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Page No 17.66:

Question 1:

Question

Answer:

Due Date of Bill = Date of Bill Drawn + Period + Grace Days
 

S. No.
Date of Bill Drawn
(1)
Period
(2)
Grace Days
(3)
Due Date
(1 + 2 + 3)
I.
February 01, 2009
2 months
3 days
April 04, 2009
II.
January 31, 2009
3 months
3 days
May 03, 2009
III.
September 30, 2009
2 months
3 days
December 03, 2009
IV.
September 30, 2009
3 months
3 days
January 02, 2010
V.
December 29, 2009
2 months
3 days
March 03, 2010
VI.
December 31, 2009
2 months
3 days
March 03, 2010
VII.
July 15, 2009
30 days
3 days
August 17, 2009
VIII.
January 27, 2008
1 month
3 days
March 01, 2008

Page No 17.66:

Answer:

Due Date of Bill = Date of Bill Drawn + Period + Grace Days
 

S. No.
Date of Bill Drawn
(1)
Period
(2)
Grace Days
(3)
Due Date
(1 + 2 + 3)
I.
May 29, 2009
4 months
3 days
October 01, 2009
II.
March 31, 2009
1 month
3 days
May 03, 2009
III.
July 21, 2009
60 days
3 days
September 23, 2009
IV.
May 14, 2009
90 days
3 days
August 14, 2009
V.
January 28, 2008
1 month
3 days
March 02, 2008
VI.
January 31, 2008
1 month
3 days
March 03, 2008

Note: When due date falls on;

1. Public holiday (here October 2, 2009 and August 15, 2009), then due date is preceding date.

2. Emergency holiday (here September 22, 2009), then due date is succeeding date.

Page No 17.66:

Question 3:

Question

Answer:

Books of Ajay 
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 01
Bhushan Dr.  
10,000
 
 
  To Sales A/c    
 
10,000
 
(Goods sold to Bhushan)    
 
 
 
     
 
 
Jan. 01
Bills Receivable A/c Dr.  
10,000
 
 
  To Bhushan    
 
10,000
 
(Bhushan accepted  the bill)    
 
 
 
     
 
 
Mar. 04
Cash A/c Dr.  
10,000
 
 
  To Bills Receivable A/c    
 
10,000
 
(Bill honoured on maturity)    
 
 
 
Books of Bhushan
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 01
Purchases A/c Dr.  
10,000
 
 
  To Ajay    
 
10,000
 
(Goods purchased from Ajay)    
 
 
 
     
 
 
Jan. 01
Ajay Dr.  
10,000
 
 
  To Bills Payable A/c    
 
10,000
 
(Bill drawn by Ajay, accepted)    
 
 
 
     
 
 
Mar. 04
Bills Payable A/c Dr.  
10,000
 
 
  To Cash A/c    
 
10,000
 
(Bill honoured on maturity)    
 
 

Page No 17.66:

Question 4:

Question

Answer:

Books of Arun
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 01
Tarun Dr.  
20,000
 
 
  To Sales A/c    
 
20,000
 
(Goods sold to Tarun)    
 
 
 
     
 
 
Jan. 01
Bills Receivable A/c Dr.  
20,000
 
 
  To Tarun    
 
20,000
 
(Tarun accepted the promissory note)    
 
 
 
     
 
 
Feb. 05
Cash A/c Dr.  
20,000
 
 
  To Bills Receivable A/c    
 
20,000
 
(Promissory note honoured on maturity)    
 
 
 
Books of Tarun
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 01
Purchases A/c Dr.  
20,000
 
 
  To Arun    
 
20,000
 
(Goods purchased from Arun)    
 
 
 
     
 
 
Jan. 01
Arun Dr.  
20,000
 
 
  To Bills Payable A/c    
 
20,000
 
(Promissory note drawn by Arun, accepted)    
 
 
 
     
 
 
Feb. 05
Bills Payable A/c Dr.  
20,000
 
 
  To Cash A/c    
 
20,000
 
(Promissory note honoured on maturity)    
 
 

Note: When due date falls on Emergency holiday (here February 04, 2006), then due date is succeeding date i.e. February 05, 2006.



Page No 17.67:

Question 5:

Question

Answer:

Books of A
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Feb. 06
B Dr.  
1,00,000
 
 
  To Sales A/c    
 
1,00,000
 
(Goods sold to B)    
 
 
 
     
 
 
Feb. 06
Cash A/c Dr.  
39,500
 
 
Discount Allowed A/c Dr.  
500
 
 
Bills Receivable A/c Dr.  
60,000
 
 
  To B    
 
1,00,000
 
(B accepted the bill)    
 
 
 
     
 
 
Mar. 10
Cash A/c Dr.  
60,000
 
 
  To Bills Receivable A/c    
 
60,000
 
(Bill honoured on maturity)    
 
 
                                                    
Books of B
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Feb. 06
Purchases A/c Dr.  
1,00,000
 
 
  To A    
 
1,00,000
 
(Goods purchased from A)    
 
 
 
     
 
 
Feb. 06
A Dr.  
1,00,000
 
 
  To Cash A/c    
 
39,500
 
  To Discount Received A/c    
 
500
 
  To Bills Payable A/c    
 
60,000
 
(Bill drawn by A, accepted)    
 
 
 
     
 
 
Mar. 10
Bills Payable A/c Dr.  
60,000
 
 
  To Cash A/c    
 
60,000
 
(Bill honoured on maturity)    
 
 

Note: When due date falls on Public holiday (here March 11, 2006), then due date is preceding date i.e. March 10, 2006. 

Page No 17.67:

Question 6 (A):

Answer:

Books of Vishal
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 05
Manju Dr.  
7,000
 
 
  To Sales A/c    
 
7,000
 
(Goods sold to Manju)    
 
 
 
     
 
 
Jan. 05
Bills Receivable A/c Dr.  
7,000
 
 
  To Manju    
 
7,000
 
(Manju accepted the bill)    
 
 
 
     
 
 
Jan. 05
Bank A/c Dr.  
6,860
 
 
Discounting Charges A/c Dr.  
140
 
 
  To Bills Receivable A/c    
 
7,000
 
(Bill discounted with bank @ 12% p.a. for 2 months)    
 
 
                                                                 
Books of Manju
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 05
Purchases A/c Dr.  
7,000
 
 
  To Vishal    
 
7,000
 
(Goods purchased from Vishal)    
 
 
 
     
 
 
Jan. 05
Vishal Dr.  
7,000
 
 
  To Bills Payable A/c    
 
7,000
 
(Bill drawn by Vishal, accepted)    
 
 
 
     
 
 
Mar. 08
Bills Payable A/c Dr.  
7,000
 
 
  To Cash A/c    
 
7,000
 
(Bill honoured on maturity)    
 
 

Working Note:

Calculation of Discounting Charges

Discounting Charges= 7,000×12100×212=Rs 140


 

Page No 17.67:

Question 6 (B):

Question

Answer:

Books of X
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Feb. 15
Y Dr.  
6,000
 
 
  To Sales A/c    
 
6,000
 
(Goods sold to Y)    
 
 
 
     
 
 
Feb. 15
Bills Receivable A/c Dr.  
6,000
 
 
  To Y    
 
6,000
 
(Y accepted the bill)    
 
 
 
     
 
 
Feb. 15
Bank A/c Dr.  
5,775
 
 
Discounting Charges A/c Dr.  
225
 
 
  To Bills Receivable A/c    
 
6,000
 
(Bill discounted with bank @ 15% p.a. for 3 months)    
 
 
 
Books of Y
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Feb. 15
Purchases A/c Dr.  
6,000
 
 
  To X    
 
6,000
 
(Goods purchased from X)    
 
 
 
     
 
 
Feb. 15
X Dr.  
6,000
 
 
  To Bills Payable A/c    
 
6,000
 
(Bill drawn by X, accepted)    
 
 
 
     
 
 
May 18
Bills Payable A/c Dr.  
6,000
 
 
  To Cash A/c    
 
6,000
 
(Bill honoured on maturity)    
 
 

Working Note:

Calculation of Discounting Charges

Discounting Charges= 6,000×15100×312=Rs 225
 

Page No 17.67:

Question 7:

Answer:

Books of A
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan.15
Bills Receivable A/c Dr.  
5,000
 
 
Discount Allowed A/c Dr.  
100
 
 
  To B    
 
5,100
 
(B accepted the bill)    
 
 
 
     
 
 
Jan. 18
C Dr.  
5,000
 
 
  To Bills Receivable A/c    
 
5,000
 
(Bill endorsed in favour of C)    
 
 
                                                          
Books of B
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan.15
A Dr.  
5,100
 
 
  To Bills Payable A/c    
 
5,000
 
  To Discount Received A/c    
 
100
 
(Bill drawn by A, accepted)    
 
 
 
     
 
 
Mar. 18
Bills Payable A/c Dr.  
5,000
 
 
  To Cash A/c    
 
5,000
 
(Bill honoured on maturity)    
 
 
 
Books of C
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 18
Bills Receivable A/c Dr.  
5,000
 
 
  To A    
 
5,000
 
(Bills receivable was received from A)    
 
 
 
     
 
 
Mar. 18
Cash A/c Dr.  
5,000
 
 
  To Bills Receivable A/c    
 
5,000
 
(Bill honoured on maturity)    
 
 

Page No 17.67:

Question 8:

Question

Answer:

Books of A
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 10
B Dr.  
12,000
 
 
  To Sales A/c    
 
12,000
 
(Goods sold to B)    
 
 
 
     
 
 
Jan. 10
Bills Receivable A/c Dr.  
12,000
 
 
  To B    
 
12,000
 
(B accepted the bill)    
 
 
 
     
 
 
Mar. 13
Bill Sent for Collection A/c Dr.  
12,000
 
 
  To Bills Receivable A/c    
 
12,000
 
(Bills sent to bank for collection)    
 
 
 
     
 
 
Mar. 13
Bank A/c Dr.  
12,000
 
 
  To Bills Sent for Collection A/c    
 
12,000
 
(Bill honoured on maturity)    
 
 
 
Books of B
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 10
Purchases A/c Dr.  
12,000
 
 
  To A    
 
12,000
 
(Goods purchased from A)    
 
 
 
     
 
 
Jan .10
A Dr.  
12,000
 
 
  To Bills Payable A/c    
 
12,000
 
(Bill drawn by A, accepted)    
 
 
 
     
 
 
Mar. 13
Bills Payable A/c Dr.  
12,000
 
 
  To Cash A/c    
 
12,000
 
(Bill honoured on maturity)    
 
 

Page No 17.67:

Question 9:

Question

Answer:

Books of Kusum
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 15
Pushpa Dr.  
30,000
 
 
  To Sales A/c    
 
30,000
 
(Goods sold to Pushpa)    
 
 
 
     
 
 
Jan. 15
Bills Receivable A/c (1) Dr.  
10,000
 
 
Bills Receivable A/c (2) Dr.  
10,000
 
 
Bills Receivable A/c (3) Dr.  
10,000
 
 
  To Pushpa    
 
30,000
 
(Pushpa accepted the bills)    
 
 
 
     
 
 
Jan. 15
Khushboo Dr.  
10,000
 
 
  To Bills Receivable A/c (2)    
 
10,000
 
(Bill endorsed in favour of Khushboo)    
 
 
 
     
 
 
Jan. 15
Bank A/c Dr.  
9,850
 
 
Discounting Charges A/c Dr.  
150
 
 
  To Bills Receivable A/c (3)    
 
10,000
 
(Bill discounted with the bank @ 6% p.a. for 3 months)    
 
 
 
     
 
 
Feb. 18
Cash A/c Dr.  
10,000
 
 
  To Bills Receivable A/c (1)    
 
10,000
 
(Bill honoured on maturity)    
 
 

 

Books of Pushpa
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 15
Purchases A/c Dr.  
30,000
 
 
  To Kusum    
 
30,000
 
(Goods purchased from Kusum)    
 
 
 
     
 
 
Jan. 15
Kusum Dr.  
30,000
 
 
  To Bills Payable A/c (1)    
 
10,000
 
  To Bills Payable A/c (2)    
 
10,000
 
  To Bills Payable A/c (3)    
 
10,000
 
(Bills drawn by Kusum, accepted)    
 
 
 
     
 
 
Feb. 18
Bills Payable A/c Dr.  
10,000
 
 
  To Cash A/c    
 
10,000
 
(Bill (1) honoured on maturity)    
 
 
 
     
 
 
Mar. 18
Bills Payable A/c (2) Dr.  
10,000
 
 
  To Cash A/c    
 
10,000
 
(Bill (2) honoured on maturity)    
 
 
 
     
 
 
Apr. 18
Bills Payable A/c (3) Dr.  
10,000
 
 
  To Cash A/c    
 
10,000
  (Bill (3) honoured on maturity)    
 
 


Working Note:

Calculation of Discounting Charges

Page No 17.67:

Question 10:

Question

Answer:

Books of X
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Bill drawn by X    
 
 
 
Bills Receivable A/c Dr.  
4,000
 
 
  To Y    
 
4,000
 
(Y accepted the bill)    
 
 
 
     
 
 
 
Case (i): Bill retained till maturity    
 
 
 
Cash A/c Dr.  
4,000
 
 
  To Bills Receivable A/c    
 
4,000
 
(Bill honoued on maturity)    
 
 
 
     
 
 
 
Case (ii): Bill discounted with bank    
 
 
 
Bank A/c Dr.  
3,900
 
 
Discounting Charges A/c Dr.  
100
 
 
  To Bills Receivable A/c    
 
4,000
 
(Bill discounted with the bank)    
 
 
 
     
 
 
 
Case (iii): Bill endorsed to Z    
 
 
 
Z Dr.  
4,080
 
 
  To Bills Receivable A/c    
 
4,000
 
  To Discount Received A/c    
 
80
 
(Bill endorsed in favour of Z)    
 
 
 
     
 
 
 
Case (iv): Bill sent to bank for collection    
 
 
 
Bills Sent for Collection A/c Dr.  
4,000
 
 
  To Bills Receivable A/c    
 
4,000
 
(Bill sent to bank for collection)    
 
 
       
 
 
 
Bank A/c Dr.  
4,000
 
 
  To Bill Sent for Collection A/c    
 
4,000
 
(Bill honoured on maturity)    
 
 
                                                                     
Books of Y
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Bill accepted by Y    
 
 
 
X Dr.  
4,000
 
 
  To Bills Payable A/c    
 
4,000
 
(Bill drawn by Y, accepted)    
 
 
 
     
 
 
 
Same entry will be passed in all the four cases    
 
 
 
Bills Payable A/c Dr.  
4,000
 
 
  To Cash A/c    
 
4,000
 
(Bill honoured on maturity)    
 
 



Page No 17.68:

Question 11:

Question

Answer:

Books of X
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 01
Y Dr.  
20,000
 
 
  To Sales A/c    
 
20,000
 
(Goods sold to Y)    
 
 
 
     
 
 
Jan. 01
Bills Receivable A/c (1) Dr.  
20,000
 
 
  To Y    
 
20,000
 
(Y accepted the bill)    
 
 
       
 
 
Jan. 08
Y Dr.  
25,000
 
 
  To Sales A/c    
 
25,000
  (Goods sold to Y)    
 
 
       
 
 
Jan. 08
Bills Receivable A/c (2) Dr.  
25,000
 
 
  To Y    
 
25,000
 
(Y accepted the bill)    
 
 
 
     
 
 
Jan. 08
Bank A/c Dr.  
24,630
 
 
Discounting Charges A/c Dr.  
370
 
 
  To Bills Receivable A/c (2)    
 
25,000
 
(Bill discounted with the bank @ 9% p.a. for 60 days)    
 
 
 
     
 
 
Jan. 10
Y Dr.  
10,000
 
 
  To Sales A/c    
 
10,000
  (Goods sold to Y)    
 
 
       
 
 
Jan.10
Bills Receivable A/c (3) Dr.  
10,000
 
 
  To Y    
 
10,000
 
(Y accepted the bill)    
 
 
 
     
 
 
Jan.10
Z Dr.  
10,400
 
 
  To Bills Receivable A/c (3)    
 
10,000
 
  To Discount Received A/c    
 
400
 
(Bill endorsed in favour of Z)    
 
 
 
     
 
 
Jan. 15
Y Dr.  
40,000
 
 
  To Sales A/c    
 
40,000
  (Goods sold to Y)    
 
 
       
 
 
Jan.15
Bills Receivable A/c (4) Dr.  
40,000
 
 
  To Y    
 
40,000
 
(Y accepted the bill)    
 
 
 
     
 
 
Mar. 05
Cash A/c Dr.  
20,000
 
 
  To Bills Receivable A/c (1)    
 
20,000
 
(Bill honoured on maturity)    
 
 
 
     
 
 
Mar. 12
Bill Sent for Collection A/c Dr.  
40,000
 
 
  To Bills Receivable A/c (4)    
 
40,000
 
(Bill sent to bank for collection)    
 
 
 
     
 
 
Mar. 19
Bank A/c Dr.  
40,000
 
 
  To Bills for Collection A/c    
 
40,000
 
(Bill honoured on maturity)    
 
 
 
Y’s  Account
Dr.
 
Cr.
Date
Particulars
J.F.
Amount
(Rs)
Date
Particulars
J.F.
Amount
(Rs)
2006
   
 
2006
   
 
Jan. 01
Sales A/c  
20,000
Jan. 01
Bills Receivable A/c (1)  
20,000
Jan. 08
Sales A/c  
25,000
Jan. 08
Bills Receivable A/c (2)  
25,000
Jan. 10
Sales A/c  
10,000
Jan. 10
Bills Receivable A/c (3)  
10,000
Jan. 15
Sales A/c  
40,000
Jan. 15
Bills Receivable A/c (4)  
40,000
 
   
95,000
 
   
95,000
               
 
Books of Y
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Jan. 01
Purchases A/c Dr.  
20,000
 
 
  To X    
 
20,000
 
(Goods purchased from X)    
 
 
 
     
 
 
Jan. 01
X Dr.  
20,000
 
 
  To Bills Payable A/c (1)    
 
20,000
 
(Bill drawn by X, accepted)    
 
 
       
 
 
Jan. 08
Purchases A/c Dr.  
25,000
 
 
  To X    
 
25,000
 
(Goods purchased from X)    
 
 
 
     
 
 
Jan. 08
X Dr.  
20,000
 
 
  To Bills Payable A/c (2)    
 
20,000
 
(Bill drawn by X, accepted)    
 
 
 
     
 
 
Jan. 10
Purchases A/c Dr.  
10,000
 
 
  To X    
 
10,000
 
(Goods purchased from X)    
 
 
 
     
 
 
Jan.10
X Dr.  
10,000
 
 
  To Bills Payable A/c (3)    
 
10,000
 
(Bill drawn by X, accepted)    
 
 
 
     
 
 
Jan. 15
Purchases A/c Dr.  
40,000
 
 
  To X    
 
40,000
 
(Goods purchased from X)    
 
 
 
     
 
 
Jan. 15
X Dr.  
40,000
 
 
  To Bills Payable A/c (4)    
 
40,000
 
(Bill drawn by X, accepted)    
 
 
 
     
 
 
Mar. 05
Bills Payable A/c (1) Dr.  
20,000
 
 
  To Cash A/c    
 
20,000
 
(Bill honoured on maturity)    
 
 
 
     
 
 
Mar. 12
Bills Payable A/c (2) Dr.  
25,000
 
 
  To Cash A/c    
 
25,000
 
(Bill honoured on maturity)    
 
 
 
     
 
 
Mar.14
Bills Payable A/c (3) Dr.  
10,000
 
 
  To Cash A/c    
 
10,000
 
(Bill honoured on maturity)    
 
 
 
     
 
 
Mar.19
Bills Payable A/c (4) Dr.  
40,000
 
 
  To Cash A/c    
 
40,000
 
(Bill honoured on maturity)    
 
 
 
X’s  Account
Dr.
 
Cr.
Date
Particulars
J.F.
Amount
(Rs)
Date
Particulars
J.F.
Amount
(Rs)
2006
   
 
2006
   
 
Jan. 01
Bills Payable A/c (1)  
20,000
Jan. 01
Purchases A/c  
20,000
Jan. 08
Bills Payable A/c (2)  
25,000
Jan. 08
Purchases A/c  
25,000
Jan. 10
Bills Payable A/c (3)  
10,000
Jan. 10
Purchases A/c  
10,000
Jan. 15
Bills Payable A/c (4)  
40,000
Jan. 15
Purchases A/c  
40,000
 
   
95,000
 
   
95,000
               

Working Note:

Calculation of Discounting Charges

Discounting Charges= 25,000×9100×60365=Rs 370 

Page No 17.68:

Question 12:

Answer:

Book of Ajay
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 01
Balbir Dr.  
8,000
 
 
Discount Allowed A/c    
2,000
 
 
  To Sales A/c    
 
10,000
 
(Goods sold to Balbir)    
 
 
 
     
 
 
Jan. 01
Bills Receivable A/c Dr.  
8,000
 
 
  To Balbir    
 
8,000
 
(Bill accepted by Balbir)    
 
 
 
     
 
 
Mar. 04
Cash A/c Dr.  
7,880
 
 
Rebate A/c Dr.  
120
 
 
  To Bills Receivable A/c    
 
8,000
 
(Bill retired under the rebate of 18% p.a. for one month)    
 
 
 
Books of Balbir
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2012
 
 
 
 
 
Jan. 01
Purchases A/c Dr.  
8,000
 
 
  To Ajay    
 
8,000
 
(Goods purchased from Ajay)    
 
 
 
     
 
 
Jan.01
Ajay Dr.  
8,000
 
 
  To Bills Payable A/c    
 
8,000
 
(Bill drawn by Ajay, accepted)    
 
 
 
     
 
 
Mar. 04
Bills Payable A/c Dr.  
8,000
 
 
  To Cash A/c    
 
7,880
 
  To Rebate A/c    
 
120
 
(Bill retired under the rebate of 18% p.a. for one month)    
 
 

Working Note:

Calculation of amount of Rebate

 Amount of Rebate= 8,000×18100×112=Rs 120 

Page No 17.68:

Question 13:

Question

Answer:

Books of X
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2011
 
 
 
 
 
Apr. 17
Y
Dr.
 
80,000
 
 
  To Sales A/c
   
 
80,000
 
(Goods sold to Y)
   
 
 
 
     
 
 
Apr. 17
Bills Receivable A/c
Dr.
 
80,000
 
 
  To Y
   
 
80,000
 
(Y accepted the bill)
   
 
 
 
     
 
 
June 20
Y
Dr.
 
80,400
 
 
  To Bills Receivable A/c
   
 
80,000
 
  To Cash A/c
   
 
400
 
(Bill dishonoured on due date and noting charges received)
   
 
 
 
     
 
 
July 05
Cash A/c
Dr.
 
80,400
 
 
  To Y
   
 
80,400
 
(Cash received from Y)
   
 
 
                                               
Books of Y
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2011
 
 
 
 
 
Apr. 17
Purchases A/c
Dr.
 
80,000
 
 
  To X
   
 
80,000
 
(Goods purchased from X)
   
 
 
 
     
 
 
Apr. 17
X
Dr.
 
80,000
 
 
  To Bills Payable A/c
   
 
80,000
 
(Bill drawn by X, accepted)
   
 
 
 
     
 
 
June 20
Bills Payable A/c
Dr.
 
80,000
 
 
Noting Charges A/c
Dr.
 
400
 
 
  To X
   
 
80,400
 
(Bills dishonoured  on due date and notice charged paid)
   
 
 
 
     
 
 
July 05
X
Dr.
 
80,400
 
 
  To Cash A/c
   
 
80,400
 
(Cash paid to X)
   
 
 

Page No 17.68:

Question 14 (A):

Question

Answer:

Books of A
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
     
 
 
Apr. 01
Bills Receivable A/c
Dr.
 
8,000
 
 
  To B
   
 
8,000
 
(B accepted the bill)
   
 
 
 
     
 
 
July 04
B
Dr.
 
8,100
 
 
  To Bills Receivable A/c
   
 
8,000
 
  To Cash A/c
   
 
100
 
(Bill dishonoured on due date and noting charges received)
   
 
 
 
     
 
 
July 04
B
Dr.
 
243
 
 
  To Interest A/c
   
 
243
 
(Interest due to be received)
   
 
 
 
     
 
 
July 04
Cash A/c
Dr.
 
243
 
 
Bills Receivable A/c
Dr.
 
8,100
 
 
  To B
   
 
8,343
 
(B accepted the new bill)
   
 
 
 
     
 
 
Sept. 18
Cash
Dr.
 
8,100
 
 
  To Bills Receivable A/c
   
 
8,100
 
(Bill honoured on maturity)
   
 
 
                                                                         
Books of B
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2006
 
 
 
 
 
Apr. 01
A
Dr.
 
8,000
 
 
  To Bills Payable A/c
   
 
8,000
 
(Bill drawn by A, accepted)
   
 
 
 
     
 
 
July 04
Bills Payable A/c
Dr.
 
8,000
 
 
Noting Charges A/c
Dr.
 
100
 
 
  To A
   
 
8,100
 
(Bill dishonoured on due date and noting charges paid)
   
 
 
 
     
 
 
July 04
Interest A/c
Dr.
 
243
 
 
  To A
   
 
243
 
(Interest due to be paid)
   
 
 
 
     
 
 
July 04
A
Dr.
 
8,343
 
 
  To Cash A/c
   
 
243
 
  To Bills Payable A/c (New)
   
 
8,100
 
(New bill drawn by A, accepted)
   
 
 
 
     
 
 
Sept. 18
Bills Payable A/c
Dr.
 
8,100
 
 
  To Cash A/c
   
 
8,100
 
(Bill honoured on maturity)
   
 
 

Working Note:

Calculation of amount of Interest

Amount of Interest= 8,100×15100×73365=Rs 243

Page No 17.68:

Question 14 (B):

Question

Answer:

Books of X
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2011
     
 
 
Oct. 15
Y
Dr.
 
75,000
 
 
  To Sales A/c
   
 
75,000
 
(Goods sold to Y)
   
 
 
 
     
 
 
Oct. 15
Bills Receivable A/c
Dr.
 
75,000
 
 
  To Y
   
 
75,000
 
(Y accepted the bill)
   
 
 
2012
     
 
 
Jan. 18
Y
Dr.
 
75,600
 
 
  To Bills Receivable A/c
   
 
75,000
 
  To Cash A/c
   
 
600
 
(Bill dishonoured on due date and noting charges paid)
   
 
 
 
     
 
 
Jan. 18
Y
Dr.
 
1,890
 
 
  To Interest A/c
   
 
1,890
 
(Interest due to be received)
   
 
 
 
     
 
 
Jan. 18
Cash A/c
Dr.
 
1,890
 
 
Bills Receivable A/c
Dr.
 
75,600
 
 
  To Y
   
 
77,490
 
(Y accepted the new bill)
   
 
 
 
     
 
 
Mar. 21
Cash
Dr.
 
75,600
 
 
  To Bills Receivable A/c
   
 
75,600
 
(Bill honoured on maturity)
   
 
 

 

Books of Y
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2011
 
 
 
 
 
Oct. 15
Purchases A/c
Dr.
 
75,000
 
 
  To X
   
 
75,000
 
(Goods purchased from X)
   
 
 
 
     
 
 
Oct. 15
X
Dr.
 
75,000
 
 
  To Bills Payable A/c
   
 
75,000
 
(Bill drawn by X, accepted)
   
 
 
 
     
 
 
2012
     
 
 
Jan. 18
Bills Payable A/c
Dr.
 
75,000
 
 
Noting Charges A/c
Dr.
 
600
 
 
  To X
   
 
75,600
 
(Bill dishonoured on due date and noting charges paid)
   
 
 
 
     
 
 
Jan. 18
Interest A/c
Dr.
 
1,890
 
 
  To X
   
 
1,890
 
(Interest due to be paid)
   
 
 
 
     
 
 
Jan. 18
X
Dr.
 
77,490
 
 
  To Cash A/c
   
 
1,890
 
  To Bills Payable A/c
   
 
75,600
 
(New bill drawn by X, accepted)