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Page No 16.35:

Question 1:

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

Date of Bill
Tenure (Period)
(i)
1st December, 2018
60 Days
(ii)
30th April, 2019
2 Months
(iii)
28th January, 2019
1 Month
(iv)
23rd November, 2018
2 Months
(v)
29th May, 2018
4 Months

Answer:

Date of Bill

Tenure

Calculation

Due Date

(i) December 01, 2018

60 Days

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

February 02, 2019

(ii) April 30, 2019

2 Months

2 Months from April 30, 2019 would be June 30, 2019 + 3 days of grace

July 03, 2019

(iii) January 28, 2019

1 Month

1 Month from January 28, 2019 would be February 28, 2019 + 3 days of grace

March 03, 2019

(iv) November 23, 2018

2 Months

2 Months from November 23, 2018 would be January 23, 2019 + 3 days of grace

January 26, 2019, but it is a national holiday so, due date would be one day before i.e., January 25, 2019

(v) May 29, 2018

4 Months

4 Months from May 29, 2019 would be September 29, 2019 + 3 days of grace

October 02, 2019 but it is a national holiday so, due date would be one day before i.e., October 01, 2019

 

Page No 16.35:

Question 2:

On 10th March, 2019, A draws on B a bill at 3 months for ₹ 20,000 which B accepts immediately and returns to A. The bill is honoured due date.
​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
(₹)
Credit
Amount
(₹)
2019
 
 
 
 
 
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
(₹)
Credit
Amount
(₹)
2019
 
 
 
 
 
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 16.35:

Question 3:

On 1st January, 2019, A sold goods to B for ₹ 5,000 plus IGST @ 18%. A received ₹ 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

()

Credit

Amount

()

2019

 

 

 

 

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

()

Credit

Amount

()

2019

 

 

 

 

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 16.35:

Question 4:

Vinod sold goods to Darbara Singh for ₹ 1,000 on 1st January, 2019. He drew on the latter a bill for the amount payable 3 months after date.He discounted the bill with his bank for ₹ 990 on 4th January, 2019. 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

(₹)

Credit

Amount

(₹)

2019          

Jan.1

Darbara Singh

Dr.

 

1,000

 

 

To Sales A/c

 

 

1,000

 

(Goods sold to Darbara Singh)

 

 

 

 

 

 

 

 

Jan.1

Bills Receivable A/c

Dr.

 

1,000

 

 

To Darbara Singh

 

 

1,000

 

(Bills accepted by Darbara Singh)

 

 

 

 

 

 

 

 

Jan.4

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

(₹)

Credit

Amount

(₹)

2019          

Jan.1

Purchases A/c

Dr.

 

1,000

 

 

To Vinod

 

 

1,000

 

(Goods bought from Vinod )

 

 

 

 

 

 

 

 

Jan.1

Vinod

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by Vinod accepted)

 

 

 

 

 

 

 

 

Mar.4

Bills Payable A/c

Dr.

 

1,000

 

 

To Bank A/c

 

 

1,000

 

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

 

 

 

 

 

 

 

 

 



Page No 16.36:

Question 5:

On 1st January, 2019, X sold goods of ₹ 20,000 to Y and drew a bill on Y at three months for the amount. Y accepted the bill. The bill is met on maturity. Pass the necessary Journal entries in the books of X and Y, if X discounted the bill @ 12% p.a. from bank on 4th January.

Answer:

In the books  of X

Journal

Date

Particulars

 

L.F.

Debit

Amount
(₹)

Credit
Amount
(₹)

2019

 

 

 

 

 

January 01

Y’s A/c

Dr.

 

20,000

 

 

  To Sales A/c

 

 

 

20,000

 

(Being goods sold to Y on credit)

 

 

 

 

 

 

 

 

 

 

January 01

Bills Receivable A/c

Dr.

 

20,000

 

 

  To Y’s A/c

 

 

 

20,000

 

(Being bill drawn on Y for three months)

 

 

 

 

 

 

 

 

 

 

January 04

Bank A/c

Dr.

 

19,400

 

 

Discounting Charges A/c

Dr.

 

600

 

 

  To Bills Receivable A/c

 

 

 

20,000

 

(Being bill discounted with bank and charges paid @12% p.a.)

 

 

 

 

Working Notes:
Discounting Charges = ₹ (20,000 × 12/100 × 3/12) = ₹ 600

In the books  of Y

Journal

Date

Particulars

 

L.F.

Debit

Amount
(₹)

Credit
Amount
(₹)

2019

 

 

 

 

 

Jan. 01

Purchases A/c

Dr.

 

20,000

 

 

  To X’s A/c

 

 

 

20,000

 

(Being goods purchased from X on credit)

 

 

 

 

 

 

 

 

 

 

Jan. 01

X’s A/c

Dr.

 

20,000

 

 

  To Bills Payable A/c

 

 

 

20,000

 

(Being acceptance given to X)

 

 

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

20,000

 

 

  To Bank A/c

 

 

 

20,000

 

(Being bill paid on maturity)

 

 

 

 

Page No 16.36:

Question 6:

Dinesh received from Shridhar an acceptance for ₹ 3,000 on 1st September, 2018 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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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 16.36:

Question 7:

A sells goods of ₹ 10,000 on 1st March, 2019 to B on credit. B accepts a bill on the same date for the amount payable three months after date. A discounts the bill at 6% p.a. from bank on 4th April. On maturity, the bill  is met by B. Pass the necessary Journal entries in the books of both the parties.

Answer:

In the books  of A

Journal

Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)

2019

 

 

 

 

 

March 01

B’s A/c

Dr.

 

10,000

 

 

  To Sales A/c

 

 

 

10,000

 

(Being goods sold to B on credit)

 

 

 

 

 

 

 

 

 

 

March 01

Bills Receivable A/c

Dr.

 

10,000

 

 

  To B’s A/c

 

 

 

10,000

 

(Being bill drawn on B for three months)

 

 

 

 

 

 

 

 

 

 

April 04

Bank A/c

Dr.

 

10,000

 

 

Discounting Charges A/c

Dr.

 

100

 

 

  To Bills Receivable A/c

 

 

 

9,900

  (Being bill discounted with bank and charges paid @6% p.a.)

 

 

 

 

Working Notes:
Discounting Charges = ₹ (10,000 × 6/100 × 2/12) = ₹ 100

In the books  of B

Journal

Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)

2019

 

 

 

 

 

March 01

Purchases A/c

Dr.

 

10,000

 

 

  To A’s A/c

 

 

 

10,000

 

(Being goods purchased from A on credit)

 

 

 

 

 

 

 

 

 

 

March 01

A’s A/c

Dr.

 

10,000

 

 

  To Bills Payable A/c

 

 

 

10,000

 

(Being acceptance given to A)

 

 

 

 

 

 

 

 

 

 

June 04

Bills Payable A/c

Dr.

 

10,000

 

 

  To Bank A/c

 

 

 

10,000

 

(Being bill paid on maturity)

 

 

 

 

Page No 16.36:

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.
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 16.36:

Question 9:

A owed B ₹ 8,000. He gave a bill for the same on 1st August, 2018 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 September, 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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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 16.36:

Question 10:

A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 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

(₹)

Credit

Amount

(₹)

 

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 16.36:

Question 11:

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 16.36:

Question 12:

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 16.36:

Question 13:

Ram draws a bill for ₹ 2,000 on Shyam on 15th September, 2018 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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

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 16.37:

Question 14:

On 20th March, 2019, Naresh sold goods to Kailash to the value of ₹ 1,250, taking a bill at 3 months for the amount. On maturity, the bill was dishonoured. Naresh paid ₹ 10 as noting charges. On 1st July, Kailash cleared his account by paying ₹ 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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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 16.37:

Question 15:

On 1st January, 2019, X sold goods to Y for ₹ 25,000 and immediately received from Y ₹ 10,000 by cheque and drew a bill on Y at three months for the balance amount. Bill is accepted by Y. Bill was dishonoured on the due date and Y paid ₹ 150 as noting charges. Ten days later, Y pays the due amount to X. Pass the Journal entries in the books of both the parties.

Answer:

In the books  of X

Journal

Date

Particulars

 

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

 

Jan. 01

Y’s A/c

Dr.

 

25,000

 

 

  To Sales A/c

 

 

 

25,000

 

(Being goods sold to Y on credit)

 

 

 

 

 

 

 

 

 

 

Jan. 01

Bills Receivable A/c

Dr.

 

15,000

 

 

Bank A/c

Dr.

 

10,000

 

 

  To Y’s A/c

 

 

 

25,000

 

(Being bill drawn on Y for three months and part payment received)

 

 

 

 

 

 

 

 

 

 

April 04

Y’s A/c

Dr.

 

15,000

 

 

  To Bills Receivable A/c

 

 

 

15,000

 

(Being bill dishonoured by Y)

 

 

 

 

 

 

 

 

 

 

April 14

Bank A/c

Dr.

 

15,000

 

 

  To Y’s A/c

 

 

 

15,000

  (Being amount due paid by Y after 10 days)

 

 

 

 

   

 

 

 

 

 

In the books  of Y

Journal

Date

Particulars

 

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

 

Jan. 01

Purchases A/c

Dr.

 

25,000

 

 

  To X’s A/c

 

 

 

25,000

 

(Being goods purchased from X on credit)

 

 

 

 

 

 

 

 

 

 

Jan. 01

X’s A/c

Dr.

 

25,000

 

 

  To Bank A/c

 

 

 

10,000

 

  To Bills Payable A/c

 

 

 

15,000

 

(Being acceptance given to X and part payment given)

 

 

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

15,000

 

 

Noting Charges A/c

Dr.

 

150

 

 

  To X’s A/c

 

 

 

15,000

 

  To Cash A/c

 

 

 

150

 

(Being bill dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

April 14

X’s A/c

Dr.

 

15,000

 

 

  To Bank A/c

 

 

 

15,000

 

(Being due amount paid to X)

 

 

 

 

Page No 16.37:

Question 16:

On 1st July, 2019, A drew a bill for ₹ 5,000 on B payable after 3 months. A discounted it with the Bank for ₹ 4,850. On maturity, B failed to pay the amount of his acceptance and the bank had to pay ₹ 50 as noting charges.
Pass the necessary Journal entries in the books of A and B.

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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 16.37:

Question 17:

On 15th June, 2019, Mohan sold goods to Sohan valued at ₹ 2,000. He drew a bill at 3 months for the amount and discounted the same with his bank for ₹ 1,960. On the due date the bill was dishonoured and Mohan paid to the bank the amount due plus the noting charges of ₹ 10.
Draft the Journal entries in the books of all parties.

Answer:

Books of Mohan

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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 16.37:

Question 18:

On 1st March, 2019, R accepted a Bill of Exchange of ₹ 20,000 from S payable 3 months after date in full settlement of his dues. On the same day S endorsed the Bill of Exchange to T together with a cheque for ₹ 5,000 in settlement of his debt to the latter. On 2nd March, 2019, T discounted the Bill of Exchange @ 6% p.a. with his bank. 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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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 16.37:

Question 19:

On 1st January, 2019, 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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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 16.37:

Question 20:

Y owes X ₹ 4,000. On 1st January, 2019, 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

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

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