In the books of P
Journal Entries
Date Particulars Amount Amount
2022-
23
1 July R A/c Dr.
To Bills payable A/ c
(Being bill of 4 months accepted and sent to Mr.
R)
2,00,000
-
-
2,00,000
Bank A/c Dr.
Discounting charges A/ c Dr.
To R A/c
(Being the amount received from R)
75,200
4,800
-
-
-
80,000
4 Nov. Bills receivable A/ c Dr.
To R A/c
(Being the bill accepted by R)
2,50,000
-
-
2,50,000
Bank A/c Dr.
Discounting charges A/ c Dr.
2,36,250
13,750
-
-
To Bills receivable A/ c
(Being bill discounted with the bank)
- 2,50,000
Bills payable A/ c Dr.
To Bank A/c
(Being bills payable paid)
2,00,000
-
-
2,00,000
R A/c Dr.
To Bank A/c
To Discounting charges
(Being amount remitted to R & along with his
share of discounting charges)
66,984
-
-
-
56,700
10,284
7 Mar R A/c Dr.
To Bank A/c
(Being R's acceptance dishonoured due to
his insolvency)
2,50,000
-
-
2,50,000
Bank A/c Dr.
Bad debts A/ c Dr.
To R A/c
(The amount received from Rand the balance
being written off as bad debts)
93,492
93,492
-
-
-
1,86,984
Working Note:
1. Share of Pin discounting charges of first bill = Amount Remitted x 100
Discounted Amt of bill
= 75,200 / 1,88,000 x 100 = 40%
= 40% of 12,000 = 4,800
2. Share of R in discounting charges of second bill= 13,750 X (1,20,000 + 56,700) / 2,36,250
= 10,284
R's A/c
Particulars Amt Particulars Amt
To Bills Payable A/ c
To Bank A/c
To Discounting charges
To Bank A/c
2,00,000
56,700
10,284
2,50,000
By Bank A/c
By Discounting Charges A/ c
By Bills receivable A/ c
By Bank A/c
By Bad debts A/ c
75,200
4,800
2,50,000
93,492
93,492
TOTAL 5,16,984 5,16,984