Prepare an imaginary specimen of a promissory note.

Question

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Answer

A Promissory Note has two parties namely:

Maker: Maker is the person who makes the promise to pay the amount. It is a person who has availed the credit.
Payee: Payee is the person to whom payment is to be made. It is a person who has granted the credit.

In the example, M/s. Raj & Paul is the maker or a promisor and M/s. Tara Chand & Co. is the payee.

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Sales of ₹ 20,000 to Manoj were recorded as ₹ 2,000 in the Sales Book.
An amount of ₹ 25,000 spent for the extension of machinery has been debited to the Wages Account.
Discount received from Ram & Co. ₹ 350, has not been entered in the discount column of the Cash Book.
Goods of ₹ 3,000 sold to Mahesh were recorded in the Purchases Book.

2019
Jan. 6	Purchased goods from Henry for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque.
Jan. 15	Bought goods from Amit for ₹ 2,00,000 at terms 5% cash discount and 20% trade discount. Paid $\frac{3}{4}\text{th}$ of the amount in cash at the time of purchase.
Jan. 18	Sold goods to Sherpa at the list price of ₹ 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd.
Jan. 25	Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid $\frac{1}{4}\text{th}$ of the amount by cheque on Feb. 5th and 60% of the remainder on Feb. 15th in cash.

Overdraft as per Pass Book on 31-12-2012 ₹ 7,600.
Cheques deposited but not collected by the bank ₹ 8,560.
Incidental charges not recorded in Cash Book ₹ 80.
Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment.
Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200.
On 31st December, 2012 cash was deposited in bank ₹ 385 but the cashier debited the bank column with ₹ 485 by mistake.

2013		Amt (Rs.)
Feb-01	Cash in hand	75,000
Feb-05	Paid to Kartik	15,000
	Discount allowed by Kartik	500
Feb-08	Goods purchased	20,000
Feb-10	Received from Parth	49,000
	Discount allowed to Parth	1,000
Feb-16	Goods sold	20,000
Feb-21	Paid to Aroha	14,750
	Discount allowed by him	250
Feb-28	Paid wages for the month	25,000
	Paid in full settlement of Rs. 20,000 to Amit	19,500

2017
March 3	Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and $2\frac{1}{2}\%$ cash discount.
March 5	Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
March 6	Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade discount.
March 8	Nagpal returned one-fourth of the above goods.
March 10	Nagpal settled the account by paying cash under a discount of 5%.

Cheques of ₹ 20,000 were deposited in Bank on 27th March, 2017, out of which cheques of ₹ 5,000 were cleared on 1st April, 2017. Rest are not cleared.
On 28th March, 2017, cheques were issued amounting to ₹ 15,000, out of which cheques of ₹ 3,000 were presented in March, ₹ 4,000 on 2nd April and rest were not presented.
Cheques of ₹ 10,000 were deposited in Bank on 28th March, 2017, out of which cheques of ₹ 4,000 were cleared on 2nd April, 2017 and rest are dishonoured.
Interest on investment collected by bank does not appear in the Cash Book ₹ 800.
A B/R of ₹ 9,000 previously discounted from the bank was dishonoured on 30th March, 2017 but no intimation was received from the bank till 31st March.
Bank has debited ₹ 1,500 and credited ₹ 1,200 in our account.