Mar. Ashok’s A/c , To Cash A/c , (Paid to Ashok Rs. , plus noting charges) Mar. Interest A/c To Ashok’s A/c (Interest allowed to Ashok) Mar.
Ashok’s A/c , To Bills Payable A/c , (New draft of Ashok for two months accepted) May Bills Payable A/c , , (Met new acceptance for Rs. , in favour of Ashok on maturity) Ashok’s Account Cr. J. F.
J.F. Oct. Bills payable , Oct. Purchases , Mar.
Cash , Mar. Bills Payable , Noting charges Mar. Bills Payable , Mar. Interest , , Illustration .
Aashirwad draws on Aakarshak a Bill of exchange for months for Rs. , which Aakarshak accepts on January , . Aashirwad endorses the bill in favour of Aakarti. Before maturity Aakarshak approaches Aashirwad with the request that the bill be renewed for a further period of months at per cent per annum interest.
Aashirwad pays the sum to Aakriti on the due date and agrees to the proposal of Aakarshak. Record journal entries in the books of Aashirwad, assuming that the second bill is duly met. Solution Book of Ashirwad Bills Receivable A/c To Aakarshak’s A/c (The Bill of exchange received from Aakarshak) Jan. Aakarati’s A/c (The bill of exchange received from Aakarshak, endorsed to Aakarati) Apr.
Aakarshak’s A/c To Aakarati’s A/c (Cancellation of the bill of exchange received from Aakarshak now with Aakarati) Apr. Aakarati’s A/c (Payment of the amount due to Aakarati) Apr. Aakarshak’s A/c To Interest A/c (Interest due from Aakarshak on Rs. , for months at % p.a.) Apr.
Bills Receivable A/c , To Aakarshak’s A/c , (The new bill received from Aakarshak for the amountdue for him) July , , (The amount received from Aakarshak in respect of the renewed bill) Illustration . Ankit owes Nikita a sum of Rs. , . On April , Ankit gives a promissory note for the amount for months to Nikita who gets it discounted with her bankers for