Sohan drew on Mohan a bill for Rs. 1,500 for 3 months on June 1, 2023. The bill was endorsed to Rohan. On July 15, Mohan approaches Sohan to renew the bill for a period of tree months and charges Rs. As interest. Sohan agress to renew the bill. Mohan pays the amount of interest in cash and accepts a new bill for Rs. 1,500. The bill is honoured on the due date. Record these transactions in the books of various parties.

, , No Comments

 Let's record the transactions in the books of Sohan, Mohan, and Rohan:

 1. June 1, 2023:

    Sohan 's Books:

      Debit: Mohan (Account Receivable) - R s. 1,500

      Credit: Bills Receivable - R s. 1,500 (Drawn on Mohan for 3 months)

   - Mohan's Books:

      - Debit: Bills Payable - R s. 1,500

      Credit: Sohan (Account Payable) - R s. 1,500

   - [Endorsement to Rohan]

   - Rohan's Books:

      Debit: Bills Receivable - R s. 1,500

      Credit: Sohan (Account Receivable) - R s. 1,500 (Bill endorsed by Sohan to Rohan)

2. July 15, 2023:

   - Mohan's Books:

      Debit: Bills Payable - R s. 1,500 (Renewal of the bill)

      Credit: Interest Earned - R s. (Amount of Interest charged)

   - Sohan's Books:

     Debit: Interest Income - R s. (Amount of Interest charged)

     Credit: Cash - R s. (Amount of Interest received)

3. On Due Date (September 1, 2023):

   - Mohan's Books:

     Debit: Bills Payable - R s. 1,500

      Credit: Cash - R s. 1,500 (Bill honored on due date)

   - Rohan's Books:

      Debit: Sohan  (Account Receivable) - R s. 1,500

      Credit: Bills Receivable - R s. 1,500 (Payment received from Mohan)

These entries reflect the initial drawing of the bill, the endorsement to Rohan, the renewal with interest, and the final payment of the bill on its due date. The exact amounts and accounts involved will depend on the agreed-upon interest rate and the actual amount of interest charged. Adjustments can be made accordingly based on the specific terms of the transactions.

0 टिप्पणियाँ:

Post a Comment