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Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties?
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Sandhya solds goods to Radha for peace 5000 on 1st May on the same day...
Journal Entries in the Books of Sandhya:
1. On 1st May:
Debtor A/c (Radha) Dr. 5000
To Sales A/c 5000
(Being goods sold to Radha)
2. On 1st May:
Bills Receivable A/c Dr. 5000
To Debtor A/c (Radha) 5000
(Being acceptance of bill by Radha)
3. On Due Date:
Bank A/c Dr. 4950
Discount A/c Dr. 50
To Bills Receivable A/c 5000
(Being bill discounted with the bank)
4. On Dishonour:
Debtor A/c (Radha) Dr. 5000
To Bank A/c 4950
To Discount A/c 50
(Being bill dishonoured and payment made to the bank)
5. On Agreement:
Debtor A/c (Radha) Dr. 3000
To Bank A/c 3000
(Being amount accepted immediately by Sandhya)
6. On Drawing New Bill:
Debtor A/c (Radha) Dr. 2000
To Bills Receivable A/c 2000
(Being new bill drawn by Sandhya for remaining amount)
7. On Late Payment:
Bank A/c Dr. 220
To Bills Receivable A/c 220
(Being interest charged on late payment)
Journal Entries in the Books of Radha:
1. On 1st May:
Purchases A/c Dr. 5000
To Creditor A/c (Sandhya) 5000
(Being goods purchased from Sandhya)
2. On Due Date:
Bills Payable A/c Dr. 5000
To Bank A/c 4950
To Discount Received A/c 50
(Being bill discounted with the bank)
3. On Dishonour:
Creditor A/c (Sandhya) Dr. 5000
To Bank A/c 4950
To Discount Received A/c 50
(Being bill dishonoured and payment made to the bank)
4. On Agreement:
Bank A/c Dr. 3000
To Creditor A/c (Sandhya) 3000
(Being amount accepted immediately by Sandhya)
5. On Late Payment:
Bills Payable A/c Dr. 220
To Bank A/c 220
(Being interest charged on late payment)
Explanation:
1. Sandhya sold goods to Radha on 1st May and Radha accepted a bill drawn by Sandhya for Rs. 5000 at 4 months.
2. Sandhya discounted the bill with a bank at 6% per annum. On due date, the bill was dishonoured.
3. Radha requested Sandhya to accept Rs. 3000 immediately and draw a new bill for the remaining amount with interest at 10% per annum.
4. Sandhya agreed and drew a new bill. However, the second bill was also dishonoured.
5. The journal entries for both parties have been shown above.
1. On 1st May:
Debtor A/c (Radha) Dr. 5000
To Sales A/c 5000
(Being goods sold to Radha)
2. On 1st May:
Bills Receivable A/c Dr. 5000
To Debtor A/c (Radha) 5000
(Being acceptance of bill by Radha)
3. On Due Date:
Bank A/c Dr. 4950
Discount A/c Dr. 50
To Bills Receivable A/c 5000
(Being bill discounted with the bank)
4. On Dishonour:
Debtor A/c (Radha) Dr. 5000
To Bank A/c 4950
To Discount A/c 50
(Being bill dishonoured and payment made to the bank)
5. On Agreement:
Debtor A/c (Radha) Dr. 3000
To Bank A/c 3000
(Being amount accepted immediately by Sandhya)
6. On Drawing New Bill:
Debtor A/c (Radha) Dr. 2000
To Bills Receivable A/c 2000
(Being new bill drawn by Sandhya for remaining amount)
7. On Late Payment:
Bank A/c Dr. 220
To Bills Receivable A/c 220
(Being interest charged on late payment)
Journal Entries in the Books of Radha:
1. On 1st May:
Purchases A/c Dr. 5000
To Creditor A/c (Sandhya) 5000
(Being goods purchased from Sandhya)
2. On Due Date:
Bills Payable A/c Dr. 5000
To Bank A/c 4950
To Discount Received A/c 50
(Being bill discounted with the bank)
3. On Dishonour:
Creditor A/c (Sandhya) Dr. 5000
To Bank A/c 4950
To Discount Received A/c 50
(Being bill dishonoured and payment made to the bank)
4. On Agreement:
Bank A/c Dr. 3000
To Creditor A/c (Sandhya) 3000
(Being amount accepted immediately by Sandhya)
5. On Late Payment:
Bills Payable A/c Dr. 220
To Bank A/c 220
(Being interest charged on late payment)
Explanation:
1. Sandhya sold goods to Radha on 1st May and Radha accepted a bill drawn by Sandhya for Rs. 5000 at 4 months.
2. Sandhya discounted the bill with a bank at 6% per annum. On due date, the bill was dishonoured.
3. Radha requested Sandhya to accept Rs. 3000 immediately and draw a new bill for the remaining amount with interest at 10% per annum.
4. Sandhya agreed and drew a new bill. However, the second bill was also dishonoured.
5. The journal entries for both parties have been shown above.
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Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties?
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Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties?.
Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sandhya solds goods to Radha for peace 5000 on 1st May on the same day Radha accepted bill for Rs 5000 at 4 months drawn by Sandhya Sandhya discounted the bill with a bank at 6% Pa on due date the bill was Dishonored and Radha requested Sandhya to accept rupees 3000 immediately and draw upon her a new bill for remaining amount right to months together with interest at 10% Pa Sandhya agreed the second bill was dely honour give journal entries in the books of both the parties?.
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