,040
	(Poonam’s bill accepted)

In the books of Sohan Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bills Recevable A/c	Dr.		2,000
	To Poonam (Our)				2,000
	(Bill Receivable received from Poonam)

	Poonam (Our)	Dr.		2,010
	To Bills Receivable A/c				2,000
	To Bank A/c				10
	(Bill Receivable dishonoured)

	Bank A/c	Dr.		2,010
	To Poonam (Our)				2,010
	(Amount received from Poonam)