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Page No 18.58:
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 |
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, 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 |
Page No 18.58:
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 month |
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. |
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, 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.
Page No 18.59:
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.
Answer:
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) |
|
|
Page No 18.59:
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.
Answer:
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.
Page No 18.59:
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.
Answer:
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.
Page No 18.59:
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.
Answer:
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
Page No 18.59:
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.
Answer:
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
Page No 18.59:
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.
Answer:
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) |
|
|
Page No 18.59:
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.
Answer:
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) |
|
|
Page No 18.60:
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.
Answer:
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
Page No 18.60:
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.
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 18.60:
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.
Answer:
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
Page No 18.60:
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.
Answer:
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
Page No 18.60:
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.
Answer:
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)
|
|
|
Page No 18.61:
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.
Answer:
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
Page No 18.61:
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.
Answer:
Books of X
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|
|
|||
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)
|
|
|
||
2017
|
|
|
|||
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)
|
|
2016
|
|
|
|
||
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)
|
|
|
||
|
|
|
|||
2017
|
|
|
|||
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.
|