MENU
Question -

On Jan 01, 2017 Vibha sold goods worth ₹ 18,000 to Sudha and drew upon the latter a bill of exchange for the same amount payable after two months. Sudha accepted Vibha’s draft and returned the same to Vibha after acceptance. Vibha endorsed the bill immediately in favour of her creditor Geeta. Five days before the maturity of the bill Sudha requested Vibha to cancel the bill since she was short of funds. She further requested to draw a new bill upon her including interest of ₹ 200. Vibha accepted Sudha’s request. Vibha took the bill from Geeta by making the payment to her in cash and cancelled the same. Then she drew a new bill upon Sudha as agreed. The new bill was payable after one month. The new bill was duly met by Sudha on maturity. Record the necessary journal entries in the books of Vibha.



Answer -

Books of Vibha

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

01 Jan

Sudha

Dr.

18,000

To Sales A/c

18,000

(Goods tradedto Sudha)

01 Jan

Bills Receivable A/c

Dr.

18,000

To Sudha

18,000

(Sudha’s acceptance received)

01 Jan

Geeta

Dr.

18,000

To Bills Receivable A/c

18,000

(Sudha’s acceptance endorsed in favour of Geeta)

27 Feb

Sudha

Dr.

18,000

To Geeta

18,000

(Sudha cancelled the bill five days before the maturity)

27 Feb

Geeta

Dr.

18,000

To Cash A/c

18,000

(Cash paid to Geeta)

27 Feb

Sudha

200

To Interest A/c

200

(Interest credited to Sudha on account of

cancelling the bill )

27 Feb

Bills Receivable A/c

Dr.

18,200

To Sudha

18,200

(New bill received from Sudha)

02 Mar

Cash A/c

Dr.

18,200

To Sudha

18,200

(Sudha’s acceptance met on due date)

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
NodeJS Interview Questions Answers
ASP.Net Interview Questions Answers
Interview Questions Answers
×