1.

Mr Sawant sold geads to Mr shinde en credit basiscosting Rs 20000 on 2nd Jan 2011 On Same daySawant draft a bill name of shinde for 4 months andShinde duly accept and return to sawant Afterone month sawant endorsed the bill to Jamadar on thedue date Jamadar inform that bill has been DishonoredOn the time renewal shinde request to Sawantaccept the cash Rs 10000 Sawan accept the requestand renew the bill with interest @ 10% for 4 monthsand ignore the noting changes On due date shindebecome in insolvent and 50 paise could recovered for hisprivate properly​

Answer»

EXPLANATION:

journal ENTRIES:-

2 jan Mr.SHINDE a/c Dr. 20000

To sales a/c 20000

2 jan Bills Receivable a/c Dr. 20000

To Mr. shinde a/c 20000

2 Feb Jamadar a/c Dr. 20000

To Bills Receivable a/c 20000

5 May Mr. shinde a/c Dr. 20000

To Jamadar a/c 20000

5 May CASH a/c Dr. 10000

Bills Receivable a/c Dr. 31000

To Mr. shinde a/c 41000

8 SEP Mr. shinde a/c Dr. 31000

To Bills Receivable a/c 31000

8 sep cash/bank a/c Dr. 15500

Bad debts a/c Dr. 15500

To Mr. shinde a/c 31000



Discussion

No Comment Found

Related InterviewSolutions