The journal entries for the given transactions in K. Katrak's books are provided.
To prepare journal entries for the given transactions, we need to analyze each transaction and determine the accounts that are affected.
Transaction 1: Katrak's acceptance to Basu
Debit: Basu (Accounts Receivable) - Rs. 2,500
Credit: Katrak (Acceptances Payable) - Rs. 2,500
Transaction 2: G. Gupta's acceptance dishonored
Debit: M. Mehta (Accounts Payable) - Rs. 4,000
Debit: Noting Charges - Rs. 20
Credit: Katrak (Acceptances Receivable) - Rs. 4,000
Credit: M. Mehta (Accounts Receivable) - Rs. 20
Transaction 3: D. Dalal retires a bill
Debit: D. Dalal (Accounts Payable) - Rs. 2,000
Credit: Katrak (Accounts Receivable) - Rs. 2,000
Transaction 4: Katrak's acceptance to Patel
Debit: Patel (Acceptances Payable) - Rs. 5,000
Credit: Katrak (Acceptances Receivable) - Rs. 5,000
These journal entries reflect the recording of each transaction in K. Katrak's books.
Complete question:
Prepare journal entries for the following transactions in K. Katrak's books.
Katrak's acceptarice to Basu for Rs. 2,500 discharged by a cash payment of Rs. 1,000 and a new bill for the balance plus Rs. 50 for interest.
G. Gupta's acceptance for Rs. 4,000 which was endorsed by Katrak to M. Mehta was dishonoured. Mehta paid Rs. 20 noting charges. Bill withdrawn against cheque.
(iii) D. Dalal retires a bill for Rs. 2,000 drawn on him by Katrak for Rs. 10 discount.
(iv) Katrak's acceptance to Patel for Rs. 5,000 discharged by Patel Mody's acceptance to Katrak for a similar amount.