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Page No 16.34:

Answer:

Date of Bill

Tenure

Calculation

Due Date

(i) December 01, 2015

60 Days

30 (December) + 30 (January) + 3 days of grace

February 02, 2016

(ii) April 30, 2016

2 Months

2 Months from April 30, 2016 would be June 30, 2016 + 3 days of grace

July 03, 2016

(iii) January 28, 2017

1 Month

1 Month from January 28, 2017 would be February 28, 2017 + 3 days of grace

March 03, 2017

(iv) November 23, 2016

2 Months

2 Months from November 23, 2016 would be January 23, 2017 + 3 days of grace

January 26, 2017, but it is a national holiday so, due date would be one day before i.e., January 25, 2017

(v) May 29, 2017

4 Months

4 Months from May 29, 2017 would be September 29, 2017 + 3 days of grace

October 02, 2017 but it is a national holiday so, due date would be one day before i.e., October 01, 2017

Note: Due date of (iii) is mismatched from the book. As per our solution, it is March 03, 2017 and it is March 01, 2017 as per book.

Page No 16.34:

Answer:

Books of Manish

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Kumar

Dr.

 

10,000

 

 

To Sales A/c

 

 

10,000

 

(Goods sold to Kumar)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

10,000

 

 

To Kumar

 

 

10,000

 

(Kumar accepted the bill)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

10,000

 

 

To Bills Receivable A/c

 

 

10,000

 

(Bill honoured on maturity)

 

 

 

 

 

 

 

 

 

 

Books of Kumar

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Purchases A/c

Dr.

 

10,000

 

 

To Manish

 

 

10,000

 

(Goods bought from Manish)

 

 

 

 

 

 

 

 

 

Manish

Dr.

 

10,000

 

 

To Bills Payable A/c

 

 

10,000

 

(Bill drawn by Manish accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

10,000

 

 

To Cash A/c

 

 

10,000

 

(Acceptance discharged by paying in Cash)

 

 

 

 

 

 

 

 

 

Page No 16.34:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.01

B

Dr.

 

5,000

 

 

To Sales A/c

 

 

5,000

 

(Goods sold to B)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

5,000

 

 

To B

 

 

5,000

 

(B accepted the bill)

 

 

 

 

 

 

 

 

Apr.04

Cash A/c

Dr.

 

5,000

 

 

To Bills Receivable A/c

 

 

5,000

 

(Amount of bill received on its maturity)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

5,000

 

 

To A

 

 

5,000

 

(Goods bought from A)

 

 

 

 

 

 

 

 

Jan.01

A

Dr.

 

5,000

 

 

To Bills Payable A/c

 

 

5,000

 

(Bill drawn by A accepted)

 

 

 

 

 

 

 

 

Apr.04

Bills Payable A/c

Dr.

 

5,000

 

 

To Cash A/c

 

 

5,000

 

(Payment of bill was made on its due date )

 

 

 

 

 

 

 

 

 

Page No 16.34:

Question 4:

Vinod sold goods to Darbara Singh for ₹ 1,000. He drew on the latter a bill for the amount payable 3 months after date.He discounted the bill with his bankers for ₹ 990. On maturity, the bill is duly met. Make the Journal entries in the books of Vinod and Darbara Singh.

Answer:

Books of Vinod

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Darbara Singh

Dr.

 

1,000

 

 

To Sales A/c

 

 

1,000

 

(Goods sold to Darbara Singh)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To Darbara Singh

 

 

1,000

 

(Bills accepted by Darbara Singh)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

990

 

 

Discount Charges A/c

Dr.

 

10

 

 

To Bills Receivable A/c

 

 

1,000

 

(Darbara Singh’s acceptance discounted at 9% p.a. for 3 month)

 

 

 

 

 

 

 

 

 

Books of Darbara Singh

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Purchases A/c

Dr.

 

1,000

 

 

To Vinod

 

 

1,000

 

(Goods bought from Vinod )

 

 

 

 

 

 

 

 

 

Vinod

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by Vinod accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

1,000

 

 

To Bank A/c

 

 

1,000

 

(Payment of bill was made on its due date.)

 

 

 

 

 

 

 

 

 

Page No 16.34:

Question 5:

Dinesh received from Shridhar an acceptance for ₹ 3,000 on 1st September, 2016 at 3 months. Dinesh got the acceptance discounted at 9% p.a. from his bank. On the due date, Shridhar paid the required amount.
Give the Journal entries in the books of Dinesh and Shridhar.

Answer:

Books of Dinesh

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.01

Bills Receivable A/c

Dr.

 

3,000

 

 

To Shridhar

 

 

3,000

 

(Shridhar acceptance was received)

 

 

 

 

 

 

 

 

Sep.01

Bank A/c

Dr.

 

2,932.50

 

 

Discount Charges A/c

Dr.

 

67.50

 

 

To Bills Receivable A/c

 

 

3,000

 

(Shridhar’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

 

Books of Shridhar

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.01

Dinesh

Dr.

 

3,000

 

 

To Bills Payable A/c

 

 

3,000

 

(Bills drawn by Shridhar accepted)

 

 

 

 

 

 

 

 

Dec.04

Bills Payable A/c

Dr.

 

3,000

 

 

To Bank A/c

 

 

3,000

 

(Shridhar’s acceptance discharged on its due date)

 

 

 

 

 

 

 

 

 



Page No 16.35:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

20,000

 

 

To Sales A/c

 

 

20,000

 

(Goods sold to B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

20,000

 

 

To B

 

 

20,000

 

(B accepted the bill)

 

 

 

 

 

 

 

 

 

C

Dr.

 

20,000

 

 

To Bills Receivable A/c

 

 

20,000

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

 

Page No 16.35:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

July 10

B

Dr.

 

3,500

 

 

To Sales A/c

 

 

3,500

 

(Goods sold to B)

 

 

 

 

 

 

 

 

July 10

Bills Receivable A/c

Dr.

 

3,500

 

 

To B

 

 

3,500

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

July 20

C

Dr.

 

3,500

 

 

To Bills Receivable A/c

 

 

3,500

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

July 10

Purchases A/c

Dr.

 

3,500

 

 

To A

 

 

3,500

 

(Goods bought from A)

 

 

 

 

 

 

 

 

July 10

A

Dr.

 

3,500

 

 

To Bills Payable A/c

 

 

3,500

 

(Bill drawn by A accepted)

 

 

 

 

 

 

 

 

Oct 13

Bills Payable A/c

Dr.

 

3,500

 

 

To Cash A/c

 

 

3,500

 

(Payment of bill was made on its due date)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

July 20

Bills Receivable A/c

Dr.

 

3,500

 

 

To A

 

 

3,500

 

(Bill Receivable received from A)

 

 

 

 

 

 

 

 

Oct 13

Cash A/c

Dr.

 

3,500

 

 

To Bills Receivable A/c

 

 

3,500

 

(Amount of bill received on maturity)

 

 

 

 

 

 

 

 

 

Page No 16.35:

Question 8:

A drew a bill of ₹ 1,000 on B for 3 months which was duly accepted by the latter. A endorsed the bill to C in full payment of his own acceptance to C for a like amount. C endorsed the bill to B.

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

 

C

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

A

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Amount owed from C was settled by Bill Payable)

 

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To A

 

 

1,000

 

(Bills Receivable was received from A)

 

 

 

 

 

 

 

 

 

B

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Amount owed to B was settled by Bills Receivable)

 

 

 

 

 

 

 

 

 

Page No 16.35:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Aug.01

B

Dr.

 

8,000

 

 

To Bills Payable A/c

 

 

8,000

 

(Bill drawn by B was accepted)

 

 

 

 

 

 

 

 

Dec.04

Bills Payable A/c

Dr.

 

8,000

 

 

To Bank A/c

 

 

8,000

 

(Payment made to meet the bill on its maturity)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Aug 01

Bills Receivable A/c

Dr.

 

8,000

 

 

To A

 

 

8,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

Aug 01

C

Dr.

 

8,000

 

 

To Bills Receivable A/c

 

 

8,000

 

(A’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Aug 01

Bills Receivable A/c

Dr.

 

8,000

 

 

To B

 

 

8,000

 

(Bills Receivable was received from B)

 

 

 

 

 

 

 

 

 Sep 01

Bank A/c

Dr.

 

7,760

 

 

Discount Charges A/c

Dr.

 

240

 

 

To Bills Receivable A/c

 

 

8,000

 

(Bill discount at 12% p.a. for 3 months)

 

 

 

 

 

 

 

 

 

Working Note:

Page No 16.35:

Question 10:

Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

Answer:

Books of Mohan Singh

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To Jagat

 

 

1,000

 

(Jagat acceptance was received)

 

 

 

 

 

 

 

 

 

Bills Sent for Collection A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Bill Receivable sent to bank for collection)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

1,000

 

 

To Bills Sent for Collection A/c

 

 

1,000

 

(Payment of bill received by bank)

 

 

 

 

 

 

 

 

 

 

Books of Jagat

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Mohan Singh

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bills drawn by Mohan Singh was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

1,000

 

 

To Bank A/c

 

 

1,000

 

(Payment was made to meet the bill)

 

 

 

 

 

 

 

 

 

Page No 16.35:

Question 11:

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 under each of the following circumstances:
(a) If X retains the bill till due date.
(b) If X discounts the same with his banker paying ₹ 100 for discount.
(c) If X endorses the same to his creditor Z in full settlement of his debt of ₹ 4,080.
(d) If X sends the bill to his banker for collection the next day.

Answer:

Case (a)

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To Y

 

 

4,000

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

4,000

 

 

To Bills Receivable A/c

 

 

4,000

 

(Amount of bill received on its maturity)

 

 

 

 

 

 

 

 

 

Case (b)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To Y

 

 

4,000

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

3,900

 

 

Discount Charges A/c

Dr.

 

100

 

 

To Bills Receivable A/c

 

 

4,000

 

(Y’s acceptance discount with bank)

 

 

 

 

 

 

 

 

 

Case (c)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To Y

 

 

4,000

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

 

Z

Dr.

 

4,080

 

 

To Discount Received A/c

 

 

80

 

To Bills Receivable A/c

 

 

4,000

 

(Y’s acceptance endorsed in favour of Z and discount allowed by Z is Rs 80)

 

 

 

 

 

 

 

 

 

Case (d)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To Y

 

 

4,000

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bills Sent for Collection A/c

Dr.

 

4,000

 

 

To Bills Receivable A/c

 

 

4,000

 

(Y’s acceptance sent to bank for collection)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

4,000

 

 

To Bills Sent for Collection A/c

 

 

4,000

 

(Y’s acceptance net on maturity)

 

 

 

 

 

 

 

 

 

Page No 16.35:

Answer:

Books of Ram

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.15

Bills Receivable A/c

Dr.

 

2,000

 

 

To Shyam

 

 

2,000

 

(Shyam’s acceptance received)

 

 

 

 

 

 

 

 

Dec.18

Shyam A/c

Dr.

 

2,000

 

 

To Bills Receivable A/c

 

 

2,000

 

(Shyam’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

Books of Shyam

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.15

Ram

Dr.

 

2,000

 

 

To Bills Payable A/c

 

 

2,000

 

(Bill drawn by Ram was accepted)

 

 

 

 

 

 

 

 

Dec.18

Bills Payable A/c

Dr.

 

2,000

 

 

To Ram

 

 

2,000

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.35:

Answer:

Books of Naresh

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Mar.20

Kailash

Dr.

 

1,250

 

 

To Sales A/c

 

 

1,250

 

(Goods sold to Kailash)

 

 

 

 

 

 

 

 

Mar.20

Bills Receivable A/c

Dr.

 

1,250

 

 

To Kailash

 

 

1,250

 

(Kailash’s acceptance was received)

 

 

 

 

 

 

 

 

Jun.23

Kailash

Dr.

 

1,260

 

 

To Bills Receivable A/c

 

 

1,250

 

To Cash A/c

 

 

10

  (Bill received from Kailash dishonoured and Rs 10 paid for Noting the bill)      
         

July 01

Cash A/c

Dr.

 

1,260

 

 

To Kailash

 

 

1,260

  (Received cash from Kailash)      

 

 

 

 

 

 

Books of Kailash

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Mar.20

Purchases A/c

Dr.

 

1,250

 

 

To Naresh

 

 

1,250

 

(Goods were bought from Naresh )

 

 

 

 

 

 

 

 

Mar.20

Naresh

Dr.

 

1,250

 

 

To Bills Payable A/c

 

 

1,250

 

(Bill drawn by Naresh was accepted)

 

 

 

 

 

 

 

 

Jun.23

Bills Payable A/c

Dr.

 

1,250

 

 

Noting Charges A/c

Dr.

 

10

 

 

To Naresh

 

 

1,260

  (Bill Payable was dishonoured)      
         

July 01

Naresh

Dr.

 

1,260

 

 

To Cash A/c

 

 

1,260

 

(Paid cash to Naresh)

 

 

 

 

 

 

 

 

 



Page No 16.36:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jul.01

Bills Receivable A/c

Dr.

 

5,000

 

 

To B

 

 

5,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jul.01

Bank A/c

Dr.

 

4,850

 

 

Discount Charges A/c

Dr.

 

150

 

 

To Bills Receivable A/c

 

 

5,000

 

(B’s acceptance discounted with bank)

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

5,050

 

 

To Bank A/c

 

 

5,050

 

(B’s acceptance became dishonoured, bank paid Noting Charges Rs 50)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jul.01

A

Dr.

 

5,000

 

 

To Bills Payable A/c

 

 

5,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

Oct.04

Bills Payable A/c

Dr.

 

5,000

 

 

Noting Charges A/c

Dr.

 

50

 

 

To A

 

 

5,050

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.36:

Answer:

Books of Mohan

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

June 15

Sohan

Dr.

 

2,000

 

 

To Sales A/c

 

 

2,000

 

(Goods sold to Sohan)

 

 

 

 

 

 

 

 

June 15

Bills Receivable A/c

Dr.

 

2,000

 

 

To Sohan

 

 

2,000

 

(Sohan’s acceptance was received)

 

 

 

 

 

 

 

 

June 15

Bank A/c

Dr.

 

1,960

 

 

Discount Charges A/c

Dr.

 

40

 

 

To Bills Receivable A/c

 

 

2,000

 

(Sohan’s acceptance discounted with bank)

 

 

 

 

 

 

 

 

Sep.18

Sohan

Dr.

 

2,010

 

 

To Bank A/c

 

 

2,010

 

(Sohan’s acceptance became dishonoured and Bank paid Rs 10 Noting Charges)

 

 

 

 

 

 

 

 

Sep.18

Bank A/c

Dr.

 

2,010

 

 

To Cash A/c

 

 

2,010

 

(Liabilities on account bill dishonoured was discharged)

 

 

 

 

 

 

 

 

 

Books of Sohan

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

June 15

Purchases A/c

Dr.

 

2,000

 

 

To Mohan

 

 

2,000

 

(Goods were bought from Sohan)

 

 

 

 

 

 

 

 

June 15

Mohan

Dr.

 

2,000

 

 

To Bills Payable A/c

 

 

2,000

 

(Bills drawn by Mohan was accepted)

 

 

 

 

 

 

 

 

 Sep.18

Bills Payable A/c

Dr.

 

2,000

 

 

Noting Charges A/c

Dr.

 

10

 

 

To Mohan

 

 

2,010

 

(Bills Payable became dishonoured)

 

 

 

 

Page No 16.36:

Answer:

Books of R

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Mar.01

S

Dr.

 

20,000

 

 

To Bills Payable A/c

 

 

20,000

 

(Bill drawn by S was accepted)

 

 

 

 

 

 

 

 

June 04

Bills Payable A/c

Dr.

 

20,000

 

 

To S

 

 

20,000

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of T

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Mar.01

Bank A/c

Dr.

 

5,000

 

 

Bills Receivable A/c

Dr.

 

20,000

 

 

To S

 

 

25,000

 

(Bill Receivable and cheque received from S)

 

 

 

 

 

 

 

 

Mar.02

Bank A/c

Dr.

 

19,700

 

 

Discount Charges A/c

Dr.

 

300

 

 

To Bills Receivable A/c

 

 

20,000

 

(R’s acceptance discounted with bank at 6% p.a. for 3 months)

 

 

 

 

 

 

 

 

June 04

S

Dr.

 

20,000

 

 

To Bank A/c

 

 

20,000

 

(Bill received from S was dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.36:

Question 17:

On 1st January, 2018, A drew a bill on B for ₹ 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.
Record the transactions 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. 01

Bills Receivable A/c

Dr.

 

10,000

 

 

To B

 

 

10,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jan. 11

C

Dr.

 

10,000

 

 

To Bills Receivable A/c

 

 

10,000

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

10,050

 

 

To C

 

 

10,050

 

(Bill endorsed in favour of C was dishonoured and C paid Rs 50 Noting Charges)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan. 01

A

Dr.

 

10,000

 

 

To Bills Payable A/c

 

 

10,000

 

(Bill drawn by A was accepted )

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

10,000

 

 

Noting Charges A/c

Dr.

 

50

 

 

To A

 

 

10,050

 

(Bill Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.11

Bills Receivable A/c

Dr.

 

10,000

 

 

To A

 

 

10,000

 

(Bill Receivable received from A)

 

 

 

 

 

 

 

 

April 04

A

Dr.

 

10,050

 

 

To Bills Receivable A/c

 

 

10,000

 

To Cash A/c

 

 

50

 

(Bill Receivable received from A became dishonoured and Noting Charge paid Rs 50)

 

 

 

 

 

 

 

 

 

Page No 16.36:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

3,900

 

 

Discount Allowed A/c

Dr.

 

100

 

 

To B

 

 

4,000

 

(B’s acceptance received and discount allowed)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

4,050

 

 

To Bills Receivable A/c

 

 

3,900

 

To Discount Allowed A/c

 

 

100

 

To Cash A/c

 

 

50

 

(B’s acceptance became dishonoured and Noting charges paid Rs 50)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.01

A

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

3,900

 

To Discount Received A/c

 

 

100

 

(Bill drawn by A was accepted and discount was received from him)

 

 

 

 

 

 

 

 

April 04

Bills payable A/c

Dr.

 

3,900

 

 

Discount Received A/c

Dr.

 

100

 

 

Noting Charges A/c

Dr.

 

50

 

 

To A

 

 

4,050

 

(Bills Payable dishonoured )

 

 

 

 

 

 

 

 

 

Page No 16.36:

Question 19:

Y owes X ₹ 4,000. On 1st January, 2017, Y accepts a 3 months bill for ₹ 3,900 in satisfaction of his full claim. On the same date, it was endorsed by X to Z in satisfaction of his claim of ₹ 3,980. The bill is dishonoured on the due date. Give the Journal entries in the books of X.

Answer:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

3,900

 

 

Discount Allowed A/c

Dr.

 

100

 

 

To Y

 

 

4,000

 

(Y’s acceptance received in full settlement of

amount due from him and allowed with discount)

 

 

 

 

 

 

 

 

Jan.01

Z

Dr.

 

3,980

 

 

To Bills Receivable A/c

 

 

3,900

 

To Discount Received A/c

 

 

80

 

(Y’s acceptance endorsed in favour of Z

 and discount received)

 

 

 

 

 

 

 

 

Mar.04

Y

Dr.

 

4,000

 

 

Discount Received A/c                               Dr.

 

80

 

 

To Z

 

 

3,980

 

To Discount Allowed A/c

 

 

100

 

(Y’s acceptance was endorsed to Z,

now dishonoured)

 

 

 

 

Page No 16.36:

Answer:

Books of Rama

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

Jan.01

Reshma

Dr.

 

1,200

 

 

To Sales A/c

 

 

1,200

 

(Goods were sold to Reshma)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,200

 

 

To Reshma