Suresh draws a bill for 15,000 on Anup on 15th April, 2020 for 3 months, which Anup returns to Suresh after accepting the same. Suresh gets it dis-...

Question

Suresh draws a bill for 15,000 on Anup on 15th April, 2020 for 3 months, which Anup returns to Suresh after accepting the same. Suresh gets it dis- counted with the bank for 14,700 on 18th April, 2020 and remits one-third amount to Anup. On the due date Suresh fails to remit the amount due to Anup, but he accepts a bill of 17,500 for 3 months, which Anup discounts for 17,100 and remits 2,825 to Suresh. Before the maturity of the renewed bill Suresh becomes insolvent and only 50% was realized from his estate on 31st October, 2020. Pass necessary Journal entries for the above transactions in the books of Suresh. [Nov. 2020, 10 Marks]; [MTP Jan. 2025; Modified Figures-3X]

Accepted Answer

Option : Correct Option. Solution: In the books of Suresh Journal Entries | Date | Particulars | L.F. | Debit (₹) | Credit (₹) | | :--- | :--- | :---: | ---: | ---: | | 2020
15 April | Bills receivable A/c
To Anup's A/c
(Being accommodation bill drawn on Anup of 15,000) | | 15,000 |
15,000 | | 18 April | Bank A/c
Discounting Charges A/c
To Bills Receivable A/c
(Being bill discounted with bank) | | 14,700
300 |

15,000 | | | Anup's A/c
To Bank A/c
To Discounting Charges A/c
(Being 1/3rd amount remitted to him) | | 5,000 |
4,900
100 | | 18 July | Anup's A/c
To Bills payable A/c
(Being bill accepted in favour of Anup for 3 Months) | | 17,500 |
17,500 | | | Bank A/c
Discounting Charges A/c (1)
To Anup’s A/c
(Being amount received with discount charges from Anup) | | 2,825
300 |

3,125 | | 21 Oct | Bills payable A/c
To Anup's A/c
(Being bills payable accepted earlier, now dishonoured) | | 17,500 |
17,500 | | 31 Oct | Anup's A/c (WN 2)
To Bank A/c
To Deficiency A/c
(Being amount paid as full and final settlement) | | 13,125 |
6,562.50
6,562.50 |
Working Note: 1. Share of Suresh in discounting charges of Second Bill: 400 x 1000 + 2825/17,100 = 300 2. Anup's A/c | Date | Particulars | Amt | Date | Particulars | Amt | | :--- | :--- | ---: | :--- | :--- | ---: | | 2020
18 Apr

18 July
31 Oct | To Bank A/c
To Discounting Charges
To Bills Payable A/c
To Bank A/c
To Deficiency A/c | 4,900
100
17,500
6,562.50
6,562.50 | 2020
15 Apr
18 July

21 Oct | By Bills Receivable A/c
By Bank A/c
By Discounting charges
By Bills Payable A/c | 15,000
2,825
300
17,000 | | | TOTAL | 35,625 | | TOTAL | 35,625 |

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