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Page No 16.46:

Question 1:

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 16.46:

Question 2:

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)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

2016

 

 

 

 

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 16.46:

Question 3:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

2016

 

 

 

 

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 )

 

 

 

 

 

 

 

 

 

Answer:

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

March 10

Bills Receivable A/c

Dr.

 

200

 

 

 

To B’s A/c

 

 

 

200

 

(Acceptance received from B)

 

 

 

 

 

 

 

 

 

 

June 13

Cash A/c

Dr.

 

200

 

 

 

To Bills Receivable A/c

 

 

 

200

 

(Cash received on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

March 10

A’s A/c

Dr.

 

200

 

 

 

To Bills Payable A/c

 

 

 

200

 

( Acceptance given to A)

 

 

 

 

 

 

 

 

 

 

June 13

Bills Payable A/c

Dr.

 

200

 

 

 

To Cash A/c

 

 

 

200

 

( Cash paid on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Page No 16.46:

Question 4:

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

March 10

Bills Receivable A/c

Dr.

 

200

 

 

 

To B’s A/c

 

 

 

200

 

(Acceptance received from B)

 

 

 

 

 

 

 

 

 

 

June 13

Cash A/c

Dr.

 

200

 

 

 

To Bills Receivable A/c

 

 

 

200

 

(Cash received on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

March 10

A’s A/c

Dr.

 

200

 

 

 

To Bills Payable A/c

 

 

 

200

 

( Acceptance given to A)

 

 

 

 

 

 

 

 

 

 

June 13

Bills Payable A/c

Dr.

 

200

 

 

 

To Cash A/c

 

 

 

200

 

( Cash paid on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

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 16.46:

Question 5:

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.)

 

 

 

 

 

 

 

 

 

Answer:

Books of Dinesh

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2014

 

 

 

 

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

 

 

Discounting 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

2014

 

 

 

 

Sep.01

Dinesh

Dr.

 

3,000

 

 

To Bills Payable A/c

 

 

3,000

 

(Bill 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 16.46:

Question 6:

Books of Dinesh

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2014

 

 

 

 

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

 

 

Discounting 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

2014

 

 

 

 

Sep.01

Dinesh

Dr.

 

3,000

 

 

To Bills Payable A/c

 

 

3,000

 

(Bill 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)

 

 

 

 

 

 

 

 

 

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 16.46:

Question 7:

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)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

2016

 

 

 

 

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 is 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

2016

 

 

 

 

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 16.46:

Question 8:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

2016

 

 

 

 

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 is 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

2016

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

Answer:

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

B’s A/c

Dr.

 

2,000

 

 

 

To Sales A/c

 

 

 

2,000

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (1)

Dr.

 

1,000

 

 

Bills Receivable A/c (2)

Dr.

 

1,000

 

 

 

To B’s A/c

 

 

 

2,000

 

(Acceptance received against the amount due)

 

 

 

 

 

 

 

 

 

 

 

C’s A/c

Dr.

 

1,000

 

 

 

To Bills Receivable A/c (1)

 

 

 

1,000

 

(Bills receivable endorsed to C)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,000

 

 

 

To Bills Receivable A/c (2)

 

 

 

1,000

 

(Cash received against second bills receivable)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Purchases A/c

Dr.

 

2,000

 

 

 

To A’s A/c

 

 

 

2,000

 

(Goods were purchased on credit)

 

 

 

 

 

 

 

 

 

 

 

A’s A/c

Dr.

 

2,000

 

 

 

To Bills Payable A/c (1)

 

 

 

1,000

 

 

To Bills Payable A/c (2)

 

 

 

1,000

 

(Acceptance given against the amount due)

 

 

 

 

 

 

 

 

 

 

 

Bills Payable A/c (1)

Dr.

 

1,000

 

 

Bills Payable A/c (2)

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

2,000

 

(Cash paid on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Page No 16.46:

Question 9:

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

B’s A/c

Dr.

 

2,000

 

 

 

To Sales A/c

 

 

 

2,000

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (1)

Dr.

 

1,000

 

 

Bills Receivable A/c (2)

Dr.

 

1,000

 

 

 

To B’s A/c

 

 

 

2,000

 

(Acceptance received against the amount due)

 

 

 

 

 

 

 

 

 

 

 

C’s A/c

Dr.

 

1,000

 

 

 

To Bills Receivable A/c (1)

 

 

 

1,000

 

(Bills receivable endorsed to C)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,000

 

 

 

To Bills Receivable A/c (2)

 

 

 

1,000

 

(Cash received against second bills receivable)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Purchases A/c

Dr.

 

2,000

 

 

 

To A’s A/c

 

 

 

2,000

 

(Goods were purchased on credit)

 

 

 

 

 

 

 

 

 

 

 

A’s A/c

Dr.

 

2,000

 

 

 

To Bills Payable A/c (1)

 

 

 

1,000

 

 

To Bills Payable A/c (2)

 

 

 

1,000

 

(Acceptance given against the amount due)

 

 

 

 

 

 

 

 

 

 

 

Bills Payable A/c (1)

Dr.

 

1,000

 

 

Bills Payable A/c (2)

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

2,000

 

(Cash paid on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

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 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 16.46:

Question 10:

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 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)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

2015

 

 

 

 

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

2015

 

 

 

 

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

 

 

Discounting Charges A/c

Dr.

 

240

 

 

To Bills Receivable A/c

 

 

8,000

 

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

 

 

 

 

 

 

 

 

 

Working Note:

Page No 16.46:

Question 11:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

2015

 

 

 

 

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

2015

 

 

 

 

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

 

 

Discounting Charges A/c

Dr.

 

240

 

 

To Bills Receivable A/c

 

 

8,000

 

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

 

 

 

 

 

 

 

 

 

Working Note:

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 16.46:

Question 12:

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)

 

 

 

 

 

 

 

 

 

Answer:

Books of Naresh

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

2015

 

 

 

 

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 16.47:

Question 13:

Books of Naresh

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

2015

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

Answer:

Books of Ram

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2014

 

 

 

 

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

2014

 

 

 

 

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 16.47:

Question 15:

Books of Ram

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2014

 

 

 

 

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

2014

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

Answer:

Books of Mohan

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

 

 

Discounting 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

2015

 

 

 

 

June 15

Purchases A/c

Dr.

 

2,000

 

 

To Mohan

 

 

2,010

 

(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 16.47:

Question 14:

Books of Mohan

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

 

 

Discounting 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

2015

 

 

 

 

June 15

Purchases A/c

Dr.

 

2,000

 

 

To Mohan

 

 

2,010

 

(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)

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jul.01

Bills Receivable A/c

Dr.

 

500

 

 

To B

 

 

500

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jul.01

Bank A/c

Dr.

 

485

 

 

Discount Charges A/c

Dr.

 

15

 

 

To Bills Receivable A/c

 

 

500

 

(B’s acceptance discounted with bank)

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

505

 

 

To Bank A/c

 

 

505

 

(B’s acceptance became dishonoured, bank paid Noting Charges Rs 5)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jul.01

A

Dr.

 

500

 

 

To Bills Payable A/c

 

 

500

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

Oct.04

Bills Payable A/c

Dr.

 

500

 

 

Noting Charges A/c

Dr.

 

5

 

 

To A

 

 

505

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.47:

Question 16:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jul.01

Bills Receivable A/c

Dr.

 

500

 

 

To B

 

 

500

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jul.01

Bank A/c

Dr.

 

485

 

 

Discount Charges A/c

Dr.

 

15

 

 

To Bills Receivable A/c

 

 

500

 

(B’s acceptance discounted with bank)

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

505

 

 

To Bank A/c

 

 

505

 

(B’s acceptance became dishonoured, bank paid Noting Charges Rs 5)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jul.01

A

Dr.

 

500

 

 

To Bills Payable A/c

 

 

500

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

Oct.04

Bills Payable A/c

Dr.

 

500

 

 

Noting Charges A/c

Dr.

 

5

 

 

To A

 

 

505

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Answer:

Books of R

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

2016

 

 

 

 

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

 

 

Discounting 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 16.47:

Question 17:

Books of R

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

2016

 

 

 

 

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

 

 

Discounting 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)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.11

C

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

1,005

 

 

To C

 

 

1,005

 

(Bill endorsed in favour of C was dishonoured and C paid Rs 5 Noting Charges)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

A

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by A was accepted )

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,000

 

 

Noting Charges A/c

Dr.

 

5

 

 

To A

 

 

1,005

 

(Bill Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.11

Bills Receivable A/c

Dr.

 

1,000

 

 

To A

 

 

1,000

 

(Bill Receivable received from A)

 

 

 

 

 

 

 

 

April 04

A

Dr.

 

1,005

 

 

To Bills Receivable A/c

 

 

1,000

 

To Cash A/c

 

 

5

 

(Bill Receivable received from A became dishonoured and Noting Charge paid Rs 5)

 

 

 

 

 

 

 

 

 

Page No 16.47:

Question 18:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.11

C

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

1,005

 

 

To C

 

 

1,005

 

(Bill endorsed in favour of C was dishonoured and C paid Rs 5 Noting Charges)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

A

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by A was accepted )

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,000

 

 

Noting Charges A/c

Dr.

 

5

 

 

To A

 

 

1,005

 

(Bill Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.11

Bills Receivable A/c

Dr.

 

1,000

 

 

To A

 

 

1,000

 

(Bill Receivable received from A)

 

 

 

 

 

 

 

 

April 04

A

Dr.

 

1,005

 

 

To Bills Receivable A/c

 

 

1,000

 

To Cash A/c

 

 

5

 

(Bill Receivable received from A became dishonoured and Noting Charge paid Rs 5)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

2015

 

 

 

 

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 16.47:

Question 19:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

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

2015

 

 

 

 

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 )

 

 

 

 

 

 

 

 

 

Answer:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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 16.47:

Question 20:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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)

 

 

 

 

Answer:

Books of Rama

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

 

 

1,200

 

(Reshma’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,182

 

 

Discounting Charges A/c

Dr.

 

18

 

 

To Bills Receivable A/c

 

 

1,200

 

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

 

 

 

 

 

 

 

 

April 04

Reshma

Dr.

 

1,220

 

 

To Bank A/c

 

 

1,220

 

(Reshma’s acceptance which had been discounted, now became dishonoured and bank paid Rs 20 as Noting Charges)

 

 

 

 

 

 

 

 

April 04

Bank A/c

Dr.

 

1,220

 

 

To Cash A/c

 

 

1,220

 

(Liabilities arising on account of bill dishonoured was settled)

 

 

 

 

 

 

 

 

 

 

Books of Reshma

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

1,200

 

 

To Rama

 

 

1,200

 

(Bought goods from Rama)

 

 

 

 

 

 

 

 

Jan.01

Rama

Dr.

 

1,200

 

 

To Bills Payable A/c

 

 

1,200

 

(Bill drawn by Rama was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,200

 

 

Noting Charges A/c

Dr.

 

20

 

 

To Rama

 

 

1,220

 

(Bill Payable dishonoured)

 

 

 

 

Page No 16.47:

Question 21:

Books of Rama

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

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

 

 

1,200

 

(Reshma’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,182

 

 

Discounting Charges A/c

Dr.

 

18

 

 

To Bills Receivable A/c

 

 

1,200

 

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

 

 

 

 

 

 

 

 

April 04

Reshma

Dr.

 

1,220

 

 

To Bank A/c

 

 

1,220

 

(Reshma’s acceptance which had been discounted, now became dishonoured and bank paid Rs 20 as Noting Charges)

 

 

 

 

 

 

 

 

April 04

Bank A/c

Dr.

 

1,220

 

 

To Cash A/c

 

 

1,220

 

(Liabilities arising on account of bill dishonoured was settled)

 

 

 

 

 

 

 

 

 

 

Books of Reshma

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

1,200

 

 

To Rama

 

 

1,200

 

(Bought goods from Rama)

 

 

 

 

 

 

 

 

Jan.01

Rama

Dr.

 

1,200

 

 

To Bills Payable A/c

 

 

1,200

 

(Bill drawn by Rama was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,200

 

 

Noting Charges A/c

Dr.

 

20

 

 

To Rama

 

 

1,220

 

(Bill Payable dishonoured)

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.01

Bills Sent for Collection A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance sent to bank for Collection)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

1,000

 

 

To Bills Sent for Collection A/c

 

 

1,000

 

(B’s acceptance became dishonoured)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

A

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,000

 

 

To A

 

 

1,000

 

(Bills Payable to A became dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.47:

Question 22:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Jan.01

Bills Sent for Collection A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance sent to bank for Collection)

 

 

 

 

 

 

 

 

April 04

B

Dr.

 

1,000

 

 

To Bills Sent for Collection A/c

 

 

1,000

 

(B’s acceptance became dishonoured)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

A

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,000

 

 

To A

 

 

1,000

 

(Bills Payable to A became dishonoured)

 

 

 

 

 

 

 

 

 

Answer:

(a)

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)

 

 

 

 

 

 

 

 

 

On honouring of the bill

 

 

 

 

Bank A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance honoured)

 

 

 

 

 

 

 

 

 

On dishonour of the bill

 

 

 

 

B

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance dishonoured)

 

 

 

 

(b)

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(Bills Receivable received from B)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

950

 

 

Discount Charges A/c

Dr.

 

50

 

 

To Bills Receivable A/c

 

 

1,000

 

(Bill acceptance discounted with bank)

 

 

 

 

 

 

 

 

 

On dishonour of the bill

 

 

 

 

B

Dr.

 

1,000

 

 

To Bank A/c

 

 

1,000

 

(B’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

(c)

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)

 

 

 

 

 

 

 

 

 

On dishonour of the bill

 

1,000

 

 

B

Dr.

 

 

1,000

 

To C

 

 

 

 

(B’s acceptance which had transferred to C now became dishonoured)

 

 

 

 

 

 

 

 

 

(d)

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)

 

 

 

 

 

 

 

 

 

Bills Sent to Bank for Collection A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Bill Sent to bank for collection)

 

 

 

 

 

 

 

 

 

On dishonour of Bill

 

 

 

 

B

Dr.

 

1,000

 

 

To Bill Sent to Bank for Collection A/c

 

 

1,000

 

(B’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.47:

Question 23:

(a)

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)

 

 

 

 

 

 

 

 

 

On honouring of the bill

 

 

 

 

Bank A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance honoured)

 

 

 

 

 

 

 

 

 

On dishonour of the bill

 

 

 

 

B

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance dishonoured)

 

 

 

 

(b)

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(Bills Receivable received from B)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

950

 

 

Discount Charges A/c

Dr.

 

50

 

 

To Bills Receivable A/c

 

 

1,000

 

(Bill acceptance discounted with bank)

 

 

 

 

 

 

 

 

 

On dishonour of the bill

 

 

 

 

B

Dr.

 

1,000

 

 

To Bank A/c

 

 

1,000

 

(B’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

(c)

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)

 

 

 

 

 

 

 

 

 

On dishonour of the bill

 

1,000

 

 

B

Dr.

 

 

1,000

 

To C

 

 

 

 

(B’s acceptance which had transferred to C now became dishonoured)

 

 

 

 

 

 

 

 

 

(d)

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)

 

 

 

 

 

 

 

 

 

Bills Sent to Bank for Collection A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Bill Sent to bank for collection)

 

 

 

 

 

 

 

 

 

On dishonour of Bill

 

 

 

 

B

Dr.

 

1,000

 

 

To Bill Sent to Bank for Collection A/c

 

 

1,000

 

(B’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

Answer:

Books of Drawer

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

100

 

 

To Drawee

 

 

100

 

(Acceptance was received from Drawee)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

95

 

 

Discount Charges A/c

Dr.

 

5

 

 

To Bills Receivable A/c

 

 

100

 

(Bill discounted with Bank)

 

 

 

 

 

 

 

 

 

Drawee

Dr.

 

102

 

 

To Bank A/c

 

 

102

 

(Bill which was discounted with bank now dishonoured and bank paid Rs 2 for noting the bill)

 

 

 

 

 

 

 

 

 

Books of Drawee

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Drawer

Dr.

 

100

 

 

To Bills Payable A/c

 

 

100

 

(Bill made by drawer was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

100

 

 

Noting Charges A/c

Dr.

 

2

 

 

To Drawer

 

 

102

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of Drawer’s Bank

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

100

 

 

To Drawer

 

 

95

 

To Discount A/c

 

 

5

 

(Bills Receivable discounted to Drawer)

 

 

 

 

 

 

 

 

 

Drawer

Dr.

 

102

 

 

To Bills Receivable A/c

 

 

100

 

To Cash A/c

 

 

2

 

(Bill Receivable dishonoured and Rs 2 paid for Noting the bill)

 

 

 

 

 

 

 

 

 

Page No 16.47:

Question 24:

Books of Drawer

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

100

 

 

To Drawee

 

 

100

 

(Acceptance was received from Drawee)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

95

 

 

Discount Charges A/c

Dr.

 

5

 

 

To Bills Receivable A/c

 

 

100

 

(Bill discounted with Bank)

 

 

 

 

 

 

 

 

 

Drawee

Dr.

 

102

 

 

To Bank A/c

 

 

102

 

(Bill which was discounted with bank now dishonoured and bank paid Rs 2 for noting the bill)

 

 

 

 

 

 

 

 

 

Books of Drawee

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Drawer

Dr.

 

100

 

 

To Bills Payable A/c

 

 

100

 

(Bill made by drawer was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

100

 

 

Noting Charges A/c

Dr.

 

2

 

 

To Drawer

 

 

102

 

(Bills Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of Drawer’s Bank

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

100

 

 

To Drawer

 

 

95

 

To Discount A/c

 

 

5

 

(Bills Receivable discounted to Drawer)

 

 

 

 

 

 

 

 

 

Drawer

Dr.

 

102

 

 

To Bills Receivable A/c

 

 

100

 

To Cash A/c

 

 

2

 

(Bill Receivable dishonoured and Rs 2 paid for Noting the bill)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Purchases A/c

Dr.

 

6,200

 

 

To B

 

 

6,200

 

(Goods purchased from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

6,200

 

 

To Bills Payable A/c

 

 

6,000

 

To Discount Received A/c

 

 

200

 

(Bill drawn by B accepted and discount allowed by him)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

6,000

 

 

Discount Received A/c

Dr.

 

200

 

 

Noting Charges A/c

Dr.

 

100

 

 

To B

 

 

6,300

 

(Bill payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

A

Dr.

 

6,200

 

 

To Sales A/c

 

 

6,200

 

(Good sold to A)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

6,000

 

 

Discount Allowed A/c

Dr.

 

200

 

 

To A

 

 

6,200

 

(B’s acceptance received and discount allowed)

 

 

 

 

 

 

 

 

 

Purchases A/c

Dr.

 

10,000

 

 

To C

 

 

10,000

 

(Goods bought from C)

 

 

 

 

 

 

 

 

 

C

Dr.

 

10,000

 

 

To Bills Receivable A/c

 

 

6,000

 

To Bank A/c

 

 

4,000

 

(Bills Receivable and Cheque given to C to settle due)

 

 

 

 

 

 

 

 

 

A

Dr.

 

6,300

 

 

To C

 

 

6,100

 

To Discount Allowed A/c

 

 

200

 

(Bill accepted by B was dishonoured and C paid Rs 100 as Noting Charges)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

10,000

 

 

To Sales A/c

 

 

10,000

 

(Goods sold to B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

6,000

 

 

Bank A/c

Dr.

 

4,000

 

 

To B

 

 

10,000

 

(Bill Receivable and Cheque received from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

6,100

 

 

To Bills Receivable A/c

 

 

6,000

 

To Cash A/c

 

 

100

 

(Bills Receivable received from B dishonoured and Rs 100 paid for noting the bill)

 

 

 

 

 

 

 

 

 



Page No 16.48:

Question 25:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Purchases A/c

Dr.

 

6,200

 

 

To B

 

 

6,200

 

(Goods purchased from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

6,200

 

 

To Bills Payable A/c

 

 

6,000

 

To Discount Received A/c

 

 

200

 

(Bill drawn by B accepted and discount allowed by him)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

6,000

 

 

Discount Received A/c

Dr.

 

200

 

 

Noting Charges A/c

Dr.

 

100

 

 

To B

 

 

6,300

 

(Bill payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

A

Dr.

 

6,200

 

 

To Sales A/c

 

 

6,200

 

(Good sold to A)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

6,000

 

 

Discount Allowed A/c

Dr.

 

200

 

 

To A

 

 

6,200

 

(B’s acceptance received and discount allowed)

 

 

 

 

 

 

 

 

 

Purchases A/c

Dr.

 

10,000

 

 

To C

 

 

10,000

 

(Goods bought from C)

 

 

 

 

 

 

 

 

 

C

Dr.

 

10,000

 

 

To Bills Receivable A/c

 

 

6,000

 

To Bank A/c

 

 

4,000

 

(Bills Receivable and Cheque given to C to settle due)

 

 

 

 

 

 

 

 

 

A

Dr.

 

6,300

 

 

To C

 

 

6,100

 

To Discount Allowed A/c

 

 

200

 

(Bill accepted by B was dishonoured and C paid Rs 100 as Noting Charges)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

10,000

 

 

To Sales A/c

 

 

10,000

 

(Goods sold to B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

6,000

 

 

Bank A/c

Dr.

 

4,000

 

 

To B

 

 

10,000

 

(Bill Receivable and Cheque received from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

6,100

 

 

To Bills Receivable A/c

 

 

6,000

 

To Cash A/c

 

 

100

 

(Bills Receivable received from B dishonoured and Rs 100 paid for noting the bill)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

500

 

 

To B

 

 

500

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

 

C

Dr.

 

500

 

 

To Bills Receivable A/c

 

 

500

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

 

B

Dr.

 

510

 

 

To C

 

 

510

 

(B’s acceptance which had endorsed in favour of C, now dishonoured)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

A

Dr.

 

500

 

 

To Bills Payable A/c

 

 

500

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

500

 

 

Noting Charges A/c

Dr.

 

10

 

 

To A

 

 

510

 

(Bill Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

500

 

 

To A

 

 

500

 

(Bill Receivable received from A)

 

 

 

 

 

 

 

 

 

D

Dr.

 

500

 

 

To Bills Receivable A/c

 

 

500

 

(Bill Receivable endorsed to C)

 

 

 

 

 

 

 

 

 

A

Dr.

 

510

 

 

To D

 

 

510

 

(Bill which had endorsed to D, now dishonoured and charges there on Rs 10)

 

 

 

 

 

 

 

 

 

Books of D

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

500

 

 

To C

 

 

500

 

(Bills Receivable received from C)

 

 

 

 

 

 

 

 

 

C

Dr.

 

510

 

 

To Bills Receivable A/c

 

 

500

 

To Cash A/c

 

 

10

 

(Bill received from C, dishonoured and Rs 10 paid for noting the dishonoured bill)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 26:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

500

 

 

To B

 

 

500

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

 

C

Dr.

 

500

 

 

To Bills Receivable A/c

 

 

500

 

(B’s acceptance endorsed in favour of C)

 

 

 

 

 

 

 

 

 

B

Dr.

 

510

 

 

To C

 

 

510

 

(B’s acceptance which had endorsed in favour of C, now dishonoured)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

A

Dr.

 

500

 

 

To Bills Payable A/c

 

 

500

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

500

 

 

Noting Charges A/c

Dr.

 

10

 

 

To A

 

 

510

 

(Bill Payable dishonoured)

 

 

 

 

 

 

 

 

 

Books of C

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

500

 

 

To A

 

 

500

 

(Bill Receivable received from A)

 

 

 

 

 

 

 

 

 

D

Dr.

 

500

 

 

To Bills Receivable A/c

 

 

500

 

(Bill Receivable endorsed to C)

 

 

 

 

 

 

 

 

 

A

Dr.

 

510

 

 

To D

 

 

510

 

(Bill which had endorsed to D, now dishonoured and charges there on Rs 10)

 

 

 

 

 

 

 

 

 

Books of D

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

500

 

 

To C

 

 

500

 

(Bills Receivable received from C)

 

 

 

 

 

 

 

 

 

C

Dr.

 

510

 

 

To Bills Receivable A/c

 

 

500

 

To Cash A/c

 

 

10

 

(Bill received from C, dishonoured and Rs 10 paid for noting the dishonoured bill)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

June 01

B

Dr.

 

250

 

 

To Sales A/c

 

 

250

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

June 01

Bills Receivable A/c

Dr.

 

250

 

 

To B

 

 

250

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

July 04

B

Dr.

 

250

 

 

To Bills Receivable A/c

 

 

250

 

(B’s acceptance was cancelled)

 

 

 

 

 

 

 

 

July 04

B

Dr.

 

10

 

 

To Interest A/c

 

 

10

 

(Interest due from B on account cancelling the bill)

 

 

 

 

 

 

 

 

July 04

Bills Receivable A/c

Dr.

 

260

 

 

To B

 

 

260

 

(New bill including interest was accepted by B)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

June 01

Purchases A/c

Dr.

 

250

 

 

To A

 

 

250

 

(Goods were bought from A)

 

 

 

 

 

 

 

 

June 01

A

Dr.

 

250

 

 

To Bills Payable A/c

 

 

250

 

(Bills drawn by A was accepted)

 

 

 

 

 

 

 

 

July 04

Bills Payable A/c

Dr.

 

250

 

 

To A

 

 

250

 

(Bill got cancelled)

 

 

 

 

 

 

 

 

July 04

Interest A/c

Dr.

 

10

 

 

To A

 

 

10

 

(Interest due to for cancelling the bill)

 

 

 

 

 

 

 

 

July 04

A

Dr.

 

260

 

 

To Bills Payable A/c

 

 

260

 

(New bill including interest drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 27:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

June 01

B

Dr.

 

250

 

 

To Sales A/c

 

 

250

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

June 01

Bills Receivable A/c

Dr.

 

250

 

 

To B

 

 

250

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

July 04

B

Dr.

 

250

 

 

To Bills Receivable A/c

 

 

250

 

(B’s acceptance was cancelled)

 

 

 

 

 

 

 

 

July 04

B

Dr.

 

10

 

 

To Interest A/c

 

 

10

 

(Interest due from B on account cancelling the bill)

 

 

 

 

 

 

 

 

July 04

Bills Receivable A/c

Dr.

 

260

 

 

To B

 

 

260

 

(New bill including interest was accepted by B)

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

June 01

Purchases A/c

Dr.

 

250

 

 

To A

 

 

250

 

(Goods were bought from A)

 

 

 

 

 

 

 

 

June 01

A

Dr.

 

250

 

 

To Bills Payable A/c

 

 

250

 

(Bills drawn by A was accepted)

 

 

 

 

 

 

 

 

July 04

Bills Payable A/c

Dr.

 

250

 

 

To A

 

 

250

 

(Bill got cancelled)

 

 

 

 

 

 

 

 

July 04

Interest A/c

Dr.

 

10

 

 

To A

 

 

10

 

(Interest due to for cancelling the bill)

 

 

 

 

 

 

 

 

July 04

A

Dr.

 

260

 

 

To Bills Payable A/c

 

 

260

 

(New bill including interest drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.01

B

Dr.

 

16,000

 

 

To Sales A/c

 

 

16,000

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

Sep.01

Bills Receivable A/c

Dr.

 

16,000

 

 

To B

 

 

16,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Dec.04

B

Dr.

 

16,000

 

 

To Bills Receivable A/c

 

 

16,000

 

(B’s acceptance was cancelled)

 

 

 

 

 

 

 

 

Dec.04

B

Dr.

 

240

 

 

To Interest A/c

 

 

240

 

(Interest due from at 9% for 2 months on the amount due)

 

 

 

 

Working Note: Interest = 16,000 × 9% × 2/12 = Rs 240

 

 

 

 

 

 

 

 

Dec.04

Cash A/c

Dr.

 

240

 

 

To Interest A/c

 

 

240

 

(Amount for interest ware received from B)

 

 

 

 

 

 

 

 

Dec.04

Bills Receivable A/c

Dr.

 

16,000

 

 

To B

 

 

16,000

 

(B accepted a new bill)

 

 

 

 

 

 

 

 

2017

 

 

 

 

Feb.07

Cash A/c

Dr.

 

16,000

 

 

To Bills Receivable A/c

 

 

16,000

 

(Payment received on honouring of the bill)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.01

Purchases A/c

Dr.

 

16,000

 

 

To A

 

 

16,000

 

(Goods were bought from A)

 

 

 

 

 

 

 

 

Sep.01

A

Dr.

 

16,000

 

 

To Bills Payable A/c

 

 

16,000

 

(Bills drawn by A was accepted)

 

 

 

 

 

 

 

 

Dec.04

Bill Payable A/c

Dr.

 

16,000

 

 

To A

 

 

16,000

 

(Bill got cancelled due to inability to pay)

 

 

 

 

 

 

 

 

Dec.04

Interest A/c

Dr.

 

240

 

 

To A

 

 

240

 

(Interest due to A at 9% p.a. for 2 months)

 

 

 

 

 

 

 

 

Dec.04

A

Dr.

 

240

 

 

To Cash A/c

 

 

240

 

(Payment for interest to A)

 

 

 

 

 

 

 

 

Dec.04

A

Dr.

 

16,000

 

 

To Bills Payable A/c

 

 

16,000

 

(New bill drawn by A was accepted)

 

 

 

2017

 

 

 

 

Feb.07

Bills Payable A/c

Dr.

 

16,000

 

 

To Cash A/c

 

 

16,000

 

(Payment of the bill made on due date)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 28:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.01

B

Dr.

 

16,000

 

 

To Sales A/c

 

 

16,000

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

Sep.01

Bills Receivable A/c

Dr.

 

16,000

 

 

To B

 

 

16,000

 

(B’s acceptance was received)

 

 

 

 

 

 

 

 

Dec.04

B

Dr.

 

16,000

 

 

To Bills Receivable A/c

 

 

16,000

 

(B’s acceptance was cancelled)

 

 

 

 

 

 

 

 

Dec.04

B

Dr.

 

240

 

 

To Interest A/c

 

 

240

 

(Interest due from at 9% for 2 months on the amount due)

 

 

 

 

Working Note: Interest = 16,000 × 9% × 2/12 = Rs 240

 

 

 

 

 

 

 

 

Dec.04

Cash A/c

Dr.

 

240

 

 

To Interest A/c

 

 

240

 

(Amount for interest ware received from B)

 

 

 

 

 

 

 

 

Dec.04

Bills Receivable A/c

Dr.

 

16,000

 

 

To B

 

 

16,000

 

(B accepted a new bill)

 

 

 

 

 

 

 

 

2017

 

 

 

 

Feb.07

Cash A/c

Dr.

 

16,000

 

 

To Bills Receivable A/c

 

 

16,000

 

(Payment received on honouring of the bill)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Sep.01

Purchases A/c

Dr.

 

16,000

 

 

To A

 

 

16,000

 

(Goods were bought from A)

 

 

 

 

 

 

 

 

Sep.01

A

Dr.

 

16,000

 

 

To Bills Payable A/c

 

 

16,000

 

(Bills drawn by A was accepted)

 

 

 

 

 

 

 

 

Dec.04

Bill Payable A/c

Dr.

 

16,000

 

 

To A

 

 

16,000

 

(Bill got cancelled due to inability to pay)

 

 

 

 

 

 

 

 

Dec.04

Interest A/c

Dr.

 

240

 

 

To A

 

 

240

 

(Interest due to A at 9% p.a. for 2 months)

 

 

 

 

 

 

 

 

Dec.04

A

Dr.

 

240

 

 

To Cash A/c

 

 

240

 

(Payment for interest to A)

 

 

 

 

 

 

 

 

Dec.04

A

Dr.

 

16,000

 

 

To Bills Payable A/c

 

 

16,000

 

(New bill drawn by A was accepted)

 

 

 

2017

 

 

 

 

Feb.07

Bills Payable A/c

Dr.

 

16,000

 

 

To Cash A/c

 

 

16,000

 

(Payment of the bill made on due date)

 

 

 

 

 

 

 

 

 

Answer:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Y

Dr.

 

4,500

 

 

To Sales A/c

 

 

4,500

 

(Goods was sold to Y)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c (Bill no 1)

Dr.

 

1,000

 

 

Bills Receivable A/c (Bill no 2)

Dr.

 

1,500

 

 

Bills Receivable A/c (Bill no 3)

Dr.

 

2,000

 

 

To Y

 

 

4,500

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

 

Jan.03

Z

Dr.

 

1,500

 

 

To Bills Receivable A/c (Bill no 2)

 

 

1,500

 

(Bill Receivable endorsed in favour of Z)

 

 

 

 

 

 

 

 

Jan.04

Bills Sent for Collection A/c

Dr.

 

2,000

 

 

To Bills Receivable A/c (Bill no 3)

 

 

2,000

 

(Bill Sent to bank for Collection)

 

 

 

 

 

 

 

 

Feb.04

Y

Dr.

 

1,010

 

 

To Bills Receivable A/c (Bill no 1)

 

 

1,000

 

To Cash A/c

 

 

10

 

(Bill dishonoured whose maturity period was 1 month)

 

 

 

 

 

 

 

 

Mar.04

Y

Dr.

 

1,515

 

 

To Z

 

 

1,515

 

(Bill endorsed to Z dishonoured)

 

 

 

 

 

 

 

 

April 04

Y

Dr.

 

2,020

 

 

To Bill Sent for Collection A/c

 

 

2,000

 

To Bank A/c

 

 

20

 

(Bill which had sent to bank for collection, now dishonoured and bank paid noting charges)

 

 

 

 

 

 

 

 

 

Books of Y

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

4,500

 

 

To X

 

 

4,500

 

(Goods were bought from X)

 

 

 

 

 

 

 

 

Jan.01

X

Dr.

 

4,500

 

 

To Bills Payable A/c (Bill no 1)

 

 

1,000

 

To Bills Payable A/c (Bill no 2)

 

 

1,500

 

To Bills Payable A/c (Bill no 3)

 

 

2,000

 

(Bill drawn by X was accepted)

 

 

 

 

 

 

 

 

Feb.04

Bills Payable A/c (Bill no 1)

Dr.

 

1,000

 

 

Noting Charges A/c

Dr.

 

10

 

 

To X

 

 

1,010

 

(Bill Payable for 1 month was dishonoured)

 

 

 

 

 

 

 

 

Mar.04

Bills Payable A/c (Bill no 2)

Dr.

 

1,500

 

 

Noting Charges A/c

Dr.

 

15

 

 

To X

 

 

1,515

 

(Bill no 2 was dishonoured)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c (Bill no 3)

Dr.

 

2,000

 

 

Noting Charges A/c

Dr.

 

20

 

 

To X

 

 

2,020

 

(Bills no 3 dishonoured)

 

 

 

 

 

 

 

 

 

Books of Z

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.03

Bills Receivable A/c

Dr.

 

2,000

 

 

To X

 

 

2,000

 

(Bill Receivable received from X)

 

 

 

 

 

 

 

 

April 04

X

Dr.

 

1,515

 

 

To Bills Receivable A/c

 

 

1,500

 

To Bank A/c

 

 

15

 

(Bill received from X was dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 29:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Y

Dr.

 

4,500

 

 

To Sales A/c

 

 

4,500

 

(Goods was sold to Y)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c (Bill no 1)

Dr.

 

1,000

 

 

Bills Receivable A/c (Bill no 2)

Dr.

 

1,500

 

 

Bills Receivable A/c (Bill no 3)

Dr.

 

2,000

 

 

To Y

 

 

4,500

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

 

Jan.03

Z

Dr.

 

1,500

 

 

To Bills Receivable A/c (Bill no 2)

 

 

1,500

 

(Bill Receivable endorsed in favour of Z)

 

 

 

 

 

 

 

 

Jan.04

Bills Sent for Collection A/c

Dr.

 

2,000

 

 

To Bills Receivable A/c (Bill no 3)

 

 

2,000

 

(Bill Sent to bank for Collection)

 

 

 

 

 

 

 

 

Feb.04

Y

Dr.

 

1,010

 

 

To Bills Receivable A/c (Bill no 1)

 

 

1,000

 

To Cash A/c

 

 

10

 

(Bill dishonoured whose maturity period was 1 month)

 

 

 

 

 

 

 

 

Mar.04

Y

Dr.

 

1,515

 

 

To Z

 

 

1,515

 

(Bill endorsed to Z dishonoured)

 

 

 

 

 

 

 

 

April 04

Y

Dr.

 

2,020

 

 

To Bill Sent for Collection A/c

 

 

2,000

 

To Bank A/c

 

 

20

 

(Bill which had sent to bank for collection, now dishonoured and bank paid noting charges)

 

 

 

 

 

 

 

 

 

Books of Y

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

4,500

 

 

To X

 

 

4,500

 

(Goods were bought from X)

 

 

 

 

 

 

 

 

Jan.01

X

Dr.

 

4,500

 

 

To Bills Payable A/c (Bill no 1)

 

 

1,000

 

To Bills Payable A/c (Bill no 2)

 

 

1,500

 

To Bills Payable A/c (Bill no 3)

 

 

2,000

 

(Bill drawn by X was accepted)

 

 

 

 

 

 

 

 

Feb.04

Bills Payable A/c (Bill no 1)

Dr.

 

1,000

 

 

Noting Charges A/c

Dr.

 

10

 

 

To X

 

 

1,010

 

(Bill Payable for 1 month was dishonoured)

 

 

 

 

 

 

 

 

Mar.04

Bills Payable A/c (Bill no 2)

Dr.

 

1,500

 

 

Noting Charges A/c

Dr.

 

15

 

 

To X

 

 

1,515

 

(Bill no 2 was dishonoured)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c (Bill no 3)

Dr.

 

2,000

 

 

Noting Charges A/c

Dr.

 

20

 

 

To X

 

 

2,020

 

(Bills no 3 dishonoured)

 

 

 

 

 

 

 

 

 

Books of Z

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.03

Bills Receivable A/c

Dr.

 

2,000

 

 

To X

 

 

2,000

 

(Bill Receivable received from X)

 

 

 

 

 

 

 

 

April 04

X

Dr.

 

1,515

 

 

To Bills Receivable A/c

 

 

1,500

 

To Bank A/c

 

 

15

 

(Bill received from X was dishonoured)

 

 

 

 

 

 

 

 

 

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Ram’s A/c

Dr.

 

2,010

 

 

 

To Shyam’s A/c

 

 

 

2,010

 

(Endorsed Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,000

 

 

 

To Ram’s A/c

 

 

 

1,000

 

(Part payment is received in cash)

 

 

 

 

 

 

 

 

 

 

 

Ram’s A/c

Dr.

 

30.30

 

 

 

To Interest A/c

 

 

 

30.30

 

(Interest due on the remaining amount of Rs 1,010)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

1,040.30

 

 

 

To Ram’s A/c

 

 

 

1,040.30

 

(New bills receivable received)

 

 

 

 

 

 

 

 

 

 

 

Shyam’s A/c

Dr.

 

2,010

 

 

 

To Bank A/c

 

 

 

2,010

 

(Shyam’s account is settled by cheque)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Page No 16.48:

Question 30:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Ram’s A/c

Dr.

 

2,010

 

 

 

To Shyam’s A/c

 

 

 

2,010

 

(Endorsed Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,000

 

 

 

To Ram’s A/c

 

 

 

1,000

 

(Part payment is received in cash)

 

 

 

 

 

 

 

 

 

 

 

Ram’s A/c

Dr.

 

30.30

 

 

 

To Interest A/c

 

 

 

30.30

 

(Interest due on the remaining amount of Rs 1,010)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

1,040.30

 

 

 

To Ram’s A/c

 

 

 

1,040.30

 

(New bills receivable received)

 

 

 

 

 

 

 

 

 

 

 

Shyam’s A/c

Dr.

 

2,010

 

 

 

To Bank A/c

 

 

 

2,010

 

(Shyam’s account is settled by cheque)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Answer:

Books of Mohan

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

2,000

 

 

To Ram

 

 

2,000

 

(Ram’s acceptance received)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,970

 

 

Discounting Charges A/c

Dr.

 

30

 

 

To Bills Receivable A/c

 

 

2,000

 

(Ram’s acceptance was discounted at 6% p. a. for 3 months)

 

 

 

 

 

 

 

 

April 04

Ram

Dr.

 

2,020

 

 

To Bank

 

 

2,020

 

(Ram’s acceptance which was discounted with bank dishonoured)

 

 

 

 

 

 

 

 

April 04

Cash A/c

Dr.

 

520

 

 

To Ram

 

 

520

 

(Cash received from Ram)

 

 

 

 

 

 

 

 

April 04

Ram

Dr.

 

34

 

 

To Interest A/c

 

 

34

 

(Interest due from on amount outstanding at 9% p. a. for 3 months)

 

 

 

 

Working Note: Interest = 1,500 × 9% × 3/12 = Rs 34

 

 

 

 

 

 

 

 

April 04

Bill Receivable A/c

Dr.

 

1,534

 

 

To Ram

 

 

1,534

 

(Ram’s acceptance received for outstanding amount including interest)

 

 

 

 

 

 

 

 

April 04

Cash A/c

Dr.

 

1,534

 

 

To Bills Receivable A/c

 

 

1,534

 

(Cash received on honouring of bill)

 

 

 

 

 

 

 

 

 

Books of Ram

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Mohan

Dr.

 

2,000

 

 

To Bills Payable A/c

 

 

2,000

 

(Bill drawn by Mohan was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

2,000

 

 

Noting Charges A/c

Dr.

 

20

 

 

To Mohan

 

 

2,020

 

(Bill dishonoured on its due date)

 

 

 

 

 

 

 

 

April 04

Mohan

Dr.

 

520

 

 

To Cash A/c

 

 

520

 

(Cash paid to Mohan)

 

 

 

 

 

 

 

 

April 04

Interest A/c

Dr.

 

34

 

 

To Mohan

 

 

34

 

(Interest due to Mohan on outstanding balance for 3 months)

 

 

 

 

 

 

 

 

April 04

Mohan

Dr.

 

1,534

 

 

To Bills Payable A/c

 

 

1,534

 

(Bill accepted for the amount outstanding including interest to Mohan)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,534

 

 

To Cash A/c

 

 

1,534

 

(Bill discharged on maturity)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 31:

Books of Mohan

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

2,000

 

 

To Ram

 

 

2,000

 

(Ram’s acceptance received)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,970

 

 

Discounting Charges A/c

Dr.

 

30

 

 

To Bills Receivable A/c

 

 

2,000

 

(Ram’s acceptance was discounted at 6% p. a. for 3 months)

 

 

 

 

 

 

 

 

April 04

Ram

Dr.

 

2,020

 

 

To Bank

 

 

2,020

 

(Ram’s acceptance which was discounted with bank dishonoured)

 

 

 

 

 

 

 

 

April 04

Cash A/c

Dr.

 

520

 

 

To Ram

 

 

520

 

(Cash received from Ram)

 

 

 

 

 

 

 

 

April 04

Ram

Dr.

 

34

 

 

To Interest A/c

 

 

34

 

(Interest due from on amount outstanding at 9% p. a. for 3 months)

 

 

 

 

Working Note: Interest = 1,500 × 9% × 3/12 = Rs 34

 

 

 

 

 

 

 

 

April 04

Bill Receivable A/c

Dr.

 

1,534

 

 

To Ram

 

 

1,534

 

(Ram’s acceptance received for outstanding amount including interest)

 

 

 

 

 

 

 

 

April 04

Cash A/c

Dr.

 

1,534

 

 

To Bills Receivable A/c

 

 

1,534

 

(Cash received on honouring of bill)

 

 

 

 

 

 

 

 

 

Books of Ram

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Mohan

Dr.

 

2,000

 

 

To Bills Payable A/c

 

 

2,000

 

(Bill drawn by Mohan was accepted)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

2,000

 

 

Noting Charges A/c

Dr.

 

20

 

 

To Mohan

 

 

2,020

 

(Bill dishonoured on its due date)

 

 

 

 

 

 

 

 

April 04

Mohan

Dr.

 

520

 

 

To Cash A/c

 

 

520

 

(Cash paid to Mohan)

 

 

 

 

 

 

 

 

April 04

Interest A/c

Dr.

 

34

 

 

To Mohan

 

 

34

 

(Interest due to Mohan on outstanding balance for 3 months)

 

 

 

 

 

 

 

 

April 04

Mohan

Dr.

 

1,534

 

 

To Bills Payable A/c

 

 

1,534

 

(Bill accepted for the amount outstanding including interest to Mohan)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

1,534

 

 

To Cash A/c

 

 

1,534

 

(Bill discharged on maturity)

 

 

 

 

 

 

 

 

 

Answer:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

June 15

Y

Dr.

 

15,000

 

 

To Sales A/c

 

 

15,000

 

(Goods were sold to Y)

 

 

 

 

 

 

 

 

June 15

Bills Receivable A/c (Bill no 1)

Dr.

 

10,000

 

 

Bills Receivable A/c (Bill no 2)

Dr.

 

5,000

 

 

To Y

 

 

15,000

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

June 15

Bank A/c

Dr.

 

9,900

 

 

Discounting Charges A/c

Dr.

 

100

 

 

To Bills Receivable A/c (Bill no 1)

 

 

10,000

 

(Bill no 1 which was issued for two months discounted at 6% p.a. for two months)

 

 

 

 

 

 

 

 

June 15

Z

Dr.

 

5,000

 

 

To Bills Receivable A/c (Bill no 2)

 

 

5,000

 

(Y’s acceptance Bill no 2 endorsed in favour of Z)

 

 

 

 

 

 

 

 

 Sep.18

Y

Dr.

 

5,050

 

 

To Z

 

 

5,050

 

(Y’s acceptance which had endorsed in favour Z dishonoured)

 

 

 

 

 

 

 

 

Oct.01

Y

Dr.

 

50

 

 

To Interest A/c

 

 

50

 

(Interest due from Y)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

5,100

 

 

To Y

 

 

5,100

 

(Amount due from Y received)

 

 

 

 

 

 

 

 

 

Books of Y

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

June 15

Purchases A/c

Dr.

 

15,000

 

 

To X

 

 

15,000

 

(Goods were bought from X)

 

 

 

 

 

 

 

 

June 15

X

Dr.

 

15,000

 

 

To Bills Payable A/c (Bill no 1)

 

 

10,000

 

To Bills Payable A/c (Bill no 2)

 

 

5,000

 

(Bills drawn by X were accepted)

 

 

 

 

 

 

 

 

Aug.18

Bills Payable A/c (Bill no 1)

Dr.

 

10,000

 

 

To Bank A/c

 

 

10,000

 

(Payment made for bill on maturity)

 

 

 

 

 

 

 

 

 Sep.18

Bills Payable A/c (Bill no 2)

Dr.

 

5,000

 

 

Noting Charges A/c

Dr.

 

50

 

 

To X

 

 

5,050

 

(Bill dishonoured)

 

 

 

 

 

 

 

 

Oct.01

Interest A/c

Dr.

 

50

 

 

To X

 

 

50

 

(Interest due to X)

 

 

 

 

 

 

 

 

Oct.01

X

Dr.

 

5,100

 

 

To Cash A/c

 

 

5,100

 

(Payment made to X)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 32:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

June 15

Y

Dr.

 

15,000

 

 

To Sales A/c

 

 

15,000

 

(Goods were sold to Y)

 

 

 

 

 

 

 

 

June 15

Bills Receivable A/c (Bill no 1)

Dr.

 

10,000

 

 

Bills Receivable A/c (Bill no 2)

Dr.

 

5,000

 

 

To Y

 

 

15,000

 

(Y’s acceptance was received)

 

 

 

 

 

 

 

 

June 15

Bank A/c

Dr.

 

9,900

 

 

Discounting Charges A/c

Dr.

 

100

 

 

To Bills Receivable A/c (Bill no 1)

 

 

10,000

 

(Bill no 1 which was issued for two months discounted at 6% p.a. for two months)

 

 

 

 

 

 

 

 

June 15

Z

Dr.

 

5,000

 

 

To Bills Receivable A/c (Bill no 2)

 

 

5,000

 

(Y’s acceptance Bill no 2 endorsed in favour of Z)

 

 

 

 

 

 

 

 

 Sep.18

Y

Dr.

 

5,050

 

 

To Z

 

 

5,050

 

(Y’s acceptance which had endorsed in favour Z dishonoured)

 

 

 

 

 

 

 

 

Oct.01

Y

Dr.

 

50

 

 

To Interest A/c

 

 

50

 

(Interest due from Y)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

5,100

 

 

To Y

 

 

5,100

 

(Amount due from Y received)

 

 

 

 

 

 

 

 

 

Books of Y

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

June 15

Purchases A/c

Dr.

 

15,000

 

 

To X

 

 

15,000

 

(Goods were bought from X)

 

 

 

 

 

 

 

 

June 15

X

Dr.

 

15,000

 

 

To Bills Payable A/c (Bill no 1)

 

 

10,000

 

To Bills Payable A/c (Bill no 2)

 

 

5,000

 

(Bills drawn by X were accepted)

 

 

 

 

 

 

 

 

Aug.18

Bills Payable A/c (Bill no 1)

Dr.

 

10,000

 

 

To Bank A/c

 

 

10,000

 

(Payment made for bill on maturity)

 

 

 

 

 

 

 

 

 Sep.18

Bills Payable A/c (Bill no 2)

Dr.

 

5,000

 

 

Noting Charges A/c

Dr.

 

50

 

 

To X

 

 

5,050

 

(Bill dishonoured)

 

 

 

 

 

 

 

 

Oct.01

Interest A/c

Dr.

 

50

 

 

To X

 

 

50

 

(Interest due to X)

 

 

 

 

 

 

 

 

Oct.01

X

Dr.

 

5,100

 

 

To Cash A/c

 

 

5,100

 

(Payment made to X)

 

 

 

 

 

 

 

 

 

Answer:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

2,000

 

 

Discount Allowed A/c

Dr.

 

50

 

 

To Y

 

 

2,050

 

(Y’s acceptance was received and discount allowed)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,980

 

 

Discount Charges A/c

Dr.

 

20

 

 

To Bills Receivable A/c

 

 

2,000

 

(Y’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

Books of Y.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

X

Dr.

 

2,050

 

 

To Bills Payable A/c

 

 

2,000

 

To Discount Received A/c

 

 

50

 

(Bill drawn by X was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

2,000

 

 

To Bank A/c

 

 

2,000

 

(Payment made for meeting the bill)

 

 

 

 

 

 

 

 

 

Journal entries – In case bill is dishonoured

 

Books of X.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

2,000

 

 

Discount Allowed A/c

Dr.

 

50

 

 

To Y

 

 

2,050

 

(Y’s acceptance was received and discount allowed)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,980

 

 

Discount Charges A/c

Dr.

 

20

 

 

To Bills Receivable A/c

 

 

2,000

 

(Y’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

Y

Dr.

 

2,050

 

 

To Bank A/c

 

 

2,000

 

To Discount Allowed A/c

 

 

50

 

(Y’s acceptance became dishonoured)

 

 

 

 

 

 

 

 

 

Books of Y.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

X

Dr.

 

2,050

 

 

To Bills Payable A/c

 

 

2,000

 

To Discount Received A/c

 

 

50

 

(Bill drawn by X was accepted and discount received)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

2,000

 

 

Discount Received A/c

Dr.

 

50

 

 

To X

 

 

2,050

 

(Bill became dishonoured)

 

 

 

 

 

 

 

 

 

Page No 16.48:

Question 33:

Books of X

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

2,000

 

 

Discount Allowed A/c

Dr.

 

50

 

 

To Y

 

 

2,050

 

(Y’s acceptance was received and discount allowed)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,980

 

 

Discount Charges A/c

Dr.

 

20

 

 

To Bills Receivable A/c

 

 

2,000

 

(Y’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

Books of Y.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

X

Dr.

 

2,050

 

 

To Bills Payable A/c

 

 

2,000

 

To Discount Received A/c

 

 

50

 

(Bill drawn by X was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

2,000

 

 

To Bank A/c

 

 

2,000

 

(Payment made for meeting the bill)

 

 

 

 

 

 

 

 

 

Journal entries – In case bill is dishonoured

 

Books of X.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

2,000

 

 

Discount Allowed A/c

Dr.

 

50

 

 

To Y

 

 

2,050

 

(Y’s acceptance was received and discount allowed)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

1,980

 

 

Discount Charges A/c

Dr.

 

20

 

 

To Bills Receivable A/c

 

 

2,000

 

(Y’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

Y

Dr.

 

2,050

 

 

To Bank A/c

 

 

2,000

 

To Discount Allowed A/c

 

 

50

 

(Y’s acceptance became dishonoured)

 

 

 

 

 

 

 

 

 

Books of Y.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

Jan.01

X

Dr.

 

2,050

 

 

To Bills Payable A/c

 

 

2,000

 

To Discount Received A/c

 

 

50

 

(Bill drawn by X was accepted and discount received)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

2,000

 

 

Discount Received A/c

Dr.

 

50

 

 

To X

 

 

2,050

 

(Bill became dishonoured)

 

 

 

 

 

 

 

 

 

Answer:

Books of Merchant & Co.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

May 01

AB & Co

Dr.

 

500

 

 

To Sales A/c

 

 

500

 

(Goods were sold to AB & Co)

 

 

 

 

 

 

 

 

May 01

Bills Receivable A/c

Dr.

 

500

 

 

To AB & Co

 

 

500

 

(AB & Co’s acceptance was received)

 

 

 

 

 

 

 

 

Aug.04

AB & Co

Dr.

 

500

 

 

To Bills Receivable A/c

 

 

500

 

(AB & Co’s acceptance was cancelled)

 

 

 

 

 

 

 

 

Aug.04

Cash A/c

Dr.

 

200

 

 

To AB & Co

 

 

200

 

(Cash received from AB & Co)

 

 

 

 

 

 

 

 

Aug.04

AB & Co

 

4.50

 

 

To Interest A/c

 

 

4.50

 

(Interest-due from AB & Co at 6% p.a. for 3 months)

 

 

 

 

Working Note: 300 × 6% × 3/12 = Rs 4.50

 

 

 

 

 

 

 

 

Aug.04

Bills Receivable A/c

Dr.

 

304.50

 

 

To AB & Co

 

 

304.50

 

(AB & Co’s acceptance was received including the interest for 3 months)

 

 

 

 

 

 

304.50

 

Nov.07

Cash A/c

Dr.

 

 

304.50

 

To Bills Receivable A/c

 

 

 

 

(Payment received on maturity the bill)

 

 

 

 

 

 

 

 

 

 

Books of AB & Co

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

May 01

Purchases A/c

Dr.

 

500

 

 

To Merchant & Co

 

 

500

 

(Goods were bought from Merchant & Co)

 

 

 

 

 

 

 

 

May 01

Merchant & Co

Dr.

 

500

 

 

To Bills Payable A/c

 

 

500

 

(Bill drawn by Merchant & Co was accepted)

 

 

 

 

 

 

 

 

Aug.04

Bills Payable A/c

Dr.

 

500

 

 

To Merchant & Co

 

 

500

 

(Bill got cancelled)

 

 

 

 

 

 

 

 

Aug.04

Merchant & Co

Dr.

 

200

 

 

To Cash A/c

 

 

200

 

(Cash paid to Merchant & Co)

 

 

 

 

 

 

 

 

Aug.04

Interest A/c

Dr.

 

4.50

 

 

To Merchant & Co

 

 

4.50

 

(Interest due to Merchant & Co at 6% p.a. for 3 months on the amount due)

 

 

 

 

 

 

 

 

Aug.04

Merchant & Co

Dr.

 

304.50

 

 

To Bill Payable A/c

 

 

304.50

 

(New bill drawn by Merchant & Co was accepted)

 

 

 

 

 

 

 

 

Nov.07

Bills Payable A/c

Dr.

 

304.50

 

 

To Cash A/c

 

 

304.50

 

(Cash paid for honouring the bill)

 

 

 

 

 

 

 

 

Page No 16.48:

Question 34:

Books of Merchant & Co.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

May 01

AB & Co

Dr.

 

500

 

 

To Sales A/c

 

 

500

 

(Goods were sold to AB & Co)

 

 

 

 

 

 

 

 

May 01

Bills Receivable A/c

Dr.

 

500

 

 

To AB & Co

 

 

500

 

(AB & Co’s acceptance was received)

 

 

 

 

 

 

 

 

Aug.04

AB & Co

Dr.

 

500

 

 

To Bills Receivable A/c

 

 

500

 

(AB & Co’s acceptance was cancelled)

 

 

 

 

 

 

 

 

Aug.04

Cash A/c

Dr.

 

200

 

 

To AB & Co

 

 

200

 

(Cash received from AB & Co)

 

 

 

 

 

 

 

 

Aug.04

AB & Co

 

4.50

 

 

To Interest A/c

 

 

4.50

 

(Interest-due from AB & Co at 6% p.a. for 3 months)

 

 

 

 

Working Note: 300 × 6% × 3/12 = Rs 4.50

 

 

 

 

 

 

 

 

Aug.04

Bills Receivable A/c

Dr.

 

304.50

 

 

To AB & Co

 

 

304.50

 

(AB & Co’s acceptance was received including the interest for 3 months)

 

 

 

 

 

 

304.50

 

Nov.07

Cash A/c

Dr.

 

 

304.50

 

To Bills Receivable A/c

 

 

 

 

(Payment received on maturity the bill)

 

 

 

 

 

 

 

 

 

 

Books of AB & Co

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2016

 

 

 

 

May 01

Purchases A/c

Dr.

 

500

 

 

To Merchant & Co

 

 

500

 

(Goods were bought from Merchant & Co)

 

 

 

 

 

 

 

 

May 01

Merchant & Co

Dr.

 

500

 

 

To Bills Payable A/c

 

 

500

 

(Bill drawn by Merchant & Co was accepted)

 

 

 

 

 

 

 

 

Aug.04

Bills Payable A/c

Dr.

 

500

 

 

To Merchant & Co

 

 

500

 

(Bill got cancelled)

 

 

 

 

 

 

 

 

Aug.04

Merchant & Co

Dr.

 

200

 

 

To Cash A/c

 

 

200

 

(Cash paid to Merchant & Co)

 

 

 

 

 

 

 

 

Aug.04

Interest A/c

Dr.

 

4.50

 

 

To Merchant & Co

 

 

4.50

 

(Interest due to Merchant & Co at 6% p.a. for 3 months on the amount due)

 

 

 

 

 

 

 

 

Aug.04

Merchant & Co

Dr.

 

304.50

 

 

To Bill Payable A/c

 

 

304.50

 

(New bill drawn by Merchant & Co was accepted)

 

 

 

 

 

 

 

 

Nov.07

Bills Payable A/c

Dr.

 

304.50

 

 

To Cash A/c

 

 

304.50

 

(Cash paid for honouring the bill)

 

 

 

 

 

 

 

 

Answer:

Journal

In the Books of X

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Bills Receivable A/c (1)

Dr.

 

6,000

 

 

Bills Receivable A/c (2)

Dr.

 

8,000

 

 

Bills Receivable A/c (3)

Dr.

 

10,000

 

 

 

To Y’s A/c

 

 

 

24,000

 

(Bills of exchange were received from Y)

 

 

 

 

 

 

 

 

 

 

Jan. 03

Bank A/c

Dr.

 

5,850

 

 

Discounting Charges A/c

Dr.

 

150

 

 

 

To Bills Receivable A/c (1)

 

 

 

6,000

 

(Bills receivable discounted with the bank)

 

 

 

 

 

 

 

 

 

 

Feb. 01

Z’s A/c

Dr.

 

10,000

 

 

 

To Bills Receivable A/c (3)

 

 

 

10,000

 

(Bills receivable endorsed in favour of Z)

 

 

 

 

 

 

 

 

 

 

April 04

Y’s A/c

Dr.

 

10,000

 

 

 

To Z’s A/c

 

 

 

10,000

 

(Endorsed bills receivable was dishonoured)

 

 

 

 

 

 

 

 

 

 

May 04

Y’s A/c

Dr.

 

8,000

 

 

 

To Bills Receivable A/c (2)

 

 

 

8,000

 

(Bills receivable was dishonoured)

 

 

 

 

 

 

 

 

 

 

July 04

Y’s A/c

Dr.

 

6,000

 

 

 

To Bank A/c

 

 

 

6,000

 

(Bills receivable discounted with the bank was dishonoured)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Discounting Charges

Journal

In the Books of Y

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

X’s A/c

Dr.

 

24,000

 

 

 To Bills Payable A/c (1)

 

 

6,000

 

 To Bills Payable A/c (2)

 

 

8,000

 

 To Bills Payable A/c (3)

 

 

10,000

 

(Bills of exchange were given to X)

 

 

 

 

 

 

 

 

Apr. 04

Bills Payable A/c (3)

Dr.

 

10,000

 

 

To X’s A/c

 

 

10,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

May. 04

Bills Payable A/c (2)

Dr.

 

8,000

 

 

 To X’s A/c

 

 

8,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

Jul. 04

Bills Payable A/c (1)

Dr.

 

6,000

 

 

To X’s A/c 

 

 

6,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

 



Page No 16.49:

Question 35:

Journal

In the Books of X

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Bills Receivable A/c (1)

Dr.

 

6,000

 

 

Bills Receivable A/c (2)

Dr.

 

8,000

 

 

Bills Receivable A/c (3)

Dr.

 

10,000

 

 

 

To Y’s A/c

 

 

 

24,000

 

(Bills of exchange were received from Y)

 

 

 

 

 

 

 

 

 

 

Jan. 03

Bank A/c

Dr.

 

5,850

 

 

Discounting Charges A/c

Dr.

 

150

 

 

 

To Bills Receivable A/c (1)

 

 

 

6,000

 

(Bills receivable discounted with the bank)

 

 

 

 

 

 

 

 

 

 

Feb. 01

Z’s A/c

Dr.

 

10,000

 

 

 

To Bills Receivable A/c (3)

 

 

 

10,000

 

(Bills receivable endorsed in favour of Z)

 

 

 

 

 

 

 

 

 

 

April 04

Y’s A/c

Dr.

 

10,000

 

 

 

To Z’s A/c

 

 

 

10,000

 

(Endorsed bills receivable was dishonoured)

 

 

 

 

 

 

 

 

 

 

May 04

Y’s A/c

Dr.

 

8,000

 

 

 

To Bills Receivable A/c (2)

 

 

 

8,000

 

(Bills receivable was dishonoured)

 

 

 

 

 

 

 

 

 

 

July 04

Y’s A/c

Dr.

 

6,000

 

 

 

To Bank A/c

 

 

 

6,000

 

(Bills receivable discounted with the bank was dishonoured)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Discounting Charges

Journal

In the Books of Y

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

X’s A/c

Dr.

 

24,000

 

 

 To Bills Payable A/c (1)

 

 

6,000

 

 To Bills Payable A/c (2)

 

 

8,000

 

 To Bills Payable A/c (3)

 

 

10,000

 

(Bills of exchange were given to X)

 

 

 

 

 

 

 

 

Apr. 04

Bills Payable A/c (3)

Dr.

 

10,000

 

 

To X’s A/c

 

 

10,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

May. 04

Bills Payable A/c (2)

Dr.

 

8,000

 

 

 To X’s A/c

 

 

8,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

Jul. 04

Bills Payable A/c (1)

Dr.

 

6,000

 

 

To X’s A/c 

 

 

6,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

 

Answer:

Case (a) If the bill is dishonoured

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To A

 

 

4,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

3,800

 

 

Discount Charges A/c

Dr.

 

200

 

 

To Bills Receivable A/c

 

 

4,000

 

(A’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

A

Dr.

 

4,000

 

 

To Bank A/c

 

 

4,000

 

(A’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

 

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

4,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

4,000

 

 

To B

 

 

4,000

 

(Bill drawn by B was dishonoured on maturity)

 

 

 

 

 

 

 

 

 

 

Case (b) The bills met at maturity

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To A

 

 

4,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr

 

3,800

 

 

Discount Charges A/c

Dr.

 

200

 

 

To Bills Receivable A/c

 

 

4,000

 

(A’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

4,000

 

(Bills drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bill Payable A/c

Dr.

 

4,000

 

 

To Cash A/c

 

 

4,000

 

(Payment made meeting the bill on maturity)

 

 

 

 

 

 

 

 

 

Case (c) If bill is retired under rebate at 6% p.a. 2 months before its maturity

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To A

 

 

4,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

3,960

 

 

Rebate A/c

Dr.

 

40

 

 

To Bills Receivable A/c

 

 

4,000

 

(Payment received 2 months before its maturity and gave rebate)

 

 

 

 

 

 

 

 

In this case the question says that the bill is already discounted with the bank. It means that the payment on the bill is already received and now the bank is the holder of the bill. Here, it is not possible to retire the bill on rebate (which happens only when the bill is held till maturity). Therefore, it has been assumed that the bill has not been discounted from bank (and therefore discounting entry is not passed) and it is retired at rebate @ 6% p.a. for 2 months                           

Working Note:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

4,000

 

(Bill drawn by B was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

4,000

 

 

To Cash A/c

 

 

3,960

 

To Rebate A/c

 

 

40

 

(Bill discharge before 2 months of its due date and rebate was received)

 

 

 

 

 

 

 

 

 

Page No 16.49:

Question 36:

Case (a) If the bill is dishonoured

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To A

 

 

4,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

3,800

 

 

Discount Charges A/c

Dr.

 

200

 

 

To Bills Receivable A/c

 

 

4,000

 

(A’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

A

Dr.

 

4,000

 

 

To Bank A/c

 

 

4,000

 

(A’s acceptance dishonoured)

 

 

 

 

 

 

 

 

 

 

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

4,000

 

(Bill drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

4,000

 

 

To B

 

 

4,000

 

(Bill drawn by B was dishonoured on maturity)

 

 

 

 

 

 

 

 

 

 

Case (b) The bills met at maturity

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To A

 

 

4,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr

 

3,800

 

 

Discount Charges A/c

Dr.

 

200

 

 

To Bills Receivable A/c

 

 

4,000

 

(A’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

 

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

4,000

 

(Bills drawn by A was accepted)

 

 

 

 

 

 

 

 

 

Bill Payable A/c

Dr.

 

4,000

 

 

To Cash A/c

 

 

4,000

 

(Payment made meeting the bill on maturity)

 

 

 

 

 

 

 

 

 

Case (c) If bill is retired under rebate at 6% p.a. 2 months before its maturity

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Receivable A/c

Dr.

 

4,000

 

 

To A

 

 

4,000

 

(A’s acceptance was received)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

3,960

 

 

Rebate A/c

Dr.

 

40

 

 

To Bills Receivable A/c

 

 

4,000

 

(Payment received 2 months before its maturity and gave rebate)

 

 

 

 

 

 

 

 

In this case the question says that the bill is already discounted with the bank. It means that the payment on the bill is already received and now the bank is the holder of the bill. Here, it is not possible to retire the bill on rebate (which happens only when the bill is held till maturity). Therefore, it has been assumed that the bill has not been discounted from bank (and therefore discounting entry is not passed) and it is retired at rebate @ 6% p.a. for 2 months                           

Working Note:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

4,000

 

 

To Bills Payable A/c

 

 

4,000

 

(Bill drawn by B was accepted)

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

4,000

 

 

To Cash A/c

 

 

3,960

 

To Rebate A/c

 

 

40

 

(Bill discharge before 2 months of its due date and rebate was received)

 

 

 

 

 

 

 

 

 

Answer:

Books of Amar

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bhola

Dr.

 

10,000

 

 

To Sales A/c

 

 

10,000

 

(Goods were sold to Bhola)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

10,000

 

 

To Bhola

 

 

10,000

 

(Bhola’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

9,850

 

 

Discount Charges A/c

Dr.

 

150

 

 

 To Bills Receivable A/c

 

 

10,000

 

(Bhola’s acceptance discounted with bank)

 

 

 

 

 

 

 

 

 

Bhola

Dr.

 

10,100

 

 

To Bank A/c

 

 

10,100

 

(Bhola’s acceptance declared dishonoured)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

10,100

 

 

To Cash A/c

 

 

10,100

 

(Payment made to bank with noting charges for dishonoring of the bill)

 

 

 

 

 

 

 

 

 

Bhola

Dr.

 

150

 

 

To Interest A/c

 

 

150

 

(Interest due from Bhola for on account of bill dishonor)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

10,250

 

   To Bhola     10,250
  (New bill accepted by Bhola for the amount due including rating charges and interest)      
         
  Cash A/c Dr.   10,250  

 

To Bills Receivable A/c

 

 

10,250

 

(Amount received)

 

 

 

 

 

 

 

 

 

Page No 16.49:

Question 37:

Books of Amar

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bhola

Dr.

 

10,000

 

 

To Sales A/c

 

 

10,000

 

(Goods were sold to Bhola)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

10,000

 

 

To Bhola

 

 

10,000

 

(Bhola’s acceptance was received)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

9,850

 

 

Discount Charges A/c

Dr.

 

150

 

 

 To Bills Receivable A/c

 

 

10,000

 

(Bhola’s acceptance discounted with bank)

 

 

 

 

 

 

 

 

 

Bhola

Dr.

 

10,100

 

 

To Bank A/c

 

 

10,100

 

(Bhola’s acceptance declared dishonoured)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

10,100

 

 

To Cash A/c

 

 

10,100

 

(Payment made to bank with noting charges for dishonoring of the bill)

 

 

 

 

 

 

 

 

 

Bhola

Dr.

 

150

 

 

To Interest A/c

 

 

150

 

(Interest due from Bhola for on account of bill dishonor)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

10,250

 

   To Bhola     10,250
  (New bill accepted by Bhola for the amount due including rating charges and interest)      
         
  Cash A/c Dr.   10,250  

 

To Bills Receivable A/c

 

 

10,250

 

(Amount received)

 

 

 

 

 

 

 

 

 

Answer:

Books of Bimal

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jan.01

Amar

Dr.

 

1,000

 

 

To Sales A/c

 

 

1,000

 

(Goods were Sold to Amar)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To Amar

 

 

1,000

 

(Amar’s acceptance was received)

 

 

 

 

 

 

 

 

Feb.04

Amar

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Amar’s acceptance was dishonoured)

 

 

 

 

 

 

 

 

Feb.04

Cash A/c

Dr.

 

250

 

 

To Amar

 

 

250

 

(Cash received from Amar)

 

 

 

 

 

 

 

 

Feb.04

Amar

Dr.

 

10

 

 

To Interest A/c

 

 

10

 

(Interest due from Amar)

 

 

 

 

 

 

 

 

 

Feb.04

Bills Receivable A/c

Dr.

 

760

 

 

To Amar

 

 

760

 

(Amar’s acceptance received for the balance amount including interest)

 

 

 

 

 

 

 

 

April 07

Cash A/c

Dr.

 

760

 

 

To Bills Receivable A/c

 

 

760

 

(Cash received on honouring of Amar’s acceptance)

 

 

 

 

 

 

 

 

 

 

Books of Amar

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

1,000

 

 

To Bimal

 

 

1,000

 

(Goods were bought from Amar)

 

 

 

 

 

 

 

 

Jan.01

Bimal

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bills drawn by Amar was accepted)

 

 

 

 

 

 

 

 

Feb.04

Bills Payable A/c

Dr.

 

1,000

 

 

To Bimal

 

 

1,000

 

(Bill dishonour on account of non-payment)

 

 

 

 

 

 

 

 

Feb.04

Bimal

Dr.

 

250

 

 

To Cash A/c

 

 

250

 

(Cash paid to Bimal)

 

 

 

 

 

 

 

 

Feb.04

Interest A/c

Dr.

 

10

 

 

To Bimal

 

 

10

 

(Interest due to Bimal on account of bill dishonour)

 

 

 

 

 

 

 

 

Feb.04

Bimal

Dr.

 

760

 

 

To Bills Payable A/c

 

 

760

 

(New bill drawn by Bimal on the balance accepted amount including interest)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

760

 

 

To Cash A/c

 

 

760

 

(Cash paid for the discharging the bill)

 

 

 

 

 

 

 

 

 

Page No 16.49:

Question 38:

Books of Bimal

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jan.01

Amar

Dr.

 

1,000

 

 

To Sales A/c

 

 

1,000

 

(Goods were Sold to Amar)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To Amar

 

 

1,000

 

(Amar’s acceptance was received)

 

 

 

 

 

 

 

 

Feb.04

Amar

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(Amar’s acceptance was dishonoured)

 

 

 

 

 

 

 

 

Feb.04

Cash A/c

Dr.

 

250

 

 

To Amar

 

 

250

 

(Cash received from Amar)

 

 

 

 

 

 

 

 

Feb.04

Amar

Dr.

 

10

 

 

To Interest A/c

 

 

10

 

(Interest due from Amar)

 

 

 

 

 

 

 

 

 

Feb.04

Bills Receivable A/c

Dr.

 

760

 

 

To Amar

 

 

760

 

(Amar’s acceptance received for the balance amount including interest)

 

 

 

 

 

 

 

 

April 07

Cash A/c

Dr.

 

760

 

 

To Bills Receivable A/c

 

 

760

 

(Cash received on honouring of Amar’s acceptance)

 

 

 

 

 

 

 

 

 

 

Books of Amar

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jan.01

Purchases A/c

Dr.

 

1,000

 

 

To Bimal

 

 

1,000

 

(Goods were bought from Amar)

 

 

 

 

 

 

 

 

Jan.01

Bimal

Dr.

 

1,000

 

 

To Bills Payable A/c

 

 

1,000

 

(Bills drawn by Amar was accepted)

 

 

 

 

 

 

 

 

Feb.04

Bills Payable A/c

Dr.

 

1,000

 

 

To Bimal

 

 

1,000

 

(Bill dishonour on account of non-payment)

 

 

 

 

 

 

 

 

Feb.04

Bimal

Dr.

 

250

 

 

To Cash A/c

 

 

250

 

(Cash paid to Bimal)

 

 

 

 

 

 

 

 

Feb.04

Interest A/c

Dr.

 

10

 

 

To Bimal

 

 

10

 

(Interest due to Bimal on account of bill dishonour)

 

 

 

 

 

 

 

 

Feb.04

Bimal

Dr.

 

760

 

 

To Bills Payable A/c

 

 

760

 

(New bill drawn by Bimal on the balance accepted amount including interest)

 

 

 

 

 

 

 

 

April 04

Bills Payable A/c

Dr.

 

760

 

 

To Cash A/c

 

 

760

 

(Cash paid for the discharging the bill)

 

 

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Jun.15

B

Dr.

 

2,000

 

 

To Bills Receivable A/c

 

 

2,000

 

(B’s acceptance dishonoured)

 

 

 

 

 

 

 

 

Jun.30

Cash A/c

Dr.

 

800

 

 

To B

 

 

800

 

(Cash received from B)

 

 

 

 

 

 

 

 

Jun.30

B

Dr.

 

15

 

 

To Interest A/c

 

 

15

 

(Interest due from B)

 

 

 

 

 

 

 

 

Jun.30

Bills Receivable A/c

Dr.

 

1,215

 

 

To B

 

 

1,215

 

(Now bill accepted by B together with Interest)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Jun.15

Bills Payable A/c

Dr.

 

2,000

 

 

To A

 

 

2,000

 

(Bill drawn by A was dishonoured)

 

 

 

 

 

 

 

 

Jun. 30

A

Dr.

 

800

 

 

To Cash A/c

 

 

800

 

(Cash paid to A)

 

 

 

 

 

 

 

 

Jun. 30

Interest A/c

Dr.

 

15

 

 

To A

 

 

15

 

(Interest due to A)

 

 

 

 

 

 

 

 

Jun.30

A

Dr.

 

1,215

 

 

To Bills Payable A/c

 

 

1,215

 

(Bill drawn by A for balance amount with interest was accepted)

 

 

 

 

 

 

 

 

 

Page No 16.49:

Question 39:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Jun.15

B

Dr.

 

2,000

 

 

To Bills Receivable A/c

 

 

2,000

 

(B’s acceptance dishonoured)

 

 

 

 

 

 

 

 

Jun.30

Cash A/c

Dr.

 

800

 

 

To B

 

 

800

 

(Cash received from B)

 

 

 

 

 

 

 

 

Jun.30

B

Dr.

 

15

 

 

To Interest A/c

 

 

15

 

(Interest due from B)

 

 

 

 

 

 

 

 

Jun.30

Bills Receivable A/c

Dr.

 

1,215

 

 

To B

 

 

1,215

 

(Now bill accepted by B together with Interest)

 

 

 

 

 

 

 

 

 

 

Books of B

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Jun.15

Bills Payable A/c

Dr.

 

2,000

 

 

To A

 

 

2,000

 

(Bill drawn by A was dishonoured)

 

 

 

 

 

 

 

 

Jun. 30

A

Dr.

 

800

 

 

To Cash A/c

 

 

800

 

(Cash paid to A)

 

 

 

 

 

 

 

 

Jun. 30

Interest A/c

Dr.

 

15

 

 

To A

 

 

15

 

(Interest due to A)

 

 

 

 

 

 

 

 

Jun.30

A

Dr.

 

1,215

 

 

To Bills Payable A/c

 

 

1,215

 

(Bill drawn by A for balance amount with interest was accepted)

 

 

 

 

 

 

 

 

 

Answer:

(a)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance was cancelled)

 

 

 

 

 

 

 

 

 

B

Dr.

 

15

 

 

To Interest A/c

 

 

15

 

(Interest due from B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,015

 

 

To B

 

 

1,015

 

(New bill was accepted by B including interest)

 

 

 

 

 

 

 

 

 

Working Note:

(b)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Payable A/c

Dr.

 

5,000

 

 

To C. Chandra

 

 

5,000

 

(Bill Payable was cancelled)

 

 

 

 

 

 

 

 

 

Interest A/c

Dr.

 

50

 

 

To C. Chandra

 

 

50

 

(Interest at 6% p.a. for 2 month due to C. Chandra)

 

 

 

 

 

 

 

 

 

C. Chandra

Dr.

 

5,050

 

 

To Bills Payable A/c

 

 

5,050

 

(New bill drawn by C. Chandra was accepted)

 

 

 

 

 

 

 

 

 

Working Note:

(c)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

3,000

 

 

To Bills Receivable A/c

 

 

3,000

 

(B got cancelled his acceptance)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(Cash received from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

100

 

 

To Interest A/c

 

 

100

 

(Interest due from B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

2,100

 

 

To B

 

 

2,100

 

(New bill accepted by B for balance amount including interest)

 

 

 

 

 

 

 

 

 

Page No 16.49:

Question 40:

(a)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance was cancelled)

 

 

 

 

 

 

 

 

 

B

Dr.

 

15

 

 

To Interest A/c

 

 

15

 

(Interest due from B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,015

 

 

To B

 

 

1,015

 

(New bill was accepted by B including interest)

 

 

 

 

 

 

 

 

 

Working Note:

(b)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bills Payable A/c

Dr.

 

5,000

 

 

To C. Chandra

 

 

5,000

 

(Bill Payable was cancelled)

 

 

 

 

 

 

 

 

 

Interest A/c

Dr.

 

50

 

 

To C. Chandra

 

 

50

 

(Interest at 6% p.a. for 2 month due to C. Chandra)

 

 

 

 

 

 

 

 

 

C. Chandra

Dr.

 

5,050

 

 

To Bills Payable A/c

 

 

5,050

 

(New bill drawn by C. Chandra was accepted)

 

 

 

 

 

 

 

 

 

Working Note:

(c)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

B

Dr.

 

3,000

 

 

To Bills Receivable A/c

 

 

3,000

 

(B got cancelled his acceptance)

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(Cash received from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

100

 

 

To Interest A/c

 

 

100

 

(Interest due from B)

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

2,100

 

 

To B

 

 

2,100

 

(New bill accepted by B for balance amount including interest)

 

 

 

 

 

 

 

 

 

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

500

 

 

Noting Charges A/c

Dr.

 

10

 

 

 To A’s A/c

 

 

510

 

(Bills payable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

(b)

A’s A/c

Dr.

 

1,010

 

 

To B’s A/c

 

 

1,010

 

(Endorsed bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

B’s A/c

Dr.

 

1,010

 

 

 To Cash A/c

 

 

1,010

 

(Cash paid to B)

 

 

 

 

 

 

 

 

 

Page No 16.49:

Question 41:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

500

 

 

Noting Charges A/c

Dr.

 

10

 

 

 To A’s A/c

 

 

510

 

(Bills payable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

(b)

A’s A/c

Dr.

 

1,010

 

 

To B’s A/c

 

 

1,010

 

(Endorsed bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

B’s A/c

Dr.

 

1,010

 

 

 To Cash A/c

 

 

1,010

 

(Cash paid to B)

 

 

 

 

 

 

 

 

 

Answer:

Journal

In the Books of Kapadia

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Dalpat’s A/c

Dr.

 

1,000

 

 

  To Bills Receivable A/c

 

 

 

1,000

 

(Original bills receivable was cancelled)

 

 

 

 

 

 

 

 

 

 

 

Dalpat’s A/c

Dr.

 

20

 

 

  To Interest A/c

 

 

 

20

 

(Interest due on the amount of the bill)

 

 

 

 

           

 

Cash A/c

Dr.

 

20

 

  To Dalpat's A/c       20
  (Cash received from Dalpat)        
           

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To Dalpat’s A/c

 

 

 

1,000

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Swamy’s A/c

Dr.

 

810

 

 

  To Ghosh’s A/c

 

 

 

810

 

(Endorsed bills receivable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

300

 

 

  To Swamy’s A/c

 

 

 

300

 

(Part payment is received in cash)

 

 

 

 

 

 

 

 

 

 

 

Swamy’s A/c

Dr.

 

7.65

 

 

  To Interest A/c

 

 

 

7.65

 

(Interest due on remaining amount of Rs 510)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

517.65

 

 

  To Swamy’s A/c

 

 

 

517.65

 

(Acceptance for the new bill received)

 

 

 

 

 

 

 

 

 

 

 

Ghosh’s A/c

Dr.

 

810

 

 

  To Bank A/c

 

 

 

810

 

( Payment made to Ghosh)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Page No 16.49:

Question 42:

Journal

In the Books of Kapadia

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Dalpat’s A/c

Dr.

 

1,000

 

 

  To Bills Receivable A/c

 

 

 

1,000

 

(Original bills receivable was cancelled)

 

 

 

 

 

 

 

 

 

 

 

Dalpat’s A/c

Dr.

 

20

 

 

  To Interest A/c

 

 

 

20

 

(Interest due on the amount of the bill)

 

 

 

 

           

 

Cash A/c

Dr.

 

20

 

  To Dalpat's A/c       20
  (Cash received from Dalpat)        
           

 

Bills Receivable A/c

Dr.

 

1,000

 

 

To Dalpat’s A/c

 

 

 

1,000

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Swamy’s A/c

Dr.

 

810

 

 

  To Ghosh’s A/c

 

 

 

810

 

(Endorsed bills receivable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

300

 

 

  To Swamy’s A/c

 

 

 

300

 

(Part payment is received in cash)

 

 

 

 

 

 

 

 

 

 

 

Swamy’s A/c

Dr.

 

7.65

 

 

  To Interest A/c

 

 

 

7.65

 

(Interest due on remaining amount of Rs 510)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

517.65

 

 

  To Swamy’s A/c

 

 

 

517.65

 

(Acceptance for the new bill received)

 

 

 

 

 

 

 

 

 

 

 

Ghosh’s A/c

Dr.

 

810

 

 

  To Bank A/c

 

 

 

810

 

( Payment made to Ghosh)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Answer:

Journal

   In the Books of Sharma

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

2,000

 

 

To Banerji’s A/c

 

 

 

2,000

 

(Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Interest A/c (WN1)

Dr.

 

15

 

 

To Banerji’s A/c

 

 

 

15

 

(Interest due on the remaining amount of Rs 1,000)

 

 

 

 

 

 

 

 

 

 

 

Banerji’s A/c

Dr.

 

1,015

 

 

To Cash A/c

 

 

 

1,015

 

(Part payment is made to Banerji)

 

 

 

 

 

 

 

 

 

 

 

Banerji’s A/c

Dr.

 

1,000

 

 

To Bills Payable A/c (New)

 

 

 

1,000

 

(Acceptance is given for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Bills Payable A/c

Dr.

 

1,500

 

 

Noting Charges A/c

Dr.

 

10

 

 

To Birdi’s A/c

 

 

 

1,510

 

(Bills payable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

 

Birdi’s A/c

Dr.

 

1,510

 

 

To Bank A/c

 

 

 

1,510

 

(Cash paid to Birdi)

 

 

 

 

 

 

 

 

 

 

(c)

Vohra’s A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

 

1,000

 

(Vohra’s acceptance was cancelled)

 

 

 

 

 

 

 

 

 

 

 

Vohra’s A/c (WN2)

Dr.

 

22.5

 

 

To Interest A/c

 

 

 

22.5

 

(Interest due on bill)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

1,022.5

 

 

To Vohra’s A/c

 

 

 

1,022.5

 

( Acceptance for the new bill is received)

 

 

 

 

 

 

 

 

 

Working notes:

WN1: Calculation of Interest

WN2: Calculation of Interest

Page No 16.49:

Question 43:

Journal

   In the Books of Sharma

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

2,000

 

 

To Banerji’s A/c

 

 

 

2,000

 

(Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Interest A/c (WN1)

Dr.

 

15

 

 

To Banerji’s A/c

 

 

 

15

 

(Interest due on the remaining amount of Rs 1,000)

 

 

 

 

 

 

 

 

 

 

 

Banerji’s A/c

Dr.

 

1,015

 

 

To Cash A/c

 

 

 

1,015

 

(Part payment is made to Banerji)

 

 

 

 

 

 

 

 

 

 

 

Banerji’s A/c

Dr.

 

1,000

 

 

To Bills Payable A/c (New)

 

 

 

1,000

 

(Acceptance is given for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Bills Payable A/c

Dr.

 

1,500

 

 

Noting Charges A/c

Dr.

 

10

 

 

To Birdi’s A/c

 

 

 

1,510

 

(Bills payable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

 

 

Birdi’s A/c

Dr.

 

1,510

 

 

To Bank A/c

 

 

 

1,510

 

(Cash paid to Birdi)

 

 

 

 

 

 

 

 

 

 

(c)

Vohra’s A/c

Dr.

 

1,000

 

 

To Bills Receivable A/c

 

 

 

1,000

 

(Vohra’s acceptance was cancelled)

 

 

 

 

 

 

 

 

 

 

 

Vohra’s A/c (WN2)

Dr.

 

22.5

 

 

To Interest A/c

 

 

 

22.5

 

(Interest due on bill)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

1,022.5

 

 

To Vohra’s A/c

 

 

 

1,022.5

 

( Acceptance for the new bill is received)

 

 

 

 

 

 

 

 

 

Working notes:

WN1: Calculation of Interest

WN2: Calculation of Interest

Answer:

Journal

In the Books of Mehra

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

1,500

 

 

To Chopra’s A/c

 

 

 

1,500

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Interest A/c

Dr.

 

22.5

 

 

To Chopra’s A/c

 

 

 

22.5

 

(Interest due on the bill amount)

 

 

 

 

 

 

 

 

 

 

 

Chopra’s A/c

Dr.

 

1,522.5

 

 

To Bills Payable A/c (New)

 

 

 

1,522.5

 

(Acceptance is given for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Bills Payable A/c

Dr.

 

2,000

 

 

To Bills Receivable A/c

 

 

 

2,000

 

( Bills receivable given in payment of acceptance)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest



Page No 16.50:

Question 44:

Journal

In the Books of Mehra

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

1,500

 

 

To Chopra’s A/c

 

 

 

1,500

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Interest A/c

Dr.

 

22.5

 

 

To Chopra’s A/c

 

 

 

22.5

 

(Interest due on the bill amount)

 

 

 

 

 

 

 

 

 

 

 

Chopra’s A/c

Dr.

 

1,522.5

 

 

To Bills Payable A/c (New)

 

 

 

1,522.5

 

(Acceptance is given for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Bills Payable A/c

Dr.

 

2,000

 

 

To Bills Receivable A/c

 

 

 

2,000

 

( Bills receivable given in payment of acceptance)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Answer:

Journal

In the Books of Mehta  

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

2,500

 

 

To Cash A/c

 

 

 

2,450

 

To Rebate A/c

 

 

 

50

 

(Bills payable retired under a rebate of Rs 50)

 

 

 

 

 

 

 

 

 

 

(b)

Bills Receivable A/c

Dr.

 

1,200

 

 

To Verma’s A/c

 

 

 

1,200

 

( Bills receivable cancelled)

 

 

 

 

 

 

 

 

 

 

 

Verma’s A/c

Dr

 

27

 

 

To Interest A/c

 

 

 

27

 

(Interest due)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,227

 

 

To Verma’s A/c

 

 

 

1,227

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Page No 16.50:

Question 45:

Journal

In the Books of Mehta  

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bills Payable A/c

Dr.

 

2,500

 

 

To Cash A/c

 

 

 

2,450

 

To Rebate A/c

 

 

 

50

 

(Bills payable retired under a rebate of Rs 50)

 

 

 

 

 

 

 

 

 

 

(b)

Bills Receivable A/c

Dr.

 

1,200

 

 

To Verma’s A/c

 

 

 

1,200

 

( Bills receivable cancelled)

 

 

 

 

 

 

 

 

 

 

 

Verma’s A/c

Dr

 

27

 

 

To Interest A/c

 

 

 

27

 

(Interest due)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c

Dr.

 

1,227

 

 

To Verma’s A/c

 

 

 

1,227

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Ram’s A/c

Dr.

 

20,000

 

 

To Bills Receivable A/c

 

 

 

20,000

 

(Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Ram’s A/c

Dr.

 

250

 

 

To Interest A/c

 

 

 

250

 

(Interest amount is due on the bill)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

20,250

 

 

To Ram’s A/c

 

 

 

20,250

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Shyam’s A/c

Dr.

 

4,510

 

 

To Bills Receivable A/c

 

 

 

4,500

 

To Cash

 

 

 

10

 

(Bills receivable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Page No 16.50:

Question 46:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Ram’s A/c

Dr.

 

20,000

 

 

To Bills Receivable A/c

 

 

 

20,000

 

(Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Ram’s A/c

Dr.

 

250

 

 

To Interest A/c

 

 

 

250

 

(Interest amount is due on the bill)

 

 

 

 

 

 

 

 

 

 

 

Bills Receivable A/c (New)

Dr.

 

20,250

 

 

To Ram’s A/c

 

 

 

20,250

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

(b)

Shyam’s A/c

Dr.

 

4,510

 

 

To Bills Receivable A/c

 

 

 

4,500

 

To Cash

 

 

 

10

 

(Bills receivable dishonoured and noting charges paid)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Interest

Answer:

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

April 15

Bills Receivable A/c (1)

Dr.

 

7,000

 

 

Bills Receivable A/c (2)

Dr.

 

8,000

 

 

Bills Receivable A/c (3)

Dr.

 

9,000

 

 

To B’s A/c

 

 

 

24,000

 

(Acceptance received from B)

 

 

 

 

 

 

 

 

 

 

April 20

C’s A/c

Dr.

 

7,100

 

 

To Bills Receivable A/c (1)

 

 

 

7,000

 

To Discount Received A/c

 

 

 

100

 

(Bills receivable endorsed in favour of C)

 

 

 

 

 

 

 

 

 

 

April 22

Bank A/c

Dr.

 

7,208

 

 

Discounting Charges A/c

Dr.

 

792

 

 

To Bills Receivable A/c (2)

 

 

 

8,000

 

(Bills receivable discounted with bank)

 

 

 

 

 

 

 

 

 

 

June 04

B’s A/c

Dr.

 

8,100

 

 

To Bank A/c

 

 

 

8,100

 

(Bills receivable discounted with the bank gets dishonoured)

 

 

 

 

 

 

 

 

 

 

June 04

B’s A/c

Dr.

 

150

 

 

To Interest A/c

 

 

 

150

 

(Interest due on the second bill receivable)

 

 

 

 

 

 

 

 

 

 

June 04

Bills Receivable A/c (4)

Dr.

 

8,250

 

 

To B’s A/c

 

 

 

8,250

 

(New Bills Receivable received)

 

 

 

 

 

 

 

 

 

 

July 04

Cash A/c

Dr.

 

9,000

 

 

To Bills Receivable A/c (3)

 

 

 

9,000

 

(Payment is received on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Sep. 07

Cash A/c

Dr.

 

8,250

 

 

To Bills Receivable A/c (4)

 

 

 

8,250

 

(Payment is received on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

April 15

A’s A/c

Dr.

 

24,000

 

 

 To Bills Payable A/c (1)

 

 

 

7,000

 

 To Bills Payable A/c (2)

 

 

 

8,000

 

 To Bills Payable A/c (3)

 

 

 

9,000

 

(acceptance given)

 

 

 

 

 

 

 

 

 

 

May 04

Bills Payable A/c (1)

Dr.

 

7,000

 

 

To Cash A/c

 

 

 

7,000

 

(Payment is made on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

June 04

Bills Payable A/c (2)

Dr.

 

8,000

 

 

Noting Charges A/c

Dr.

 

100

 

 

To A’s A/c

 

 

 

8,100

 

(Bills payable dishonoured and noting charges were paid)

 

 

 

 

 

 

 

 

 

 

June 04

Interest A/c

Dr.

 

150

 

 

To A’s A/c

 

 

 

150

 

(Interest due)

 

 

 

 

 

 

 

 

 

 

June 04

A’s A/c

Dr.

 

8,250

 

 

To Bills Payable A/c (4)

 

 

 

8,250

 

(Acceptance is given for the fourth bill)

 

 

 

 

 

 

 

 

 

 

July 04

Bills Payable A/c (3)

Dr.

 

9,000

 

 

To Cash A/c

 

 

 

9,000

 

(Cash paid on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Sep.07

Bills Payable A/c (4)

Dr.

 

8,250

 

 

To Cash A/c

 

 

 

8,250

 

( Cash paid on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of C

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

April 20

Bills Receivable A/c

Dr.

 

7,000

 

 

Discount A/c

Dr.

 

100

 

 

To A’s A/c

 

 

 

7,100

 

(Bills receivable received)

 

 

 

 

 

 

 

 

 

 

May 04

Cash A/c

Dr.

 

7,000

 

 

To Bills Receivable A/c

 

 

 

7,000

 

(Cash received on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Page No 16.50:

Question 47:

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

April 15

Bills Receivable A/c (1)

Dr.

 

7,000

 

 

Bills Receivable A/c (2)

Dr.

 

8,000

 

 

Bills Receivable A/c (3)

Dr.

 

9,000

 

 

To B’s A/c

 

 

 

24,000

 

(Acceptance received from B)

 

 

 

 

 

 

 

 

 

 

April 20

C’s A/c

Dr.

 

7,100

 

 

To Bills Receivable A/c (1)

 

 

 

7,000

 

To Discount Received A/c

 

 

 

100

 

(Bills receivable endorsed in favour of C)

 

 

 

 

 

 

 

 

 

 

April 22

Bank A/c

Dr.

 

7,208

 

 

Discounting Charges A/c

Dr.

 

792

 

 

To Bills Receivable A/c (2)

 

 

 

8,000

 

(Bills receivable discounted with bank)

 

 

 

 

 

 

 

 

 

 

June 04

B’s A/c

Dr.

 

8,100

 

 

To Bank A/c

 

 

 

8,100

 

(Bills receivable discounted with the bank gets dishonoured)

 

 

 

 

 

 

 

 

 

 

June 04

B’s A/c

Dr.

 

150

 

 

To Interest A/c

 

 

 

150

 

(Interest due on the second bill receivable)

 

 

 

 

 

 

 

 

 

 

June 04

Bills Receivable A/c (4)

Dr.

 

8,250

 

 

To B’s A/c

 

 

 

8,250

 

(New Bills Receivable received)

 

 

 

 

 

 

 

 

 

 

July 04

Cash A/c

Dr.

 

9,000

 

 

To Bills Receivable A/c (3)

 

 

 

9,000

 

(Payment is received on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Sep. 07

Cash A/c

Dr.

 

8,250

 

 

To Bills Receivable A/c (4)

 

 

 

8,250

 

(Payment is received on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

April 15

A’s A/c

Dr.

 

24,000

 

 

 To Bills Payable A/c (1)

 

 

 

7,000

 

 To Bills Payable A/c (2)

 

 

 

8,000

 

 To Bills Payable A/c (3)

 

 

 

9,000

 

(acceptance given)

 

 

 

 

 

 

 

 

 

 

May 04

Bills Payable A/c (1)

Dr.

 

7,000

 

 

To Cash A/c

 

 

 

7,000

 

(Payment is made on the maturity of the bill)

 

 

 

 

 

 

 

 

 

 

June 04

Bills Payable A/c (2)

Dr.

 

8,000

 

 

Noting Charges A/c

Dr.

 

100

 

 

To A’s A/c

 

 

 

8,100

 

(Bills payable dishonoured and noting charges were paid)

 

 

 

 

 

 

 

 

 

 

June 04

Interest A/c

Dr.

 

150

 

 

To A’s A/c

 

 

 

150

 

(Interest due)

 

 

 

 

 

 

 

 

 

 

June 04

A’s A/c

Dr.

 

8,250

 

 

To Bills Payable A/c (4)

 

 

 

8,250

 

(Acceptance is given for the fourth bill)

 

 

 

 

 

 

 

 

 

 

July 04

Bills Payable A/c (3)

Dr.

 

9,000

 

 

To Cash A/c

 

 

 

9,000

 

(Cash paid on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Sep.07

Bills Payable A/c (4)

Dr.

 

8,250

 

 

To Cash A/c

 

 

 

8,250

 

( Cash paid on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of C

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

April 20

Bills Receivable A/c

Dr.

 

7,000

 

 

Discount A/c

Dr.

 

100

 

 

To A’s A/c

 

 

 

7,100

 

(Bills receivable received)

 

 

 

 

 

 

 

 

 

 

May 04

Cash A/c

Dr.

 

7,000

 

 

To Bills Receivable A/c

 

 

 

7,000

 

(Cash received on maturity of the bill)

 

 

 

 

 

 

 

 

 

 

Answer:

Journal

  In the Books of Ramesh

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Vinod’s A/c

Dr.

 

2,700

 

 

  To Sales A/c

 

 

 

2,700

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

Feb. 04

Bills Receivable A/c

Dr.

 

2,700

 

 

  To Vinod’s A/c

 

 

 

2,700

 

(Acceptance received)

 

 

 

 

 

 

 

 

 

 

March 04

Cash A/c

Dr.

 

2,619

 

 

Rebate A/c

Dr.

 

81

 

 

To Bills Receivable A/c

 

 

 

2,700

 

(Bills receivable encashed under rebate)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of Vinod

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Purchases A/c

Dr.

 

2,700

 

 

  To Ramesh’s A/c

 

 

 

2,700

 

(Goods were purchased on credit)

 

 

 

 

 

 

 

 

 

 

Feb. 04

Ramesh’s A/c

Dr.

 

2,700

 

 

  To Bills Payable A/c

 

 

 

2,700

 

(Acceptance given)

 

 

 

 

 

 

 

 

 

 

March 04

Bills Payable A/c

Dr.

 

2,700

 

 

  To Cash A/c

 

 

 

2,619

 

  To Rebate A/c

 

 

 

81

 

(Payment is made under rebate)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Rebate Amount

Page No 16.50:

Question 48:

Journal

  In the Books of Ramesh

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Vinod’s A/c

Dr.

 

2,700

 

 

  To Sales A/c

 

 

 

2,700

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

Feb. 04

Bills Receivable A/c

Dr.

 

2,700

 

 

  To Vinod’s A/c

 

 

 

2,700

 

(Acceptance received)

 

 

 

 

 

 

 

 

 

 

March 04

Cash A/c

Dr.

 

2,619

 

 

Rebate A/c

Dr.

 

81

 

 

To Bills Receivable A/c

 

 

 

2,700

 

(Bills receivable encashed under rebate)

 

 

 

 

 

 

 

 

 

 

Journal

In the Books of Vinod

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Purchases A/c

Dr.

 

2,700

 

 

  To Ramesh’s A/c

 

 

 

2,700

 

(Goods were purchased on credit)

 

 

 

 

 

 

 

 

 

 

Feb. 04

Ramesh’s A/c

Dr.

 

2,700

 

 

  To Bills Payable A/c

 

 

 

2,700

 

(Acceptance given)

 

 

 

 

 

 

 

 

 

 

March 04

Bills Payable A/c

Dr.

 

2,700

 

 

  To Cash A/c

 

 

 

2,619

 

  To Rebate A/c

 

 

 

81

 

(Payment is made under rebate)

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Rebate Amount

Answer:

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2015

 

 

 

 

 

March 01

A’s A/c

Dr.

 

10,000

 

 

  To Sales A/c

 

 

 

10,000

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

March 01

Bills Receivable A/c (1)

Dr.

 

6,000

 

 

Bills Receivable A/c (2)

Dr.

 

4,000

 

 

  To A’s A/c

 

 

 

10,000

 

(Acceptance received)

 

 

 

 

 

 

 

 

 

 

May 04*

Cash A/c

Dr.

 

6,000

 

 

 To Bills Receivable A/c (1)

 

 

 

6,000

 

(Bills receivable met)

 

 

 

 

 

 

 

 

 

 

July 04

A’s A/c

Dr.

 

4,000

 

 

  To Bills Receivable A/c (2)

 

 

 

4,000

 

(Bill receivable dishonoured)

 

 

 

 

           

Aug. 31

Cash A/c

Dr.

 

2,000

 

 

Bad Debts A/c

Dr.

 

2,000

 

 

  To A’s A/c

 

 

 

4,000

 

(Final payment received)

 

 

 

 

 

 

 

 

 

* As per experts advice there is a mistake in the question as the maturity date of the first bill is May 04, 2015, but in the book it is given as June 10, 2015. Moreover, the drawee (Mr. A) is becoming insolvent on June 10, 2015, thus, it leads to dishonour of the second bill on its maturity date.

 

A’s Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

March 01

Sales A/c

10,000

March 01

Bills Receivable A/c (1)

6,000

July 04

Bills Receivable A/c (2)

4,000

March 01

Bills Receivable A/c (2)

4,000

 

 

 

Aug. 31

Cash A/c

2,000

 

 

 

Aug. 31

Bad debts A/c

2,000

 

 

 

 

 

 

 

 

14,000

 

 

14,000

 

 

 

 

 

 


 

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2015

 

 

 

 

 

March 01

Purchases A/c

Dr.

 

10,000

 

 

  To B’s A/c

 

 

 

10,000

 

(Goods purchased)

 

 

 

 

 

 

 

 

 

 

March 01

B’s A/c

Dr.

 

10,000

 

 

  To Bills Payable A/c (1)

 

 

 

6,000

 

  To Bills Payable A/c (2)

 

 

 

4,000

 

(Acceptance given)

 

 

 

 

 

 

 

 

 

 

May 04

Bills Payable A/c (1)

Dr.

 

6,000

 

 

  To Cash A/c

 

 

 

6,000

 

(Bills payable met)

 

 

 

 

 

 

 

 

 

 

July 04

Bills Payable A/c (2)

Dr.

 

4,000

 

 

  To B’s A/c

 

 

 

4,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

 

 

Aug. 31

B’s A/c

Dr.

 

4,000

 

 

  To Cash A/c

 

 

 

2,000

 

  To Deficiency A/c

 

 

 

2,000

 

(Final payment made)

 

 

 

 

 

 

 

 

 

 

B’s Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

March 01

Bills Payable A/c (1)

6,000

March 01

Purchases A/c

10,000

March 01

Bills Payable A/c (2)

4,000

July 04

Bills Payable A/c (2)

4,000

Aug. 31

Cash A/c

2,000

 

 

 

Aug. 31

Deficiency A/c

2,000

 

 

 

 

 

14,000

 

 

14,000

 

 

 

 

 

 

 

Page No 16.50:

Question 49:

Journal

In the Books of B

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2015

 

 

 

 

 

March 01

A’s A/c

Dr.

 

10,000

 

 

  To Sales A/c

 

 

 

10,000

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

March 01

Bills Receivable A/c (1)

Dr.

 

6,000

 

 

Bills Receivable A/c (2)

Dr.

 

4,000

 

 

  To A’s A/c

 

 

 

10,000

 

(Acceptance received)

 

 

 

 

 

 

 

 

 

 

May 04*

Cash A/c

Dr.

 

6,000

 

 

 To Bills Receivable A/c (1)

 

 

 

6,000

 

(Bills receivable met)

 

 

 

 

 

 

 

 

 

 

July 04

A’s A/c

Dr.

 

4,000

 

 

  To Bills Receivable A/c (2)

 

 

 

4,000

 

(Bill receivable dishonoured)

 

 

 

 

           

Aug. 31

Cash A/c

Dr.

 

2,000

 

 

Bad Debts A/c

Dr.

 

2,000

 

 

  To A’s A/c

 

 

 

4,000

 

(Final payment received)

 

 

 

 

 

 

 

 

 

* As per experts advice there is a mistake in the question as the maturity date of the first bill is May 04, 2015, but in the book it is given as June 10, 2015. Moreover, the drawee (Mr. A) is becoming insolvent on June 10, 2015, thus, it leads to dishonour of the second bill on its maturity date.

 

A’s Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

March 01

Sales A/c

10,000

March 01

Bills Receivable A/c (1)

6,000

July 04

Bills Receivable A/c (2)

4,000

March 01

Bills Receivable A/c (2)

4,000

 

 

 

Aug. 31

Cash A/c

2,000

 

 

 

Aug. 31

Bad debts A/c

2,000

 

 

 

 

 

 

 

 

14,000

 

 

14,000

 

 

 

 

 

 


 

Journal

In the Books of A

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2015

 

 

 

 

 

March 01

Purchases A/c

Dr.

 

10,000

 

 

  To B’s A/c

 

 

 

10,000

 

(Goods purchased)

 

 

 

 

 

 

 

 

 

 

March 01

B’s A/c

Dr.

 

10,000

 

 

  To Bills Payable A/c (1)

 

 

 

6,000

 

  To Bills Payable A/c (2)

 

 

 

4,000

 

(Acceptance given)

 

 

 

 

 

 

 

 

 

 

May 04

Bills Payable A/c (1)

Dr.

 

6,000

 

 

  To Cash A/c

 

 

 

6,000

 

(Bills payable met)

 

 

 

 

 

 

 

 

 

 

July 04

Bills Payable A/c (2)

Dr.

 

4,000

 

 

  To B’s A/c

 

 

 

4,000

 

(Bills payable dishonoured)

 

 

 

 

 

 

 

 

 

 

Aug. 31

B’s A/c

Dr.

 

4,000

 

 

  To Cash A/c

 

 

 

2,000

 

  To Deficiency A/c

 

 

 

2,000

 

(Final payment made)

 

 

 

 

 

 

 

 

 

 

B’s Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

March 01

Bills Payable A/c (1)

6,000

March 01

Purchases A/c

10,000

March 01

Bills Payable A/c (2)

4,000

July 04

Bills Payable A/c (2)

4,000

Aug. 31

Cash A/c

2,000

 

 

 

Aug. 31

Deficiency A/c

2,000

 

 

 

 

 

14,000

 

 

14,000

 

 

 

 

 

 

 

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jul.01

B

Dr.

 

12,000

 

 

To Sales A/c

 

 

12,000

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

Jul.01

Bills Receivable A/c

Dr.

 

12,000

 

 

To B

 

 

12,000

 

(B’s accepted a 3 months bill)

 

 

 

 

 

 

 

 

Aug.04

Bank A/c

Dr.

 

11,900

 

 

Discount Charges A/c

Dr.

 

100

 

 

To Bills Receivable A/c

 

 

12,000

 

(B’s acceptance discounted with bank 2 months before its due date)

 

 

 

 

Working Note:

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

12,010

 

 

To Bank A/c

 

 

12,010

 

(B’s acceptance become dishonour and bank paid Rs 10 as noting charges)

 

 

 

 

 

 

 

 

Oct.04

Cash A/c

Dr.

 

3,000

 

 

To B

 

 

3,000

 

(Cash received from B)

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

135

 

 

To Interest A/c

 

 

135

 

(Interest due from on the balance amount)

 

 

 

 

Working Note:

 

 

 

 

 

 

 

 

Oct.04

Bills Receivable A/c

Dr.

 

9,145

 

 

To B

 

 

9,145

 

(B accepted a new bill for the balance amount including noting charges and interest)

 

 

 

 

 

 

 

 

2015

 

 

 

 

Jan.07

B

Dr.

 

9,145

 

 

To Bills Receivable A/c

 

 

9,145

 

(Bill dishonour on account of B’s insolvency)

 

 

 

 

 

 

 

 

 

Cash A/c (WN)

Dr.

 

6,859

 

 

Bad debts A/c

Dr.

 

2,286

 

 

To B

 

 

9,145

 

(Received 75 paise in a rupee from B and the balance proved bad)

 

 

 

 

 

 

 

 

Working Note:

Page No 16.50:

Question 50:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jul.01

B

Dr.

 

12,000

 

 

To Sales A/c

 

 

12,000

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

Jul.01

Bills Receivable A/c

Dr.

 

12,000

 

 

To B

 

 

12,000

 

(B’s accepted a 3 months bill)

 

 

 

 

 

 

 

 

Aug.04

Bank A/c

Dr.

 

11,900

 

 

Discount Charges A/c

Dr.

 

100

 

 

To Bills Receivable A/c

 

 

12,000

 

(B’s acceptance discounted with bank 2 months before its due date)

 

 

 

 

Working Note:

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

12,010

 

 

To Bank A/c

 

 

12,010

 

(B’s acceptance become dishonour and bank paid Rs 10 as noting charges)

 

 

 

 

 

 

 

 

Oct.04

Cash A/c

Dr.

 

3,000

 

 

To B

 

 

3,000

 

(Cash received from B)

 

 

 

 

 

 

 

 

Oct.04

B

Dr.

 

135

 

 

To Interest A/c

 

 

135

 

(Interest due from on the balance amount)

 

 

 

 

Working Note:

 

 

 

 

 

 

 

 

Oct.04

Bills Receivable A/c

Dr.

 

9,145

 

 

To B

 

 

9,145

 

(B accepted a new bill for the balance amount including noting charges and interest)

 

 

 

 

 

 

 

 

2015

 

 

 

 

Jan.07

B

Dr.

 

9,145

 

 

To Bills Receivable A/c

 

 

9,145

 

(Bill dishonour on account of B’s insolvency)

 

 

 

 

 

 

 

 

 

Cash A/c (WN)

Dr.

 

6,859

 

 

Bad debts A/c

Dr.

 

2,286

 

 

To B

 

 

9,145

 

(Received 75 paise in a rupee from B and the balance proved bad)

 

 

 

 

 

 

 

 

Working Note:

Answer:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jan.01

B

Dr.

 

1,000

 

 

To Sales A/c

 

 

1,000

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B accepted the Bill)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

985

 

 

Discount Charges A/c

Dr.

 

15

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

Apr.04

B

Dr.

 

1,010

 

 

To Bank

 

 

1,010

 

(B’s acceptance became dishonour and bank paid Rs 10 as noting charges)

 

 

 

 

 

 

 

 

Apr.10

B

Dr.

 

15

 

 

To Interest A/c

 

 

15

 

(Interest due from B)

 

 

 

 

 

 

 

 

Apr.10

Bill Receivable A/c

Dr.

 

1,025

 

 

To B

 

 

1,025

 

(B accepted a new 3 months bill for the balance amount including interest and noting charges)

 

 

 

 

 

 

 

 

Jul.01

B

Dr.

 

1,025

 

 

To Bill Receivable A/c

 

 

1,025

 

(Bill dishonour on account of B’s insolvency)

 

 

 

 

 

 

 

 

Jul.01

Cash A/c

Dr.

 

256

 

 

Bad Debts A/c

 

769

 

 

To B

 

 

1,025

 

(25% of the amount due from was received and rest amount proved bad)

 

 

 

Working Note:

B’s Account

Dr.

Cr.

Date

Particulars

Amount

Rs

Date

Particulars

Amount

Rs

2015

 

 

2015

 

 

Jan.01

Sales A/c

1,000

Jan.01

Bills Receivable A/c

1,000

Apr.04

Bank A/c

1,010

Apr.10

Bills Receivable A/c

1,025

Apr.10

Interest A/c

15

Jul.01

Cash A/c

256

Jul.01

Bills Receivable A/c

1,025

 

Bad Debts A/c

769

 

 

3,050

 

 

3,050

 

 

 

 

 

 

Page No 16.50:

Question 51:

Books of A

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2015

 

 

 

 

Jan.01

B

Dr.

 

1,000

 

 

To Sales A/c

 

 

1,000

 

(Goods were sold to B)

 

 

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

1,000

 

 

To B

 

 

1,000

 

(B accepted the Bill)

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

985

 

 

Discount Charges A/c

Dr.

 

15

 

 

To Bills Receivable A/c

 

 

1,000

 

(B’s acceptance was discounted with bank)

 

 

 

 

 

 

 

 

Apr.04

B

Dr.

 

1,010

 

 

To Bank

 

 

1,010

 

(B’s acceptance became dishonour and bank paid Rs 10 as noting charges)

 

 

 

 

 

 

 

 

Apr.10

B

Dr.

 

15

 

 

To Interest A/c

 

 

15

 

(Interest due from B)

 

 

 

 

 

 

 

 

Apr.10

Bill Receivable A/c

Dr.

 

1,025

 

 

To B

 

 

1,025

 

(B accepted a new 3 months bill for the balance amount including interest and noting charges)

 

 

 

 

 

 

 

 

Jul.01

B

Dr.

 

1,025

 

 

To Bill Receivable A/c

 

 

1,025

 

(Bill dishonour on account of B’s insolvency)

 

 

 

 

 

 

 

 

Jul.01

Cash A/c

Dr.

 

256

 

 

Bad Debts A/c

 

769

 

 

To B

 

 

1,025

 

(25% of the amount due from was received and rest amount proved bad)

 

 

 

Working Note:

B’s Account

Dr.

Cr.

Date

Particulars

Amount

Rs

Date

Particulars

Amount

Rs

2015

 

 

2015

 

 

Jan.01

Sales A/c

1,000

Jan.01

Bills Receivable A/c

1,000

Apr.04

Bank A/c

1,010

Apr.10

Bills Receivable A/c

1,025

Apr.10

Interest A/c

15

Jul.01

Cash A/c

256

Jul.01

Bills Receivable A/c

1,025

 

Bad Debts A/c

769

 

 

3,050

 

 

3,050

 

 

 

 

 

 

Answer:

Journal

In the Books of Amar

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2016

 

 

 

 

 

Jan. 01

Baren’s A/c

Dr.

 

4,000

 

 

  To Sales A/c

 

 

 

4,000

 

(Goods were sold on credit)

 

 

 

 

 

 

 

 

 

 

Jan. 01

Bills Receivable A/c

Dr.

 

4,000

 

 

  To Baren’s A/c

 

 

 

4,000

 

(Acceptance received)

 

 

 

 

 

 

Dr.

 

3,900

 

Jan. 04

Bank A/c

Dr.

 

100

 

 

Discounting Charges A/c

 

 

 

4,000

 

  To Bills Receivable A/c

 

 

 

 

 

(Bills receivable discounted with bank)

 

 

 

 

 

 

 

 

 

 

April 04

Baren’s A/c

Dr.

 

4,025

 

 

  To Bank A/c

 

 

 

4,025

 

(Bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

April 04

Cash A/c

Dr.

 

1,025

 

 

  To Baren’s A/c

 

 

 

1,025

 

(Cash received)

 

 

 

 

 

 

 

 

 

 

April 04

Baren’s A/c

Dr.

 

75

 

 

  To Interest A/c

 

 

 

75

 

(Interest due)

 

 

 

 

 

 

 

 

 

 

April 04

Bills Receivable A/c (New)

Dr.

 

3,075

 

 

  To Baren’s A/c

 

 

 

3,075

 

(Acceptance is received for the new bill)

 

 

 

 

 

 

 

 

 

 

July 07

Baren’s A/c

Dr.

 

3,075

 

 

  To Bills receivable A/c (New)

 

 

 

3,075

 

(New bills receivable dishonoured)

 

 

 

 

 

 

 

 

 

 

July 07

Cash A/c

Dr.

 

1,537.50

 

 

Bad debts A/c

Dr,

 

1,537.50

 

 

  To Baren’s A/c

 

 

 

3,075

 

( Final cash received)

 

 

 

 

 

 

 

 

 

 

Baren’s Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2016

 

 

2016

 

 

Jan. 01

Sales A/c

4,000

Jan. 01

Bills Receivable A/c

4,000

April 04

Bank A/c

4,025

April 04

Cash A/c

1,025

April 04

Interest A/c

75

April 04

Bills Receivable A/c (New)

3,075

July 07

Bills Receivable A/c

3,075

July 07

Cash A/c

1,537.5

 

 

 

July 07

Bad debts A/c

1,537.5

 

 

11,175

 

 

11,175

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Discounting Charges

WN2: Calculation of Interest

WN3: Calculation of Amount of Bad debts



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