Neelam sells goods for Rs.10000 to Rashmi on credit on Jan 1,2006 and on the same date draws a 3 month bill on the later for the amount . Rashmi accepts it and returns to Neelam who discounts it with his bankers for Rs.9850. On the due date the bill is dishonoured . Noting charges Rs.150 were paid by the bank. Rashmi then pays Rs.3150 in cash and accepts a new bill at 3 months for the balance due to Neelam with Rs.120 as interest. Before maturity, Rashmi became insolvent and a final dividend of 40 paise in the rupee was recieved. Pass the journal entries in the books of neelam.
In the Books of Neelam Journal | ||||
Date | Particulars | Debit Amount Rs | Credit Amount Rs | |
2006 Jan.01
Jan.01
Jan.01
April 04
April 04
April 04
April 04
July 07
July 07 | Rashmi To Sales A/c (Goods sold to Rashmi)
Bills Recivable A/c To Rashmi (Rashmi’s acceptance received)
Bank A/c Discount A/c To Bills Receivable (Rashmi’s acceptance discounted with bank)
Rashmi To Bank A/c (Rashmi’s acceptance became dishonor and bank paid Rs 150 Noting Charges)
Cash A/c To Rashmi (Cash received from Rashmi)
Rashmi To Interest A/c (Interest due from Rashmi)
Bills Receivable A/c To Rashmi (Rashmi’s acceptance received)
Rashmi To Bills Receivable A/c (Rashmi’s acceptance dishonored)
Cash A/c Bad Debt A/c To Rashmi (40% of the amount due from Rashmi received and remaining 60% consider as bad debt) | Dr.
Dr.
Dr. Dr.
Dr.
Dr.
Dr.
Dr.
Dr.
Dr. | 10,000
10,000
9,850 150
10,150
3,150
120
7,120
7,120
2,848 4,272 |
10,000
10,000
10,000
10,150
3,150
120
7,120
7,120
7,120 |