Double Entry Book Keeping Ts Grewal 2018 for Class 11 Commerce Accountancy Chapter 12 - Accounting For Bills Of Exchange

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Double Entry Book Keeping Ts Grewal 2018 Solutions for Class 11 Commerce Accountancy Chapter 12 Accounting For Bills Of Exchange are provided here with simple step-by-step explanations. These solutions for Accounting For Bills Of Exchange are extremely popular among Class 11 Commerce students for Accountancy Accounting For Bills Of Exchange Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal 2018 Book of Class 11 Commerce Accountancy Chapter 12 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal 2018 Solutions. All Double Entry Book Keeping Ts Grewal 2018 Solutions for class Class 11 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 16.34:

Question 1:

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

Date of Bill		Tenure (Period)
(i)	1st December, 2017	60 Days
(ii)	30th April, 2018	2 Months
(iii)	28th January, 2018	1 Month
(iv)	23rd November, 2017	2 Months
(v)	29th May, 2017	4 Months

Answer:

Date of Bill	Tenure	Calculation	Due Date
(i) December 01, 2017	60 Days	30 (December) + 30 (January) + 3 days of grace	February 02, 2018
(ii) April 30, 2018	2 Months	2 Months from April 30, 2016 would be June 30, 2016 + 3 days of grace	July 03, 2018
(iii) January 28, 2018	1 Month	1 Month from January 28, 2017 would be February 28, 2017 + 3 days of grace	March 03, 2018
(iv) November 23, 2017	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 (ii) is mismatched from the book. As per our solution, it is 3rd July, 2018 and it is 3rd July, 2017 as per text book.
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 text book.

Page No 16.34:

Question 2:

On 10th March, 2018, A draws on B a bill at 3 months for â‚¹20,000 which B accepts immediately and returns to A. The bill is honoured due date.
â€‹Pass necessary Journal entries in the books of both the parties.

Answer:

Journal in the books of A (Drawer)
Date	Particulars		L.F.	Debit Amount (â‚¹)	Credit Amount (â‚¹)
2018
Mar 10	Bills Receivable A/c	Dr.		20,000
	To B’s A/c				20,000
	(Bill received)

June 13	Cash A/c	Dr.		20,000
	To Bills Receivable A/c				20,000
	(Cash received against bill)

Journal in the books of B (Drawee)
Date	Particulars		L.F.	Debit Amount (â‚¹)	Credit Amount (â‚¹)
2018
Mar 10	A A/c	Dr.		20,000
	To Bills Payable A/c				20,000
	(Bill accepted)

June 13	Bills Payable A/c	Dr.		20,000
	To Cash A/c				20,000
	(Cash paid against bill)

Page No 16.34:

Question 3:

On 1st January, 2018, A sold goods to B for â‚¹ 5,000 plus IGST @ 18%. A received â‚¹ 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On due date, the bill was paid. Pass Journal entries in the books of A and B. Also, show necessary accounts in the books of both the parties.

Answer:

Books of A
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
Jan.01	B	Dr.		5,900
	To Sales A/c To Output IGST A/c				5,000 900
	(Goods sold to B plus IGST @ 18%)

Jan.01	Bills Receivable A/c Bank A/c	Dr. Dr.		5,000 900
	To B				5,000
	(B accepted the bill and paid IGST by cheque)

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
2018
Jan.01	Purchases A/c Input IGST A/c	Dr. Dr.		5,000 900
	To A				5,900
	(Goods bought from A plus IGST @ 18%)

Jan.01	A	Dr.		5,900
	To Bills Payable A/c To Bank A/c				5,000 900
	(Bill drawn by A accepted and IGST paid by cheque)

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:

Manish sold goods to Kumar for â‚¹ 10,000 plus CGST and SGST @ 9% each. He received â‚¹ 1,800 in cash and drew on him a bill for â‚¹ 10,000 payable 3 months after date. Kumar accepted the bill and returned it to Manish. On due date, Manish presented the bill to Kumar who honoured it.
Pass Journal entries in the books of both the parties.

Answer:

Books of Manish
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Kumar	Dr.		11,800
	To Sales A/c To Output CGST A/c To Output SGST A/c				10,000 900 900
	(Goods sold to Kumar plus CGST and SGST @ 9% each)

	Bills Receivable A/c Cash A/c	Dr. Dr.		10,000 1,800
	To Kumar				11,800
	(Kumar accepted the bill and Paid GST in cash)

	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 Input CGST A/c Input SGST A/c	Dr. Dr. Dr.		10,000 900 900
	To Manish				11,800
	(Goods bought from Manish plus CGST and SGST @ 9% each)

	Manish	Dr.		11,800
	To Bills Payable A/c To Cash A/c				10,000 1,800
	(Bill drawn by Manish accepted and GST paid in cash)

	Bills Payable A/c	Dr.		10,000
	To Cash A/c				10,000
	(Acceptance discharged by paying in Cash)

Page No 16.34:

Question 5:

Vinod sold goods to Darbara Singh for â‚¹ 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 â‚¹ 990. 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 16.35:

Question 6:

Dinesh received from Shridhar an acceptance for â‚¹ 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:

Question 7:

A drew a bill of â‚¹ 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.
Pass the 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
	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:

Question 8:

A owed B â‚¹ 8,000. He gave a bill for the same on 1st August, 2017 payable after 4 months at the Bank of India. Chandni Chowk, Delhi. Immediately after receiving the bill, B endorsed it to C in payment of his debt. On 1st Sepetember, C discounted the bill at 12% p.a. The bill is met on due date.
Pass the necessary 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
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
2017
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
2017
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 9:

A sold goods to B for â‚¹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A â‚¹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.

Answer:

Books of A
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	B	Dr.		23,600
	To Sales A/c To Output CGST A/c To Output SGST A/c				20,000 1,800 1,800
	(Goods sold to B plus CGST and SGST @ 9% each)

	Bills Receivable A/c Bank A/c	Dr. Dr.		20,000 3,600
	To B				23,600
	(B accepted the bill and paid GST by cheque)

	C	Dr.		20,000
	To Bills Receivable A/c				20,000
	(B’s acceptance endorsed in favour of C)

Page No 16.35:

Question 10:

On 10th July, 2017, A sold goods to B for â‚¹ 35,000 plus IGST @ 18%. He drew on him a 3 months bill for â‚¹ 35,000 and received cheque for the balance amount. B accepted the bill. After 10 days, A endorsed the bill to his creditor C. On due date, acceptance is duly met. Show 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
July 10	B	Dr.		41,300
	To Sales A/c To Output IGST A/c				35,000 6,300
	(Goods sold to B plus IGST @ 12%)

July 10	Bills Receivable A/c Bank A/c	Dr. Dr.		35,000 6,300
	To B				41,300
	(B’s acceptance was received and IGST by cheque)

July 20	C	Dr.		35,000
	To Bills Receivable A/c				35,000
	(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 Input IGST A/c	Dr. Dr.		35,000 6,300
	To A				41,300
	(Goods bought from A plus IGST @ 12%)

July 10	A	Dr.		41,300
	To Bills Payable A/c To Bank A/c				35,000 6,300
	(Bill drawn by A accepted and paid IGST by cheque)

Oct 13	Bills Payable A/c	Dr.		35,000
	To Cash A/c				35,000
	(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.		35,000
	To A				35,000
	(Bill Receivable received from A)

Oct 13	Cash A/c	Dr.		35,000
	To Bills Receivable A/c				35,000
	(Amount of bill received on maturity)

Page No 16.35:

Question 11:

Mohan Singh draws a bill on Jagat for â‚¹ 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 12:

X draws on Y a bill for â‚¹ 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 â‚¹ 100 for discount.
(c) If X endorses the same to his creditor Z in full settlement of his debt of â‚¹ 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:

Question 13:

Ram draws a bill for â‚¹ 2,000 on Shyam on 15th September, 2017 for 3 months. On maturity, Shyam failed to honour th bill.
Pass the necessary Journal entries in the books of Ram and Shyam.

Answer:

Books of Ram
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
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
2017
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:

Question 14:

On 20th March, 2018, Naresh sold goods to Kailash to the vlaue of â‚¹ 1,250, taking a bill at 3 months for the amount. On maturity, the bill was dishonoured. Naresh paid â‚¹ 10 as noting charges. On 1st July, Kailash cleared his account by paying â‚¹ 1,260.
Make the entries in the books of both the parties to record the above transactions.

Answer:

Books of Naresh
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
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
2018
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:

Question 15:

On 1st July, 2017, A drew a bill for â‚¹ 5,000 on B payable after 3 months. A discounted it with the Bank for â‚¹ 4,850. On maturity B failed to pay the amount of his acceptance and the bank had to pay â‚¹ 50 as noting charges.
Draw up the necessary 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
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
2017
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:

Question 16:

On 15th June, 2017, Mohan sold goods to Sohan valued at â‚¹ 2,000. He drew a bill at 3 months for the amount and discounted the same with his bankers at â‚¹ 1,960. On the due date the bill was dishonoured and Mohan paid to the bank the amount due plus the noting charges of â‚¹ 10.
Draft the Journal entries in the books of all parties.

Answer:

Books of Mohan
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
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
2017
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:

Question 17:

On 1st March, 2018, R accepted a Bill of Exchange of â‚¹ 20,000 from S payable 3 months after date in full settlement of his dues. On the same day S endorsed the Bill of Exchanges to T together with a cheque for â‚¹ 5,000 in settlement of his debt to the latter. On 2nd March, 2018, T discounted the Bill of Exchange @ 6% p.a. with his bankers. On maturity the Bill of Exchange was dishonoured.
Journalise the transactions in the books of R and T.

Answer:

Books of R
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
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
2018
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 18:

On 1st January, 2018, A drew a bill on B for â‚¹ 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 â‚¹ 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:

Question 19:

B owes A â‚¹ 4,000. On 1st January, 2018, B accepts a 3 months bill for â‚¹ 3,900 being in full settlement of the claim. At its due date the bill is dishounoured. Nothing charges â‚¹ 50 are paid by A. Give the Journal entries in the books of A and B.

Answer:

Books of A
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2018
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
2018
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 20:

Y owes X â‚¹ 4,000. On 1st January, 2017, Y accepts a 3 months bill for â‚¹ 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 â‚¹ 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