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#### Question 1:

Calculate the due dates of the bills in the following cases:

 Date of the Bills Period I. 1st February, 2017 2 months II. 31st January, 2017 3 months III. 30th September, 2017 2 months IV. 30th September, 2017 3 months V. 29th December, 2017 2 months VI. 31st December, 2017 2 months VII. 15th July, 2017 30 days VIII 27th January, 2016 1 month

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, 2017 2 months 3 days April 04, 2017 II. January 31, 2017 3 months 3 days May 03, 2017 III. September 30, 2017 2 months 3 days December 03, 2017 IV. September 30, 2017 3 months 3 days January 02, 2018 V. December 29, 2017 2 months 3 days March 03, 2018 VI. December 31, 2017 2 months 3 days March 03, 2018 VII. July 15, 2017 30 days 3 days August 17, 2017 VIII. January 27, 2016 1 month 3 days March 01, 2016

#### Question 2:

Find out the due dates of the bills in the following cases:

 Date of the Bills Period I. 29th May, 2017 4 months II. 31st March, 2017 1 months III. 21st July, 2017 60 days IV. 14th May, 2017 90 days V. 28th January, 2016 1 month VI. 31st January, 2016 1 month Emergency holiday 22nd September.

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, 2017 4 months 3 days October 01, 2017 II. March 31, 2017 1 month 3 days May 03, 2017 III. July 21, 2017 60 days 3 days September 23, 2017 IV. May 14, 2017 90 days 3 days August 14, 2017 V. January 28, 2016 1 month 3 days March 02, 2016 VI. January 31, 2016 1 month 3 days March 03, 2016

Note: When due date falls on;

1. Public holiday (here October 2, 2017 and August 15, 2017), then due date is preceding date.

2. Emergency holiday (here September 22, 2017), then due date is succeeding date.

#### Question 3:

On 1st January, 2017, Ajay sold goods to Bhushan for ₹ 10,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay, Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.

 Books of Ajay  Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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)

#### Question 4:

On Jan. 1,2017, Tarun purchased goods from Arun for ₹ 20,000 and immediately drew a promissory note in favour of Arun payable after 1 month. Date of maturity of the promissory note was declared emergency holiday by the Government of India under the Negotiable Instrument Act 1881. Tarun met the promissory note according to the provisions of law.
Pass the necessary Journal entries in the books of Arun and Tarun.

 Books of Arun Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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, 2017), then due date is succeeding date i.e. February 05, 2017.

#### Question 5:

On Feb. 6, 2017 A sold goods for ₹ 1,00,000 to B. B paid 40% immediately on which A allowed a cash discount of ₹ 500. For the balance A drew a bill on B payable after 30 days. Due date of bill was a public holiday and the bill was met as per the provisions of Negotiable Instrument Act. Journalise the above transactions in the books of A and B.

 Books of A Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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, 2017), then due date is preceding date i.e. March 10, 2017.

#### Question 6(A):

Vishal sold goods for ₹ 7,000 to Manju on Jan. 5, 2017 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank @ 12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.

 Books of Vishal Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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

#### Question 6(B):

On 15th February, 2017, X sold goods to Y for ₹ 6,000. On the same day, Y accepted a bill drawn upon him by X for three months for ₹ 6,000. X immediately discounted the bill at 15% p.a. at his bank and Y met the bill on maturity. Make Journal entries in the books of both the parties.

 Books of X Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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

#### Question 7:

B owed ₹ 5,100 to A. On 15th January, 2017, he accepted a bill for ₹ 5,000 for two months drawn by A in full settlement of his debt. On 18th January, 2017, A endorsed the bill to his creditor C. The bill was duly met on the date of maturity. Pass Journal entries in the books of A, B and C.

 Books of A Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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) 2017 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)

#### Question 8:

On 10th January, 2017, A sells goods to B for ₹ 12,000. On that date, B accepted a bill drawn upon him by A at two months for ₹ 12,000. A retains the bill till due date and on due date sends the bill to the Banker for collection. In due course, A receives the information from the Bank that the bill has been duly met.
Pass Journal Entries in the books of A and B.

 Books of A Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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)

#### Question 9:

On Jan. 15, 2017, Kusum sold goods for ₹ 30,000 to Pushpa and drew upon her three bills of exchanges of ₹ 10,000 each payable after one month, two months and three months respectively. The first bill was retained by Kusum till its maturity. The second bill was endorsed by her in favour of her creditor Khushboo and the third bill was discounted by her immediately @ 6% p.a. All the bills were met by Pushpa, Journalise the above transactions in the books of Kusum and Pushpa.

 Books of Kusum Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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

#### Question 10:

X draws on Y a bill for ₹ 4,000 which was duly accepted by Y. Y meets the bill on its due date. Show what entries would be passed in the books of X and Y under each of the following circumstances:
(i) If X retains the bill till due date.
(ii) If X discounts the same with his banker paying ₹ 100 for discount.
(iii) If X endorses the same to his creditor Z, in full settlement of his debt of ₹ 4,080.
(iv) If X sends the bill to his banker for collection.

 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)

#### Question 11:

X made the following sales to Y:

 Date Amount (₹) Jan. 01, 2017 20,000 Jan. 08, 2017 25,000 Jan. 10, 2017 10,000 Jan. 15, 2017 40,000

For all the sales X drew bills on Y payable after 60 days. Bill drawn on Jan. 01, 2017 was retained by X with him till its due date. The bill drawn on Jan. 08, 2017 was discounted by X from the bank at 9% p.a. The bill drawn on Jan. 10, 2017 was endorsed by X to his creditor Z in full settlement of ₹ 10,400. On March 12, 2017 X sent the bill drawn on Jan. 15, 2017 to his bank for collection. All the bills were met by Y on due dates.
Pass necessary journal entries in the books of X and Y and prepare Y' s account in the books of X and X's account in the books of Y.

 Books of X Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 2017 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) 2017 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) 2017 2017 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

#### Question 12:

On January 1, 2017, Ajay sold goods to Balbir for ₹ 10,000 at a discount of 20%. On that date, Balbir accepted a bill, drawn on him by Ajay for ₹ 8,000 payable 3 months after sight. Having surplus funds, Balbir paid off the bill on 4th March, 2017 and was allowed a rebate of 18% per annum. Show Journal entries in the books of Ajay and Balbir.

 Book of Ajay Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2017 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) 2017 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

#### Question 13:

On 17th April, 2016, X sold goods to Y for ₹ 80,000 and draws a bill for 2 months upon Y for the amount due. Y accepted the bill and returned it to X. On due date the bill became dishonoured and X paid ₹ 400 as Noting Charges. Fifteen days later Y pays the amount due to X. Pass Journal entries in the books of both the parties.

 Books of X Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2016 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) 2016 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)

#### Question 14(A):

On 1st April, 2016, B accepts a bill drawn by A at three months for ₹ 8,000 in payment of debt. On the due date the acceptance is dishonoured and A gets the bill noted paying ₹ 100. On 4th July, 2016 A draws a new bill payable after 73 days provided interest is paid in cash @ 15% p.a. To this B is agreeable. The bill is met on maturity.
Record these transactions in the Journal of both the parties.

 Books of A Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2016 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) 2016 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

#### Question 14(B):

On 15th October, 2016, Y purchased goods worth ₹ 75,000 from X, and accepted a three months bill for this amount drawn by X. On the due date, it was dishonoured. Noting charges paid by X ₹ 600. On 18th January, 2017, Y requested X for renewal of the bill for another two months, for which X agrees, provided that interest is paid @ 15% p.a. in cash. Make Journal entries of these transactions in the books of X and Y.