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on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant
Related: Dishonour of Bill
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on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant ...
**Journal Entries in the Books of Ram:**
1. **On 1st January 2018:**
- Debit: Basant (Sundry Debtor) Account - Rs 5000
- Credit: Bills Receivable Account - Rs 5000
Explanation: Ram drew a bill on Basant for Rs 5000, which is recorded as a debit entry in Basant's account and a credit entry in Bills Receivable account.
2. **On 4th January 2018:**
- Debit: Bills Receivable Account - Rs 5000
- Credit: Basant (Sundry Debtor) Account - Rs 5000
Explanation: Basant accepted the bill drawn by Ram, which is recorded as a debit entry in Bills Receivable account and a credit entry in Basant's account.
3. **On the Due Date (Dishonour of Bill):**
- Debit: Basant (Sundry Debtor) Account - Rs 5000
- Credit: Bills Receivable Account - Rs 5000
Explanation: Since Basant is unable to meet the bill on the due date, the bill is dishonored. The amount is reversed by debiting Basant's account and crediting Bills Receivable account.
4. **On the Due Date (Dishonour Charges):**
- Debit: Basant (Sundry Debtor) Account - Dishonour Charges
- Credit: Ram's Account - Dishonour Charges
Explanation: Dishonour charges incurred by Ram due to the dishonour of the bill by Basant are recorded as a debit entry in Basant's account and a credit entry in Ram's account.
5. **On the Due Date (Discount Allowed):**
- Debit: Discount Account - Rs (Discount Amount)
- Credit: Bills Receivable Account - Rs (Discount Amount)
Explanation: Ram discounts the bill with his banker at 6% per annum. The discount allowed is recorded as a debit entry in Discount account and a credit entry in Bills Receivable account.
**Journal Entries in the Books of Basant:**
1. **On 1st January 2018:**
- Debit: Bills Payable Account - Rs 5000
- Credit: Ram (Sundry Creditor) Account - Rs 5000
Explanation: Basant accepts the bill drawn by Ram, which is recorded as a debit entry in Bills Payable account and a credit entry in Ram's account.
2. **On 4th January 2018:**
- Debit: Ram (Sundry Creditor) Account - Rs 5000
- Credit: Bills Payable Account - Rs 5000
Explanation: The acceptance of the bill by Basant is recorded as a debit entry in Ram's account and a credit entry in Bills Payable account.
3. **On the Due Date (Dishonour of Bill):**
- Debit: Ram (Sundry Creditor) Account - Rs 5000
- Credit: Bills Payable Account - Rs 5000
Explanation: The dishonour of the bill by Basant is recorded as a debit entry in Ram's account and a credit entry in Bills Payable account.
4. **On the Due Date (Dishon
1. **On 1st January 2018:**
- Debit: Basant (Sundry Debtor) Account - Rs 5000
- Credit: Bills Receivable Account - Rs 5000
Explanation: Ram drew a bill on Basant for Rs 5000, which is recorded as a debit entry in Basant's account and a credit entry in Bills Receivable account.
2. **On 4th January 2018:**
- Debit: Bills Receivable Account - Rs 5000
- Credit: Basant (Sundry Debtor) Account - Rs 5000
Explanation: Basant accepted the bill drawn by Ram, which is recorded as a debit entry in Bills Receivable account and a credit entry in Basant's account.
3. **On the Due Date (Dishonour of Bill):**
- Debit: Basant (Sundry Debtor) Account - Rs 5000
- Credit: Bills Receivable Account - Rs 5000
Explanation: Since Basant is unable to meet the bill on the due date, the bill is dishonored. The amount is reversed by debiting Basant's account and crediting Bills Receivable account.
4. **On the Due Date (Dishonour Charges):**
- Debit: Basant (Sundry Debtor) Account - Dishonour Charges
- Credit: Ram's Account - Dishonour Charges
Explanation: Dishonour charges incurred by Ram due to the dishonour of the bill by Basant are recorded as a debit entry in Basant's account and a credit entry in Ram's account.
5. **On the Due Date (Discount Allowed):**
- Debit: Discount Account - Rs (Discount Amount)
- Credit: Bills Receivable Account - Rs (Discount Amount)
Explanation: Ram discounts the bill with his banker at 6% per annum. The discount allowed is recorded as a debit entry in Discount account and a credit entry in Bills Receivable account.
**Journal Entries in the Books of Basant:**
1. **On 1st January 2018:**
- Debit: Bills Payable Account - Rs 5000
- Credit: Ram (Sundry Creditor) Account - Rs 5000
Explanation: Basant accepts the bill drawn by Ram, which is recorded as a debit entry in Bills Payable account and a credit entry in Ram's account.
2. **On 4th January 2018:**
- Debit: Ram (Sundry Creditor) Account - Rs 5000
- Credit: Bills Payable Account - Rs 5000
Explanation: The acceptance of the bill by Basant is recorded as a debit entry in Ram's account and a credit entry in Bills Payable account.
3. **On the Due Date (Dishonour of Bill):**
- Debit: Ram (Sundry Creditor) Account - Rs 5000
- Credit: Bills Payable Account - Rs 5000
Explanation: The dishonour of the bill by Basant is recorded as a debit entry in Ram's account and a credit entry in Bills Payable account.
4. **On the Due Date (Dishon
Community Answer
on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant ...
In the books of Ram ......
1st Jan. (1) B/R Dr. To Basant. .... ... (2)Bank A/c Dr. .... discount a/c Dr. ....To B/R..... May 4. (3) Basant Dr. .... To bank A/c ......
In the books of Basant .....
1st Jan. (1). Ram Dr. .... To B/P. .... (2) B/P Dr. ......To Ram....
1st Jan. (1) B/R Dr. To Basant. .... ... (2)Bank A/c Dr. .... discount a/c Dr. ....To B/R..... May 4. (3) Basant Dr. .... To bank A/c ......
In the books of Basant .....
1st Jan. (1). Ram Dr. .... To B/P. .... (2) B/P Dr. ......To Ram....
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on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill
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on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill.
on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill.
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on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill, a detailed solution for on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill has been provided alongside types of on 1st January 2018 Ram drew a bill for rs 5000 for 4 month on Basant who accepted the bill on 4th January Ram discounts the bill with His Banker at 6 percent per annum in person is unable to meet the bill on the due date and the bill is dishonoured pass journal entries in the books of Ram and Basant Related: Dishonour of Bill theory, EduRev gives you an
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