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Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam?
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Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam i...
Journal entries in the books of Vijay and Pritam
In the books of Vijay:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st April 2016 | Pritam A/C | - | 16,000 | -
| Sales A/C | - | - | 16,000
On the acceptance of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st July 2016 | Pritam A/C | - | - | 16,000
| Bills Receivable A/C | - | 16,000 | -
On the renewal of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st October 2016 | Bills Receivable A/C | - | 16,000 | -
| Pritam A/C | - | - | 16,000
| Interest Received A/C | - | - | 360
In the books of Pritam:
On the acceptance of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st July 2016 | Bills Payable A/C | - | 16,000 | -
| Vijay A/C | - | - | 16,000
On the renewal of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st October 2016 | Vijay A/C | - | 16,000 | -
| Bills Payable A/C | - | - | 16,000
| Interest Paid A/C | - | 360 | -
Explanation:
- Vijay sold goods to Pritam for rupees 16,000 on 1st April 2016.
- Pritam accepted a three-month bill on due date.
- Pritam requested that the bill be renewed for a fresh period of 2 months.
- Vijay agreed provided interest of 9% was paid immediately in cash.
- Pritam was agreeable.
- The second bill was met on due date.
- The journal entries in the books of Vijay and Pritam have been shown above.
- The entries reflect the transactions that took place at each stage.
- The entries in the books of Vijay show how he recorded the sale and the acceptance and renewal of the bill.
- The entries in the books of Pritam show how he recorded the acceptance and renewal of the bill and the payment of interest.
- The entries reflect the double-entry system of accounting, where every transaction has two aspects - a debit and a credit.
In the books of Vijay:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st April 2016 | Pritam A/C | - | 16,000 | -
| Sales A/C | - | - | 16,000
On the acceptance of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st July 2016 | Pritam A/C | - | - | 16,000
| Bills Receivable A/C | - | 16,000 | -
On the renewal of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st October 2016 | Bills Receivable A/C | - | 16,000 | -
| Pritam A/C | - | - | 16,000
| Interest Received A/C | - | - | 360
In the books of Pritam:
On the acceptance of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st July 2016 | Bills Payable A/C | - | 16,000 | -
| Vijay A/C | - | - | 16,000
On the renewal of the bill:
Date | Particulars | L.F. | Debit | Credit
----|------------|-----|-------|-------
1st October 2016 | Vijay A/C | - | 16,000 | -
| Bills Payable A/C | - | - | 16,000
| Interest Paid A/C | - | 360 | -
Explanation:
- Vijay sold goods to Pritam for rupees 16,000 on 1st April 2016.
- Pritam accepted a three-month bill on due date.
- Pritam requested that the bill be renewed for a fresh period of 2 months.
- Vijay agreed provided interest of 9% was paid immediately in cash.
- Pritam was agreeable.
- The second bill was met on due date.
- The journal entries in the books of Vijay and Pritam have been shown above.
- The entries reflect the transactions that took place at each stage.
- The entries in the books of Vijay show how he recorded the sale and the acceptance and renewal of the bill.
- The entries in the books of Pritam show how he recorded the acceptance and renewal of the bill and the payment of interest.
- The entries reflect the double-entry system of accounting, where every transaction has two aspects - a debit and a credit.
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Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam?
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Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam? 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 Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam?.
Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam? 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 Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vijay sold goods to Pritam on 1st April 2016 for rupees 16000 Pritam immediately accepted a three month bill on due date Pritam requested that the bill be renewed for a fresh period of 2 months Vijay agrees provided interested 9% was paid immediately in cash to this Pritam was agreeable the second bill was met on due date give journal entries in the books of Vijay and Pritam?.
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