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Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.?
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Problem 4 Journalize the following in the books of Don: (1) Bob inform...
Journal Entry for Dishonoured Acceptance and Noting Charges
Date: [Date of the event]
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Noting Charges A/c | 40 |
Ray's Acceptance A/c | 3,000 |
To Bank A/c | 3,040 |
Explanation: Noting charges is an expense incurred by the bank to record the dishonour of the acceptance. Ray's acceptance is debited as it has been dishonoured. Bank account is credited as the bank has paid the noting charges.
Journal Entry for Accepting Ray's Acceptance
Date: [Date of the event]
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Ray's Acceptance A/c | 3,000 |
Interest on Acceptance A/c | 50 |
To Ray's A/c | 3,050 |
Explanation: Ray's acceptance is debited as it has been accepted by Don. Interest on acceptance is credited as it is the income earned by Don for accepting the bill. Ray's account is credited as the amount is payable to him.
Journal Entry for Settlement using Don's Acceptance
Date: [Date of the event]
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Ralph's A/c | 3,160 |
To James's A/c | 3,160 |
Explanation: Ralph's account is debited as the amount is payable to him. James's account is credited as the amount has been settled using Don's acceptance.
Date: [Date of the event]
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Noting Charges A/c | 40 |
Ray's Acceptance A/c | 3,000 |
To Bank A/c | 3,040 |
Explanation: Noting charges is an expense incurred by the bank to record the dishonour of the acceptance. Ray's acceptance is debited as it has been dishonoured. Bank account is credited as the bank has paid the noting charges.
Journal Entry for Accepting Ray's Acceptance
Date: [Date of the event]
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Ray's Acceptance A/c | 3,000 |
Interest on Acceptance A/c | 50 |
To Ray's A/c | 3,050 |
Explanation: Ray's acceptance is debited as it has been accepted by Don. Interest on acceptance is credited as it is the income earned by Don for accepting the bill. Ray's account is credited as the amount is payable to him.
Journal Entry for Settlement using Don's Acceptance
Date: [Date of the event]
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Ralph's A/c | 3,160 |
To James's A/c | 3,160 |
Explanation: Ralph's account is debited as the amount is payable to him. James's account is credited as the amount has been settled using Don's acceptance.
Community Answer
Problem 4 Journalize the following in the books of Don: (1) Bob inform...
(i) Ray's a/c. Dr. 3040
To Bob's a/c. 3040
note: As the bill accepted by Ray endorsed to Bob dishonoured, liability for Bob increases and Ray becomes liable to Don. Further Bob paid noting charges and it is to be reimbursed by Ray to Don
Interest a/c. Dr 51
Bob's a/c. Dr 3040
To cash a/c. 1000
To b/r a/c. 2091
note : total payable to Bob is 3040 i.e 3000+ 40 noting charges. Don paid ₹1000 and for remaining raised a bill with 10% interest p.a.
Interest for 2040 = 2040*10% * 3/12 = 51
Bills recievable a/c. Dr. 3101
To Ray's a/c 3040
To interst a/c. 61
note : Accepted Ray's bill for two months with 12% interst p.a so the total amount payable by Ray = 3040+ interest i.e 3040*12%*2/12 = 60.8 ~ 61
(ii) B/P a/c. Dr 3160
Discount a/c Dr 40
To james a/c. 3200
note : Ralph is the creditor of Don and had accepted a bill of 3160 ( bills payable for Don) . James is the debtor of Don and owes ₹3200 to him. He sends a bill which was earlier accepted by Don to Ralph for ₹ 3160. ₹ 40 is allowed to James as discount. However the liability of bills payable accepted to Ralph doesn't needs a payment as the bill reached Don through endorsement.
To Bob's a/c. 3040
note: As the bill accepted by Ray endorsed to Bob dishonoured, liability for Bob increases and Ray becomes liable to Don. Further Bob paid noting charges and it is to be reimbursed by Ray to Don
Interest a/c. Dr 51
Bob's a/c. Dr 3040
To cash a/c. 1000
To b/r a/c. 2091
note : total payable to Bob is 3040 i.e 3000+ 40 noting charges. Don paid ₹1000 and for remaining raised a bill with 10% interest p.a.
Interest for 2040 = 2040*10% * 3/12 = 51
Bills recievable a/c. Dr. 3101
To Ray's a/c 3040
To interst a/c. 61
note : Accepted Ray's bill for two months with 12% interst p.a so the total amount payable by Ray = 3040+ interest i.e 3040*12%*2/12 = 60.8 ~ 61
(ii) B/P a/c. Dr 3160
Discount a/c Dr 40
To james a/c. 3200
note : Ralph is the creditor of Don and had accepted a bill of 3160 ( bills payable for Don) . James is the debtor of Don and owes ₹3200 to him. He sends a bill which was earlier accepted by Don to Ralph for ₹ 3160. ₹ 40 is allowed to James as discount. However the liability of bills payable accepted to Ralph doesn't needs a payment as the bill reached Don through endorsement.
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Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.?
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Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.?.
Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.?.
Solutions for Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? defined & explained in the simplest way possible. Besides giving the explanation of
Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.?, a detailed solution for Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? has been provided alongside types of Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? theory, EduRev gives you an
ample number of questions to practice Problem 4 Journalize the following in the books of Don: (1) Bob informs Don that Ray's acceptance for Rs. 3,000 has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash and the balance as bill at three months at interest of 10%.Don accepts from Ray his acceptance at two months plus interest @ 12% p.a. (ii) James owes Don Rs 3,200; he sends Don's own acceptance in favour of Ralph for Rs. 3.160; in full settlement.? tests, examples and also practice CA Foundation tests.
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