Book Keeping Accountancy Solutions Solutions for Class 12 Commerce Accountancy Chapter 9 Bill Of Exchange (Trade Bill) are provided here with simple step-by-step explanations. These solutions for Bill Of Exchange (Trade Bill) are extremely popular among class 12 Commerce students for Accountancy Bill Of Exchange (Trade Bill) Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Book Keeping Accountancy Solutions Book of class 12 Commerce Accountancy Chapter 9 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Book Keeping Accountancy Solutions Solutions. All Book Keeping Accountancy Solutions Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 316:
Question 1.A1:
Answer the following question in one sentence only.
What is bill of exchange?
Answer:
A bill of exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
Page No 316:
Question 1.A2:
Answer the following question in one sentence only.
Who is Drawer?
Answer:
A person who writes or draws up a bill is known as drawer. He is the seller or the creditor entitled to receive money from someone. The bill of exchange is signed by the drawer of the bill.
Page No 316:
Question 1.A3:
Answer the following question in one sentence only.
Who is Drawee?
Answer:
The person on whom a bill is drawn is known as drawee. He is the purchaser or the debtor liable to pay the amount mentioned in the bill to the drawer. The bill of exchange is accepted by the drawee.
Page No 316:
Question 1.A4:
Answer the following question in one sentence only.
What is due date of bill?
Answer:
The date on which the payment of the bill becomes due is called the due date or the date of maturity. While calculating the due date, it is necessary to add three days to the period of bill. These three days are called "days of grace".
Page No 316:
Question 1.A5:
Answer the following question in one sentence only.
What is an acceptance to bills of exchange?
Answer:
A bill is said to be accepted when the drawee of the bill accepts to pay the amount specified in the bill by writing the word "Accepted" on the bill and then returns it to the drawer.
Page No 316:
Question 1.A6:
Answer the following question in one sentence only.
What is qualified acceptance?
Answer:
When a bill of exchange is accepted with some alterations in relation to the original terms of the bill, such as time, place, amount, parties or any condition to the order of the drawer, it is called qualified acceptance.
Page No 316:
Question 1.A7:
Answer the following question in one sentence only.
When is the bill said to be honoured?
Answer:
When the amount specified in the bill of exchange is paid by the acceptor (i.e. the drawee) on the due date, it is called the honouring of the bill.
Page No 316:
Question 1.A8:
Answer the following question in one sentence only.
When is the bill said to be dishonoured?
Answer:
When the acceptor of the bill refuses to pay the amount of the bill on the date of maturity, the bill is said to be dishonoured.
Page No 316:
Question 1.A9:
Answer the following question in one sentence only.
What is inland bill exchange?
Answer:
A bill of exchange drawn and payable within a country is known as inland bill of exchange.
Page No 316:
Question 1.A10:
Answer the following question in one sentence only.
What is foreign bill of exchange?
Answer:
A bill of exchange drawn in one country and payable in another is known as foreign bill of exchange.
Page No 316:
Question 1.A11:
Answer the following question in one sentence only.
What are noting charges?
Answer:
When a bill is presented for payment and the acceptor fails to make the payment, the bill gets dishonoured. In order to keep a legal proof of such dishonour, the bill gets noted by the Notary Public (who is approved by the government). In exchange for the notary service, the Notary Public charges fees known as noting charges.
Page No 316:
Question 1.A12:
Answer the following question in one sentence only.
When is the amount of bill of exchange payable to a specific person?
Answer:
The amount of the bill is payable either on demand or on the expiry of the fixed period mentioned in the bill.
Page No 316:
Question 1.B1:
Give word / term or phrase for each of the following statement.
A bill of exchange drawn and accepted for a value received.
Answer:
Trade bill
Explanation: A bill of exchange drawn for the amount of purchase by the seller on the purchaser is known as a trade bill.
Page No 316:
Question 1.B2:
Give word / term or phrase for each of the following statement.
A person who draws a bill of exchange.
Answer:
Drawer
Explanation: He is the seller or creditor entitled to receive money from someone. He writes or draws the bill and is known as drawer. The bill of exchange is signed by the drawer of the bill.
Page No 316:
Question 1.B3:
Give word / term or phrase for each of the following statement.
A person on whom a bill of exchange is drawn.
Answer:
Drawee
Explanation: The person on whom the bill is drawn, and who is required to pay the amount mentioned in the bill, is called drawee. He is the purchaser or the debtor and is liable to make payment to the drawer.
Page No 316:
Question 1.B4:
Give word / term or phrase for each of the following statement.
Payment in accordance with the apparent tenor of the bill.
Answer:
Honour
Explanation: When the acceptor of the bill pays the amount specified in the bill on the due date, it is called honouring the bill.
Page No 316:
Question 1.B5:
Give word / term or phrase for each of the following statement.
Nonpayment in accordance with the apparent tenor of the bill.
Answer:
Dishonour
Explanation: When the acceptor of the bill refuses to pay the amount of bill on the due date or becomes insolvent, it is known as dishonour of the bill.
Page No 316:
Question 1.B6:
Give word / term or phrase for each of the following statement.
Acceptance without making any change in the terms of a bill.
Answer:
General acceptance
Explanation: When the drawee of the bill accepts the bill by writing the word 'Accepted' and then signs the bill, it is known as general acceptance.
Page No 316:
Question 1.B7:
Give word / term or phrase for each of the following statement.
Acceptance with some changes as regards the terms of a bill.
Answer:
Qualified acceptance
Explanation: When the terms of a bill of exchange are altered by the acceptor, it is called qualified acceptance. The drawee may refuse to make qualified acceptance.
Page No 316:
Question 1.B8:
Give word / term or phrase for each of the following statement.
A bill of which payment to make on fixed period.
Answer:
After date bill
Explanation: When a bill is drawn ‘after date’, the term of the bill starts from the date of drawing of the bill. Three days of grace are also allowed on such bills.
Page No 316:
Question 1.B9:
Give word / term or phrase for each of the following statement.
The bill which is drawn in one country and payable in other country.
Answer:
Foreign
Explanation: A bill of exchange drawn in one country and payable in another country is known as a foreign bill of exchange. For example, a bill, drawn in India and payable in USA, is a foreign bill.
Page No 316:
Question 1.B10:
Give word / term or phrase for each of the following statement.
Encashment of the bill before due date.
Answer:
Discounting
Explanation: When the holder of a bill needs money before the maturity date, he may present the bill to a bank and get immediate payment on the security of a bill. The bank deducts a certain amount from the face value of the bill and pays the balance. This process is known as discounting.
Page No 316:
Question 1.B11:
Give word / term or phrase for each of the following statement.
The person who transfer the ownership of the bill.
Answer:
Endorser
Explanation: The holder of a bill has an option to transfer the bill in favour of his/her creditor. In such cases, the person who transfers the bill is known as an endorser. Generally, a drawer is an endorser.
Page No 316:
Question 1.B12:
Give word / term or phrase for each of the following statement.
The person in whose favour the bill transferred.
Answer:
Endorsee
Explanation: On endorsement, the person in whose favour the bill is transferred (i.e. the holder’s creditor) is known as an endorsee.
Page No 316:
Question 1.B13:
Give word / term or phrase for each of the following statement.
The three extra days which are allowed over and above the period of the bill.
Answer:
Days of grace
Explanation: The date on which the payment of the bill becomes due is called the due date or the date of maturity. While calculating the due date, it is necessary to add three days to the period of the bill. These three days are known as 'days of grace'.
Page No 316:
Question 1.B14:
Give word / term or phrase for each of the following statement.
Transfer of title of the bill from debtor to creditor.
Answer:
Endorsement
Explanation: Endorsement means when a bill of exchange is signed for the purpose of transferring it to another person. The debtor signs the bill and transfers it to his/her creditor. On endorsement, the endorsee becomes entitled to receive the payment.
Page No 316:
Question 1.B15:
Give word / term or phrase for each of the following statement.
Payment of the bill before due date.
Answer:
Retirement
Explanation: A bill is said to be retired when the acceptor of a bill expresses his willingness to make the payment of the bill before its due date. In such cases, the holder of the bill generally allows a discount to the drawee, which is called rebate. This rebate is a gain for the party that makes the payment (i.e. the drawee) and is expense to the party receiving the payment (i.e. the drawer).
Page No 316:
Question 1.B16:
Give word / term or phrase for each of the following statement.
Fees charged by the Notary public on dishonour of a bill.
Answer:
Noting charges
Explanation: When a bill is presented for payment and the acceptor fails to make the payment, the bill gets dishonoured. In order to keep a legal proof of such dishonour, the bill is noted by the Notary Public (who is approved by the government). In exchange for the notary service, the Notary Public charges fees known as noting charges.
Page No 316:
Question 1.B17:
Give word / term or phrase for each of the following statement.
Officer appointed by Central Government for noting of dishonour bill.
Answer:
Notary Public
Explanation: Notary Public is an officer appointed by the Central or State Government and has the power of noting Negotiable Instruments at the time of their dishonour.
Page No 316:
Question 1.C1:
Write True or False
Bill of exchange is an instrument in writing, containing an unconditional order.
Answer:
True
Explanation: A bill of exchange is an instrument containing in writing an unconditional order to pay a certain sum of money only to or to the order of person or bearer of the instrument. It must be signed by the maker, i.e. drawer of the bill.
Page No 316:
Question 1.C2:
Write True or False
A bill of exchange is signed by the person on whom it is drawn.
Answer:
False
Explanation: A bill of exchange is not signed by the person on whom it is drawn (i.e. the drawee). Rather, it must be signed by the drawer (i.e. the maker) of the bill.
Page No 316:
Question 1.C3:
Write True or False
A person to whom or as per his order, amount of bill is payable is a Payee.
Answer:
True
Explanation: The person to whom the amount of a bill is payable is known as a payee. The drawer himself or a third party, such as an endorsee, can be the payee of the bill.
Page No 316:
Question 1.C4:
Write True or False
Honour of a bill means payment in accordance with the apparent tenor of the bill.
Answer:
True
Explanation: A bill is said to be honoured when the acceptor of the bill makes payment on the due date specified in the bill.
Page No 316:
Question 1.C5:
Write True or False
Acceptance without making any change in the terms of a bill is called general acceptance.
Answer:
True
Explanation: When a bill of exchange is accepted without altering the terms of the bill, it is known as general acceptance, whereas when the terms of a bill of exchange are altered, it is known as qualified acceptance.
Page No 316:
Question 1.C6:
Write True or False
Acceptance with some change as regards the terms of a bill general acceptance.
Answer:
False
Explanation: When acceptance is received with some changes in the terms of a bill, it is known as qualified acceptance. However, when a bill of exchange is accepted without altering the terms of the bill, it is known as general acceptance.
Page No 316:
Question 1.C7:
Write True or False
A bill of which payment to make on fixed period is after date bill.
Answer:
True
Explanation: When a bill is drawn ‘after date’, the term of the bill starts from the date of drawing of the bill. Three days of grace are also allowed on such bills. For example, a bill of exchange drawn on January 23, 2014 is payable 2 months after date. The due date of the bill after adding the days of grace will be March 26, 2014.
Page No 316:
Question 1.C8:
Write True or False
Drawee is a person who holds the title of the bill in due course.
Answer:
False
Explanation: Drawee is the person on whom the bill is drawn and who accepts the bill by writing the word 'Accepted' on it. Any subsequent holder of the bill, who holds the bill in good faith and exchanges something valuable for it, is known as the holder in due course.
Page No 317:
Question 1.C9:
Write True or False
The inland bill which is drawn in and payable in the same country.
Answer:
True
Explanation: An inland bill is a bill that is drawn and made payable in the same country. On the other hand, a bill that is drawn in one country and made payable in another is known as foreign bill.
Page No 317:
Question 1.C10:
Write True or False
Discounting means encashment of the bill before due date.
Answer:
True
Explanation: When the holder of a bill needs money before the maturity date, he may present the bill to a bank and get immediate payment on the security of the bill. The bank deducts a certain amount from the face value of the bill and pays the balance. This process of getting the bill en-cashed before its due date is known as discounting.
Page No 317:
Question 1.C11:
Write True or False
Drawee can transfer the ownership of the bill.
Answer:
False
Explanation: A drawee cannot transfer the ownership of a bill. The drawer or the holder of a bill can transfer the bill of exchange by signing the bill of exchange, i.e. by endorsement.
Page No 317:
Question 1.C12:
Write True or False
Endorsee is person in whose favor the bill transferred.
Answer:
True
Explanation: On endorsement, the person who transfers the bill is known as endorser and the person in whose favour the bill is transferred is known as endorsee.
Page No 317:
Question 1.C13:
Write True or False
Endorsement means transfer of title of the bill from debtor to creditor.
Answer:
True
Explanation: Endorsement means signing the bill for the purpose of transferring it to another. Hence, it can be transferred from debtor to creditor.
Page No 317:
Question 1.C14:
Write True or False
Retirement of bill means payment of the bill before due date.
Answer:
True
Explanation: When the drawee makes the payment of the bill before its due date, it is known as retiring the bill. In such cases, the holder of the bill usually allows discount, which is known as rebate.
Page No 317:
Question 1.C15:
Write True or False
Noting charges are payable to the Notary public on honour of a bill.
Answer:
False
Explanation: Noting charges are paid to the Notary Public, who makes a note of the fact that the acceptor has refused to make the payment on the bill of exchange, i.e. the bill has been dishonoured.
Page No 317:
Question 1.C16:
Write True or False
Payee is official person appointed by Central government for noting of dishonour bill.
Answer:
False
Explanation: A Notary Public is the official person appointed by the central government for noting a bill. He makes a note of the dishonour, i.e. when an acceptor refuses to make the payment. On the other hand, a payee is the person to whom the payment is to be made. A drawer or any other third party can be the payee to a bill of exchange.
Page No 317:
Question 1.C17:
Write True or False
Renewal is a request by drawee to extend the credit period of the bill.
Answer:
True
Explanation: Sometimes, the acceptor of a bill is unable to meet the bill on its due date. In such cases, he might request the holder of the bill to cancel the original bill and draw a new bill in place of the old one. This is known as renewal of bill.
Page No 317:
Question 1.C18:
Write True or False
A bill can't be deposited into bank for collection.
Answer:
False
Explanation: The drawer of a bill can send the bill to its bank with clear instructions to retain the bill and realise the amount of the bill on its due date. This is termed as bill sent to bank for collection. Also, in case of bills discounted with bank, the bank becomes the payee and is entitled to receive the amount on the due date.
Page No 317:
Question 1:
PRACTICAL PROBLEMS
Hitesh sold goods for Rs 4,500 to Ashok on 1.1.2010 and drew upon him a bill of exchange payable 2 months after sight. Ashok accepted the bill and returned the same to Hitesh. On the due date the bill was met by Ashok.
Record the necessary Journal entries in the books of Hitesh and also prepare Ashok account in his books.
1. When the bill was retained by Hitesh till the date of its maturity.
2. When Hitesh immediately discounted the bill @ 15% p.a. with his bank.
3. When three days before its maturity, the bill was sent by Hitesh to his bank for collection.
4. When the bill was endorsed immediately by Hitesh in favour of his creditor Venkat.
Answer:
Case-I
Books of Hitesh
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Jan.01
|
Ashok
|
Dr.
|
|
4,500
|
|
|
To Sales A/c
|
|
|
|
4,500
|
|
(Goods sold to Ashok)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bills Receivable A/c
|
Dr.
|
|
4,500
|
|
|
To Ashok
|
|
|
|
4,500
|
|
(Bill accepted by Ashok)
|
|
|
|
|
|
|
|
|
|
|
Mar.04
|
Bank A/c
|
Dr.
|
|
4,500
|
|
|
To Bills Receivable A/c
|
|
|
|
4,500
|
|
(Bill honoured on maturity)
|
|
|
|
|
|
|
|
|
|
|
Case-II
Books of Hitesh
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Jan.01
|
Ashok
|
Dr.
|
|
4,500
|
|
|
To Sales A/c
|
|
|
|
4,500
|
|
(Goods sold to Ashok)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bills Receivable A/c
|
Dr.
|
|
4,500
|
|
|
To Ashok
|
|
|
|
4,500
|
|
(Bill accepted by Ashok)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bank A/c
|
Dr.
|
|
4,387
|
|
|
Discount Charges A/c
|
Dr.
|
|
113
|
|
|
To Bills Receivable A/c
|
|
|
|
4,500
|
|
(Bill discounted with bank @ 15% per annum)
|
|
|
|
|
|
|
|
|
|
|
Case-III
Books of Hitesh
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Jan.01
|
Ashok
|
Dr.
|
|
4,500
|
|
|
To Sales A/c
|
|
|
|
4,500
|
|
(Goods sold to Ashok)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bills Receivable A/c
|
Dr.
|
|
4,500
|
|
|
To Ashok
|
|
|
|
4,500
|
|
(Bill accepted by Ashok)
|
|
|
|
|
|
|
|
|
|
|
Mar.01
|
Bill Sent for Collection A/c
|
Dr.
|
|
4,500
|
|
|
To Bills Receivable A/c
|
|
|
|
4,500
|
|
(Bill sent for Collection to Bank, 3 days before maturity)
|
|
|
|
|
|
|
|
|
|
|
Mar.04
|
Bank A/c
|
Dr.
|
|
4,500
|
|
|
To Bill Sent for Collection A/c
|
|
|
|
4,500
|
|
(Bill sent for collection to bank, honoured on maturity)
|
|
|
|
|
|
|
|
|
|
|
Case-IV
Books of Hitesh
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Jan.01
|
Ashok
|
Dr.
|
|
4,500
|
|
|
To Sales A/c
|
|
|
|
4,500
|
|
(Goods sold to Ashok)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bills Receivable A/c
|
Dr.
|
|
4,500
|
|
|
To Ashok
|
|
|
|
4,500
|
|
(Bill accepted by Ashok)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Venkat
|
Dr.
|
|
4,500
|
|
|
To Bills Receivable A/c
|
|
|
|
4,500
|
|
(Bill endorsed to Venkat, a creditor)
|
|
|
|
|
|
|
|
|
|
|
Ashok’s Account
|
||||||||
Dr.
|
Cr.
|
|||||||
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
|
2010
|
|
|
|
2010
|
|
|
|
|
Jan.01
|
Sales A/c
|
|
4,500
|
Jan.01
|
Bills Receivable A/c
|
|
4,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,500
|
|
|
|
4,500
|
|
|
|
|
|
|
|
|
|
Note: In all the four cases, Ashok’s A/c will be the same.
Page No 317:
Question 2:
PRACTICAL PROBLEMS
On 2nd Jan., 2011 Kiran of Kanpur purchased goods from Kavita of Kedgaon for Rs 4,850 and gave his acceptance to after date bill for 60 days on 5th Jan, 2011 for the same amount. On the same date Kavita of Kedgaon deposited the bill into bank for collection. On the due date Kiran honoured his acceptance.
You are required to pass journal entries in the books both the parties.
Answer:
Books of Kavita
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
Jan.02
|
Kiran
|
Dr.
|
|
4,850
|
|
|
To Sales A/c
|
|
|
|
4,850
|
|
(Goods sold on credit to Kiran)
|
|
|
|
|
|
|
|
|
|
|
Jan.05
|
Bills Receivable A/c
|
Dr.
|
|
4,850
|
|
|
To Kiran
|
|
|
|
4,850
|
|
(Bill accepted by Kiran)
|
|
|
|
|
|
|
|
|
|
|
Jan.05
|
Bill Sent for Collection A/c
|
Dr.
|
|
4,850
|
|
|
To Bills Receivable A/c
|
|
|
|
4,850
|
|
(Bills sent to bank for collection)
|
|
|
|
|
|
|
|
|
|
|
Mar.06
|
Bank A/c
|
Dr.
|
|
4,850
|
|
|
To Bill Sent for Collection A/c
|
|
|
|
4,850
|
|
(Bill Sent for Collection honoured on maturity)
|
|
|
|
|
|
|
|
|
|
|
Books of Kiran
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
Jan.02
|
Purchases A/c
|
Dr.
|
|
4,850
|
|
|
To Kavita
|
|
|
|
4,850
|
|
(Goods purchased on credit from Kavita)
|
|
|
|
|
|
|
|
|
|
|
Jan.05
|
Kavita
|
Dr.
|
|
4,850
|
|
|
To Bills Payable A/c
|
|
|
|
4,850
|
|
(Bill accepted)
|
|
|
|
|
|
|
|
|
|
|
Mar.06
|
Cash/Bank A/c
|
Dr.
|
|
4,850
|
|
|
To Bills Payable A/c
|
|
|
|
4,850
|
|
(Amount of bill paid on maturity date)
|
|
|
|
|
|
|
|
|
|
|
Page No 317:
Question 3:
PRACTICAL PROBLEMS
Vasanti sold goods on credit of Rs 8,500 to Aruna on 14th July 2009. On the same date Vasanti drew two bills for Rs 5,000 and 3,500 for 2 and 3 months period respectively. Aruna accepted and return immediately. On 21st July, 2009 Vasanti deposited 3 months acceptance to her bank for collections.
On the due date of the respective bills Aruna honoured 2 months acceptance but dishonoured the second for which Vasanti paid nothing chargers Rs 60 and her bank debited 50 for bank chargers
Pass the journal entries in the books of Vasanti and Aruna.
Answer:
Books of Vasanti
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2009
|
|
|
|
|
|
Jul.14
|
Aruna
|
Dr.
|
|
8,500
|
|
|
To Sales A/c
|
|
|
|
8,500
|
|
(Goods sold to Aruna on credit)
|
|
|
|
|
|
|
|
|
|
|
Jul.14
|
Bills Receivable A/c (Bill no 1)
|
|
|
5,000
|
|
|
Bills Receivable A/c (Bill no 2)
|
|
|
3,500
|
|
|
To Aruna
|
|
|
|
8,500
|
|
(Bill accepted by Aruna)
|
|
|
|
|
|
|
|
|
|
|
Jul.21
|
Bill Sent for Collection A/c
|
Dr.
|
|
3,500
|
|
|
To Bills Receivable A/c (Bill no 2)
|
|
|
|
3,500
|
|
(Bill sent to bank for collection)
|
|
|
|
|
|
|
|
|
|
|
Sept.17
|
Bank A/c
|
Dr.
|
|
5,000
|
|
|
To Bill Receivable A/c (Bill no 1)
|
|
|
|
5,000
|
|
(Bill honoured on maturity)
|
|
|
|
|
|
|
|
|
|
|
Oct.17
|
Aruna
|
Dr.
|
|
3,560
|
|
|
To Bill Sent for Collection
|
|
|
|
3,500
|
|
To Bank A/c
|
|
|
|
60
|
|
(Bill sent for collection dishonoured and noting charges of Rs 60 paid by Vasanti)
|
|
|
|
|
|
|
|
|
|
|
Oct.17
|
Bank charges A/c
|
Dr.
|
|
50
|
|
|
To Bank A/c
|
|
|
|
50
|
|
(Bank charges paid)
|
|
|
|
|
|
|
|
|
|
|
Books of Arna
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2009
|
|
|
|
|
|
Jul.14
|
Purchases A/c
|
Dr.
|
|
8,500
|
|
|
To Vasanti
|
|
|
|
8,500
|
|
(Goods purchased on credit from Vasnti)
|
|
|
|
|
|
|
|
|
|
|
Jul.14
|
Vasanti
|
Dr.
|
|
8,500
|
|
|
To Bills Payable A/c (Bill no 1)
|
|
|
|
5,000
|
|
To Bills Payable A/c (Bill no 1)
|
|
|
|
3,500
|
|
(Bills accepted by Aruna)
|
|
|
|
|
|
|
|
|
|
|
Sept.17
|
Cash/Bank A/c
|
Dr.
|
|
5,000
|
|
|
To Bills Payable A/c (Bill no 1)
|
|
|
|
5,000
|
|
(Amount paid on maturity)
|
|
|
|
|
|
|
|
|
|
|
Oct.18
|
Bills Payable A/c (Bill no 1)
|
Dr.
|
|
3,500
|
|
|
Noting Charges A/c
|
Dr.
|
|
60
|
|
|
To Vasanti
|
|
|
|
3,560
|
|
(Bill dishonoured on maturity)
|
|
|
|
|
|
|
|
|
|
|
Page No 317:
Question 4:
PRACTICAL PROBLEMS
Sudhatai sold goods to Chhayatai on credit for 4 months for Rs 10,000 on 7th Sept., 2009. Chhayatai paid on her account of Rs 4,000 at 2% cash discount and accepted bill for the balance at 2 months. On the same date Sudhatai discounted with her bank at 12% p.a. on due date Chhayatai honoured her bill.
A. You required to write journal of Sudhatai.
B. Pass journal entries in the books of Sudhatai assuming that on due date the bill is dishonoured and Sudhatai’s bank paid noting chargers Rs 100.
Answer:
Case-A
Books of Sudhatai
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2009
|
|
|
|
|
|
Sept.07
|
Chhayatai
|
Dr.
|
|
10,000
|
|
|
To Sales A/c
|
|
|
|
10,000
|
|
(Goods sold to Chhayatai)
|
|
|
|
|
|
|
|
|
|
|
Sept.07
|
Cash A/c
|
Dr.
|
|
3,920
|
|
|
Discount A/c
|
Dr.
|
|
80
|
|
|
To Chhayatai
|
|
|
|
4,000
|
|
(Chhayatai paid Rs 4,000 on her account @ cash discount of 2%)
|
|
|
|
|
|
|
|
|
|
|
Sept.07
|
Bills Receivable A/c
|
Dr.
|
|
6,000
|
|
|
To Chhayatai
|
|
|
|
6,000
|
|
(Bill accepted by Chhayatai)
|
|
|
|
|
|
|
|
|
|
|
Sept.07
|
Bank A/c
|
Dr.
|
|
5,880
|
|
|
Discount Charges A/c
|
Dr.
|
|
120
|
|
|
To Bills Receivable A/c
|
|
|
|
6,000
|
|
(Bill discounted with Bank at 12% per annum)
|
|
|
|
|
|
|
|
|
|
|
Case-B
Books of Sudhatai
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2009
|
|
|
|
|
|
Sept.07
|
Chhayatai
|
Dr.
|
|
10,000
|
|
|
To Sales A/c
|
|
|
|
10,000
|
|
(Goods sold to Chhayatai)
|
|
|
|
|
|
|
|
|
|
|
Sept.07
|
Bank A/c
|
Dr.
|
|
3,920
|
|
|
Discount A/c
|
Dr.
|
|
80
|
|
|
To Chhayatai
|
|
|
|
4,000
|
|
(Chhayatai paid Rs 4,000 on her account @ cash discount of 2%)
|
|
|
|
|
|
|
|
|
|
|
Sept.07
|
Bills Receivable A/c
|
Dr.
|
|
6,000
|
|
|
To Chhayatai
|
|
|
|
6,000
|
|
(Bill accepted by Chhayatai)
|
|
|
|
|
|
|
|
|
|
|
Sept.07
|
Bank A/c
|
Dr.
|
|
5,880
|
|
|
Discount Charges A/c
|
Dr.
|
|
120
|
|
|
To Bills Receivable A/c
|
|
|
|
6,000
|
|
(Bill discounted with Bank at 12% per annum)
|
|
|
|
|
|
|
|
|
|
|
Nov.10
|
Chhayatai
|
Dr.
|
|
6,100
|
|
|
To Bank A/c
|
|
|
|
6,100
|
|
(Discounted bill dishonoured and noting charges of Rs 100 paid)
|
|
|
|
|
|
|
|
|
|
|
Page No 317:
Question 5:
PRACTICAL PROBLEMS
On 1st August, 2010 Swapnali sold goods to Swapnil on credit for Rs 20,000. And drew two bills of 60% and 40% of the amount due from Swapnil for 3 and 4 months period respectively. Swapnil accepted and return it to Swapnali immediately. On 1st September 2010 Swapnali send 3 months acceptance to her bank for collection and discounted 4 months acceptance with her bank @ 18% p.a.
On the due date of the respective bills Swapnil honoured 3 months acceptance for which bank debited Rs 50 as bank charges. On due date of 4 months acceptance Swapnil dishonoured for which Swapnali’s bank paid nothing charges Rs 100.
Pass the journal entries in the books of Swapnali and prepare Swapnil’s account in her ledger.
Answer:
Books of Swapnali
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Aug.01
|
Swapnil
|
Dr.
|
|
20,000
|
|
|
To Sales A/c
|
|
|
|
20,000
|
|
(Goods sold to Swapnil on credit)
|
|
|
|
|
|
|
|
|
|
|
Aug.01
|
Bills Receivable A/c (Bill no 1)
|
Dr.
|
|
12,000
|
|
|
Bills Receivable A/c (Bill no 2)
|
Dr.
|
|
8,000
|
|
|
To Swapnil
|
|
|
|
20,000
|
|
(Bill accepted by Swapnil)
|
|
|
|
|
|
|
|
|
|
|
Sept.01
|
Bill Sent for Collection A/c
|
Dr.
|
|
12,000
|
|
|
To Bills Receivable A/c (Bill no 1)
|
|
|
|
12,000
|
|
(Bill sent for collection to bank )
|
|
|
|
|
|
|
|
|
|
|
Sept.01
|
Bank A/c
|
Dr.
|
|
7,640
|
|
|
Discount A/c
|
Dr.
|
|
360
|
|
|
To Bills Receivable A/c (Bill no 2)
|
|
|
|
8,000
|
|
(Bill discounted with bank at 18% per annum before 3 months)
|
|
|
|
|
|
|
|
|
|
|
Nov.04
|
Bank A/c
|
Dr.
|
|
12,000
|
|
|
To Bill Sent for Collection A/c
|
|
|
|
12,000
|
|
(Bill sent for collection honoured on maturity date)
|
|
|
|
|
|
|
|
|
|
|
Nov.04
|
Bank Charges A/c
|
Dr.
|
|
50
|
|
|
To Bank A/c
|
|
|
|
50
|
|
(Bank charges paid)
|
|
|
|
|
|
|
|
|
|
|
Dec.04
|
Swapnil
|
Dr.
|
|
8,100
|
|
|
To Bank A/c
|
|
|
|
8,100
|
|
(Discounted bill dishonoured on maturity date and noting charges paid by bank)
|
|
|
|
|
|
|
|
|
|
|
Swapnil’s Account
|
||||||||
Dr.
|
Cr.
|
|||||||
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
|
2010
|
|
|
|
2010
|
|
|
|
|
Aug.01
|
Sales A/c
|
|
20,000
|
Aug.01
|
Bills Receivable A/c (Bill no 1)
|
|
12,000
|
|
Dec.04
|
Bank A/c
|
|
8,100
|
Aug.01
|
Bills Receivable A/c (Bill no 2)
|
|
8,000
|
|
|
|
|
|
Dec.04
|
Balance c/d
|
|
8,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,100
|
|
|
|
8,100
|
|
|
|
|
|
|
|
|
|
Page No 318:
Question 6:
PRACTICAL PROBLEMS
On 1st August, 2012 Omprakash drew a bill of Rs 10,000 for 60 days after date on Sharadchandra. On 15th August, 2012 Omprakash purchased goods from Hariprasad for Rs 12,000. On the same date Omprakash endorsed Sharadchandra’s bill in favour of Hariprasad and paid the balance by cheque at 1% cash discount. On the same date Hariprasad discounted the bill with his bank for Rs 9,500.
On the due date Sharadchandra honoured his acceptance presented by Hariprasad.
You are required to pass journal entries in the books of Omprakash, Sharadchandra and Hariprasad.
Answer:
Books of Omprakash
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2012
|
|
|
|
|
|
Aug.01
|
Bills Receivable A/c
|
Dr.
|
|
10,000
|
|
|
To Sharadchandra
|
|
|
|
10,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Aug.15
|
Purchases A/c
|
Dr.
|
|
12,000
|
|
|
To Hariprasad
|
|
|
|
12,000
|
|
(Goods purchased from Harichandra on credit)
|
|
|
|
|
|
|
|
|
|
|
Aug.15
|
Hariprasad
|
Dr.
|
|
12,000
|
|
|
To Bank A/c
|
|
|
|
1,980
|
|
To Discount Received A/c
|
|
|
|
20
|
|
To Bills Receivable A/c
|
|
|
|
10,000
|
|
(Bill endorsed to Hariprasad, and rest of the amount paid by cheque at cash discount of 1%)
|
|
|
|
|
|
|
|
|
|
Books of Sharadchandra
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2012
|
|
|
|
|
|
Aug.01
|
Omprakash
|
Dr.
|
|
10,000
|
|
|
To Bills Payable A/c
|
|
|
|
10,000
|
|
(Bill accepted)
|
|
|
|
|
|
|
|
|
|
|
Oct.03
|
Bills Payable A/c
|
Dr.
|
|
10,000
|
|
|
To Cash/Bank A/c
|
|
|
|
10,000
|
|
(Amount of bill paid on maturity)
|
|
|
|
|
|
|
|
|
|
|
Books of Hariprasad
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
Aug15
|
Omprakash
|
Dr.
|
|
12,000
|
|
|
To Sales A/c
|
|
|
|
12,000
|
|
(Goods sold to Omprakash)
|
|
|
|
|
|
|
|
|
|
|
Aug.15
|
Bank A/c
|
Dr.
|
|
1,980
|
|
|
Discount A/c
|
Dr.
|
|
20
|
|
|
Bills Receivable A/c
|
Dr.
|
|
10,000
|
|
|
To Omprakash A/c
|
|
|
|
12,000
|
|
(Endorsed bill accepted for Rs 10,000 and rest of the amount received in cash after allowing cash discount of 1%)
|
|
|
|
|
|
|
|
|
|
|
Oct.03
|
Cash/Bank A/c
|
Dr.
|
|
10,000
|
|
|
To Bills Receivable A/c
|
|
|
|
10,000
|
|
(Endorsed bill honoured on due date)
|
|
|
|
|
|
|
|
|
|
|
Page No 318:
Question 7:
PRACTICAL PROBLEMS
On 5th September, 2010 Prakash Patil accepted a bill of Rs 16,000 drawn by Chandu Chaudhari for 3 months. This bill was drawn for amount which Prakash Patil owed to Chandu Chaudhari. On same date Chandu Chaudhari purchased goods from Magan Mahajan for Rs 20,000 for this Chandu Chaudhari endorsed Prakash Patil’s acceptance in favour of Magan Mahajan and accepted 2 months bill for the balance due. On 5th October, 2010 Magan Mahajan discounted both the bill with his bank @ 12% p.a.
On the due date Prakash Patil’s honoured his acceptance while Chandu Chaudhari unable to meet the payment for his acceptance. Magan Mahajan’s bank paid noting charges Rs 100.
Pass Journal entries in the books of Magan Mahajan and also prepare Prakash Patil’s and Magan Mahajan ledger account in the books of Chandu Chaudhari.
Answer:
Books of Magan Mahajan
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Sept.05
|
Chandu Chaudhari
|
Dr.
|
|
20,000
|
|
|
To Sales A/c
|
|
|
|
20,000
|
|
(Goods sold to Chandu Chaudhari)
|
|
|
|
|
|
|
|
|
|
|
Sept.05
|
Bills Receivable A/c (Bill no 1)
|
Dr.
|
|
16,000
|
|
|
Bills Receivable A/c (Bill no 2)
|
|
|
4,000
|
|
|
To Chandu Chaudhari
|
|
|
|
20,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Oct.05
|
Bank A/c
|
Dr.
|
|
15,680
|
|
|
Discount A/c
|
Dr.
|
|
320
|
|
|
To Bills Receivable A/c (Bill no 1)
|
|
|
|
16,000
|
|
(Bill discounted with the Bank @ 12% per annum before 2 months)
|
|
|
|
|
|
|
|
|
|
|
Oct.05
|
Bank A/c
|
Dr.
|
|
3,960
|
|
|
Discount A/c
|
Dr.
|
|
40
|
|
|
To Bills Receivable A/c (Bill no 2)
|
|
|
|
4,000
|
|
(Bill discounted with the Bank @ 12% per annum before 2 months)
|
|
|
|
|
|
|
|
|
|
|
Nov.08
|
Chandu Chaudhari
|
Dr.
|
|
4,100
|
|
|
To Bank A/c
|
|
|
|
4,100
|
|
(Discounted bill dishonoured on maturity date, noting charges of Rs 100 paid)
|
|
|
|
|
|
|
|
|
|
|
Prakash Patil’s Account
|
||||||||
Dr.
|
Cr.
|
|||||||
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
|
2011
|
|
|
|
2011
|
|
|
|
|
Sept.05
|
Balance b/d
|
|
16,000
|
Sept.05
|
Bills Receivable A/c
|
|
16,000
|
|
|
|
|
16,000
|
|
|
|
16,000
|
|
|
|
|
|
|
|
|
|
Magan Mahajan’s Account
|
||||||||
Dr.
|
Cr.
|
|||||||
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
|
2011
|
|
|
|
2011
|
|
|
|
|
Sept.05
|
Bills Receivable A/c
|
|
16,000
|
Sept.05
|
Purchases A/c
|
|
20,000
|
|
Sept.05
|
Bills Payable A/c
|
|
4,000
|
Nov.08
|
Bills Payable A/c
|
|
4,100
|
|
Nov.08
|
Balance c/d
|
|
4,100
|
|
|
|
|
|
|
|
|
24,100
|
|
|
|
24,100
|
|
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Page No 318:
Question 8:
PRACTICAL PROBLEMS
Harbhajan draws a bill on Manmit for Rs 8,000 at 3 months. Manmit accepts and return to Harbhajan. Harbhajan then sends the bill towards his bank for collections.
On due date Manmit find himself unable to make payment of the bill and request Harbhajan to renew it. He accepted the proposal on the condition that Manmit should pay Rs 2,000 along with interest @ 15% p.a. in cash and should accepts new bill for the balance at 2 months. These arrangements were carried through. One month before Manmit retired his acceptance @ 12% p.a.
Give journal entries and Manmit’s Account in the books of Harbhajan.
Answer:
Books of Harbhajan
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
|
|
|
|
|
|
|
Bills Receivable A/c
|
Dr.
|
|
8,000
|
|
|
To Manmit
|
|
|
|
8,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
|
Manmit
|
Dr.
|
|
8,000
|
|
|
To Bills Receivable A/c
|
|
|
|
8,000
|
|
(Bill dishonoured on due date)
|
|
|
|
|
|
|
|
|
|
|
|
Manmit
|
Dr.
|
|
150
|
|
|
To Interest A/c
|
|
|
|
150
|
|
(Interest charged for renewal of bill)
|
|
|
|
|
|
|
|
|
|
|
|
Cash A/c
|
Dr.
|
|
2,150
|
|
|
Bills Receivable A/c
|
Dr.
|
|
6,000
|
|
|
To Manmit
|
|
|
|
8,150
|
|
(Rs 2,000 along with the interest received in advance and for rest of the amount new bill was drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
|
Cash A/c
|
Dr.
|
|
5,940
|
|
|
Rebate A/c
|
Dr.
|
|
60
|
|
|
To Bills Receivable A/c
|
|
|
|
6,000
|
|
(Bill retired by Manmit before one month @ 12% per annum)
|
|
|
|
|
|
|
|
|
|
|
Manmit’s Account
|
||||||||
Dr.
|
Cr.
|
|||||||
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
|
|
|
|
|
|
|
|
|
|
|
Balance b/d
|
|
8,000
|
|
Bills Receivable A/c
|
|
8,000
|
|
|
Bills Receivable A/c
|
|
8,000
|
|
Cash A/c
|
|
2,150
|
|
|
Interest A/c
|
|
150
|
|
Bills Receivable A/c
|
|
6,000
|
|
|
|
|
16,150
|
|
|
|
16,150
|
|
|
|
|
|
|
|
|
|
Page No 318:
Question 9:
PRACTICAL PROBLEMS
On 1st April, 2011 Umakant draws a bill for Rs 25,000 on Laxmikant for 4 months period. The bill is accepted and returned to Umakant. On the same date Umakant discounted the bill with his bank @ 12% p.a.
Before due date Laxmikant finds himself unable the bill, hence required Umakant to renew the bill for further period of 2 months. Umakant agreed and he took the bill back from bank and received new acceptance for Rs 26,000 including interest. This new bill is duly honoured by Laxmikant on due date.
Write Journal of Umakant and Laxmikant for the above bill transactions.
Answer:
Books of Umakant
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
Apr.01
|
Bills Receivable A/c
|
Dr.
|
|
25,000
|
|
|
To Laxmikant
|
|
|
|
25,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Apr.01
|
Bank A/c
|
Dr.
|
|
24,000
|
|
|
Discount Charges A/c
|
Dr.
|
|
1,000
|
|
|
To Bills Receivable A/c
|
|
|
|
25,000
|
|
(Bill discounted with Bank @ 12% per annum before 4 months)
|
|
|
|
|
|
|
|
|
|
|
Aug.04
|
Laxmikant
|
Dr.
|
|
25,000
|
|
|
To Bank A/c
|
|
|
|
25,000
|
|
(Bill cancelled)
|
|
|
|
|
|
|
|
|
|
|
Aug.04
|
Laxmikant
|
Dr.
|
|
1,000
|
|
|
To Interest A/c
|
|
|
|
1,000
|
|
(Interest charges due)
|
|
|
|
|
|
|
|
|
|
|
Aug.04
|
Bills Receivable A/c
|
Dr.
|
|
26,000
|
|
|
To Laxmikant
|
|
|
|
26,000
|
|
(New bill was drawn and accepted including interest of Rs 1,000)
|
|
|
|
|
|
|
|
|
|
|
Oct.07
|
Bank A/c
|
Dr.
|
|
26,000
|
|
|
To Bills Receivable A/c
|
|
|
|
26,000
|
|
(Bill honoured on due date)
|
|
|
|
|
|
|
|
|
|
|
Books of Laxmikant
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
Apr.01
|
Umakant
|
Dr.
|
|
25,000
|
|
|
To Bills Payable A/c
|
|
|
|
25,000
|
|
(Bills accepted)
|
|
|
|
|
|
|
|
|
|
|
Aug.04
|
Bills Payable A/c
|
Dr.
|
|
25,000
|
|
|
To Umakant
|
|
|
|
25,000
|
|
(Bill cancelled)
|
|
|
|
|
|
|
|
|
|
|
Aug.04
|
Interest A/c
|
Dr.
|
|
1,000
|
|
|
To Umakant
|
|
|
|
1,000
|
|
(Interest charges due)
|
|
|
|
|
|
|
|
|
|
|
Aug.04
|
Umakant
|
Dr.
|
|
26,000
|
|
|
To Bills Payable A/c
|
|
|
|
26,000
|
|
(New bill accepted including interest of Rs 1,000)
|
|
|
|
|
|
|
|
|
|
|
Oct.07
|
Bills Payable A/c
|
Dr.
|
|
26,000
|
|
|
To Bank A/c
|
|
|
|
26,000
|
|
(Amount of bill paid on due date)
|
|
|
|
|
|
|
|
|
|
|
Page No 318:
Question 10:
PRACTICAL PROBLEMS
On 1st June, 2010 Narayan draws a bill for Rs 50,000 on Chunilal for 4 months period.
The bill is duly accepted and returned to Narayan. One month after the date. Narayan discounted the bill with bank @ 18% p.a.
Before due date Chunilal dishonoured his acceptance. Bank paid noting charges Rs 1,125. Narayan requested to renew the bill for further period of 2 months. Narayan agreed he took the bill back from bank and received new acceptance for 40% amount of the bill with full amount of noting charges and cheque for 60% balance plus interest @ 12% p.a.
Before the due date Chunilal declared insolvent and 30% of the amount due could be recovered from his private estate.
Write Journal of Narayan and Chunilal for the above bill transactions.
Answer:
Books of Narayan
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Jun.01
|
Bills Receivable A/c
|
Dr.
|
|
50,000
|
|
|
To Chunilal
|
|
|
|
50,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Jul.01
|
Bank A/c
|
Dr.
|
|
47,750
|
|
|
Discount Charges A/c
|
Dr.
|
|
2,250
|
|
|
To Bills Receivable A/c
|
|
|
|
50,000
|
|
(Bill discounted with Bank @ 185 per annum before 3 months)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Chunilal
|
Dr.
|
|
51,125
|
|
|
To Bank A/c
|
|
|
|
51,125
|
|
(Discounted bill cancelled and noting charges of Rs 1,125 paid)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Chunilal
|
Dr.
|
|
400
|
|
|
To Interest A/c
|
|
|
|
400
|
|
(Interest charges due)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Bank A/c
|
Dr.
|
|
30,400
|
|
|
To Chunilal
|
|
|
|
30,400
|
|
(60% of the amount with interest charges received by cheque)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Bill Receivable A/c
|
Dr.
|
|
21,125
|
|
|
To Chunilal
|
|
|
|
21,125
|
|
(New Bill was drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Dec.07
|
Chunilal
|
Dr.
|
|
21,125
|
|
|
To Bill Receivable A/c
|
|
|
|
21,125
|
|
(Bill cancelled on insolvency)
|
|
|
|
|
|
|
|
|
|
|
Dec.07
|
Cash/Bank A/c
|
Dr.
|
|
6,338
|
|
|
Bad-Debts A/c
|
Dr.
|
|
14,787
|
|
|
To Chunilal
|
|
|
|
21,125
|
|
(Chunilal became insolvent and only 30% of the amount recovered from his property)
|
|
|
|
|
|
|
|
|
|
|
Books of Chunilal
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Jun.01
|
Narayan
|
Dr.
|
|
50,000
|
|
|
To Bills Payable
|
|
|
|
50,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Bills Payable A/c
|
Dr.
|
|
50,000
|
|
|
Noting Charges A/c
|
Dr.
|
|
1,125
|
|
|
To Narayan
|
|
|
|
51,125
|
|
(Bill cancelled with noting charges of Rs 1,125 paid by Narayan’s Bank A/c)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Interest A/c
|
Dr.
|
|
400
|
|
|
To Narayan
|
|
|
|
400
|
|
(Interest charges due)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Narayan
|
Dr.
|
|
30,400
|
|
|
To Bank A/c
|
|
|
|
30,400
|
|
(60% of the mount along with interest paid by cheque)
|
|
|
|
|
|
|
|
|
|
|
Oct.04
|
Narayan
|
Dr.
|
|
21,125
|
|
|
To Bills Payable A/c
|
|
|
|
21,125
|
|
(New bill was accepted for 40% of the amount along with noting charges)
|
|
|
|
|
|
|
|
|
|
|
Dec.07
|
Bills Payable A/c
|
Dr.
|
|
21,125
|
|
|
To Narayan
|
|
|
|
21,125
|
|
(Bill cancelled on insolvency)
|
|
|
|
|
|
|
|
|
|
|
Dec.07
|
Narayan
|
Dr.
|
|
21,125
|
|
|
To Cash/Bank A/c
|
|
|
|
6,338
|
|
To Deficiency A/c
|
|
|
|
14,787
|
|
(Chunilal became insolvent and only 30% amount paid and rest of the amount written off as deficiency)
|
|
|
|
|
|
|
|
|
|
|
Page No 319:
Question 11:
PRACTICAL PROBLEMS
Sushant owes Surekha Rs 1,25,000 Surekha draws a bill for Rs 1,00,000 on Sushant for 4 months period and received the cheque for the balance. The bill is duly accepted and returned by Sushant. On the same date Surekha endorsed Sushant’s acceptance to Suresh.
On the due date Suresh informed Surekha that Sushant dishonoured his acceptance and Rs 3,175 paid as noting charges Surekha then drew a new bill for 3 month on Sushant including noting charges and interest Rs 4,000. On the due date bill was duly honoured by Sushant.
Write Journal entries in the books of Surekha and prepare Surekha’s account in the books of Sushant.
Answer:
Books of Surekha
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
25,000
|
|
|
Bills Receivable A/c
|
Dr.
|
|
1,00,000
|
|
|
To Sushant
|
|
|
|
1,25,000
|
|
(Bill drawn and accepted and rest of the amount received in Cash)
|
|
|
|
|
|
|
|
|
|
|
|
Suresh
|
Dr.
|
|
1,00,000
|
|
|
To Bills Receivable A/c
|
|
|
|
1,00,000
|
|
(Bill endorsed to Suresh, a creditor)
|
|
|
|
|
|
|
|
|
|
|
|
Sushant
|
Dr.
|
|
1,03,175
|
|
|
To Suresh
|
|
|
|
1,03,175
|
|
(Bill endorsed to Suresh, dishonoured and noting charges of Rs 3,175 paid)
|
|
|
|
|
|
|
|
|
|
|
|
Bills Receivable A/c
|
Dr.
|
|
1,07,175
|
|
|
To Sushant
|
|
|
|
1,03,175
|
|
To Interest A/c
|
|
|
|
4,000
|
|
(New bill drawn and accepted including interest of Rs 4,000)
|
|
|
|
|
|
|
|
|
|
|
|
Cash/Bank A/c
|
Dr.
|
|
1,07,175
|
|
|
To Bills Receivable A/c
|
|
|
|
1,07,175
|
|
(Bill honoured on due date)
|
|
|
|
|
|
|
|
|
|
|
In the Books of Sushant |
||||||||
Surekha’s Account |
||||||||
Dr. |
Cr. |
|||||||
Date |
Particulars |
J.F. |
Amount (Rs) |
Date |
Particulars |
J.F. |
Amount (Rs) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
|
25,000 |
|
Balance b/d |
|
1,25,000 |
|
|
Bills Payable A/c |
|
1,00,000 |
|
Bills Payable A/c |
|
1,00,000 |
|
|
Bills Payable |
|
1,07,175 |
|
Noting Charges A/c |
|
3,175 |
|
|
|
|
|
|
Interest A/c |
|
4,000 |
|
|
|
|
2,32,175 |
|
|
|
2,32,175 |
|
|
|
|
|
|
|
|
|
Page No 319:
Question 12:
PRACTICAL PROBLEMS
On 7th May, 2011 Kulkarni of Karvenagar draws a bill on Patwardhan of Latur for Rs 18,000 at 3 months. Patwardhan accepts and returns it to Kulkarni. Kulkarni then sent the bill into his bank for collections.
On due date Patwardhan finds himself unable to make payment of the bill and request Kulkarni to renew it. Kulkarni agreed on the condition that Patwardhan should pay Rs 5,000 in cash, and should accept new bill for the balance at 2 months with interest @ 18% p.a. These arrangements were carried through. Before due date Patwardhan declared as insolvent and 20% of the amount due could be recovered from his private estate as first and final dividend.
Give journal entries in the books of Kulkarnis. Also prepare Kulkarni’s Accounts in the books of Patwardhan.
Answer:
Books of Kulkarni
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
May.07
|
Bills Receivable A/c
|
Dr.
|
|
18,000
|
|
|
To Patwardhan
|
|
|
|
18,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
May.07
|
Bill Sent for Collection A/c
|
Dr.
|
|
18,000
|
|
|
To Bills Receivable A/c
|
|
|
|
18,000
|
|
(Bill sent to bank for collection)
|
|
|
|
|
|
|
|
|
|
|
Aug.10
|
Patwardhan
|
Dr.
|
|
18,000
|
|
|
To Bill Sent for Collection A/c
|
|
|
|
18,000
|
|
(Bill cancelled)
|
|
|
|
|
|
|
|
|
|
|
Aug.10
|
Cash A/c
|
Dr.
|
|
5,000
|
|
|
To Patwardhan
|
|
|
|
5,000
|
|
(Cash received from Patwardhan)
|
|
|
|
|
|
|
|
|
|
|
Aug.10
|
Patwardhan
|
Dr.
|
|
390
|
|
|
To Interest A/c
|
|
|
|
390
|
|
(Interest charges due on Rs 13,000 @ 18% for 2 months)
|
|
|
|
|
|
|
|
|
|
|
Aug.10
|
Bills Receivable A/c
|
Dr.
|
|
13,390
|
|
|
To Patwardhan
|
|
|
|
13,390
|
|
(New bill drawn and accepted with interest of Rs 390)
|
|
|
|
|
|
|
|
|
|
|
Oct.13
|
Patwardhan
|
Dr.
|
|
13,390
|
|
|
To Bills Receivable A/c
|
|
|
|
13,390
|
|
(Bill cancelled due to insolvency)
|
|
|
|
|
|
|
|
|
|
|
Oct.13
|
Cash/Bank A/c
|
Dr.
|
|
2,678
|
|
|
Bad-Debts A/c
|
Dr.
|
|
10,712
|
|
|
To Patwardhan
|
|
|
|
13,390
|
|
(20% of the amount recovered from his private estate)
|
|
|
|
|
|
|
|
|
|
|
In the Books of Patwardhan
|
||||||||
Kulkarni’s Account
|
||||||||
Dr.
|
Cr.
|
|||||||
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
Date
|
Particulars
|
J.F.
|
Amount
(Rs)
|
|
2011
|
|
|
|
2011
|
|
|
|
|
May.07
|
Bills Payable A/c
|
|
18,000
|
May.07
|
Balance b/d
|
|
18,000
|
|
Aug.10
|
Cash A/c
|
|
5,000
|
Aug.10
|
Bills Payable A/c
|
|
18,000
|
|
Aug.10
|
Bills Payable
|
|
13,390
|
Oct.13
|
Interest A/c
|
|
390
|
|
Oct.13
|
Cash A/c
|
|
2,678
|
Oct.13
|
Bills Payable A/c
|
|
13,390
|
|
Oct.13
|
Deficiency
|
|
10,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49,780
|
|
|
|
49,780
|
|
|
|
|
|
|
|
|
|
Page No 319:
Question 13:
On 1st Sept., 2010 Badrinath drew a bill of Rs 20,000 on Dinanath at 4 months. The bill was duly accepted by Dinanath. On 5th Sept., 2010 Badrinath endorsed the bill in favour of Somnath. However on 1st January, 2012 Dinanath approached to Badrinath and requested bill be renewed for a further period of 3 months at 15% p.a. Badrinath agreed and paid necessary money to Somnath. Before one month of the due date of the new bill Dinanath retired his acceptance @ 10% p.a.
Pass journal entries in the books Badrinath and Dinanath.
Answer:
Books of Badrinath
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Sept.01
|
Bills Receivable A/c
|
Dr.
|
|
20,000
|
|
|
To Dinanath
|
|
|
|
20,000
|
|
(Bill drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Sept.05
|
Somnath
|
Dr.
|
|
20,000
|
|
|
To Bills Receivable A/c
|
|
|
|
20,000
|
|
(Bill endorsed to Somnath)
|
|
|
|
|
2011
|
|
|
|
|
|
Jan.01
|
Dinnanth
|
Dr.
|
|
20,000
|
|
|
To Badrinath
|
|
|
|
20,000
|
|
(Bill cancelled)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Badrinath
|
Dr.
|
|
750
|
|
|
To Interest A/c
|
|
|
|
750
|
|
(Interest charges due on Rs 20,000 @ 15% per annum for 3 moths)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bills Receivable A/c
|
Dr.
|
|
20,750
|
|
|
To Badrinath
|
|
|
|
20,750
|
|
(New bill was drawn and accepted including interest of Rs 750)
|
|
|
|
|
|
|
|
|
|
|
Feb.01
|
Cash/Bank A/c
|
Dr.
|
|
20,577
|
|
|
Rebate A/c
|
Dr.
|
|
173
|
|
|
To Bills Receivable A/c
|
|
|
|
20,750
|
|
(Bill retired under the rebate of 10% per annum, one month before the due date)
|
|
|
|
|
|
|
|
|
|
|
Books of Dinanath
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
Sept.01
|
Badrinath
|
Dr.
|
|
20,000
|
|
|
To Bills Payable A/c
|
|
|
|
20,000
|
|
(Bill accepted)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Bills Payable A/c
|
Dr.
|
|
20,000
|
|
|
To Badrinath
|
|
|
|
20,000
|
|
(Bill cancelled)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Interest A/c
|
Dr.
|
|
750
|
|
|
To Badrinath
|
|
|
|
750
|
|
(Interest charges due on Rs 20,000 @ 15% for 3 months)
|
|
|
|
|
|
|
|
|
|
|
Jan.01
|
Badrinath
|
Dr.
|
|
20,750
|
|
|
To Bills Payable A/c
|
|
|
|
20,750
|
|
(Bill accepted with interest charges of Rs 750)
|
|
|
|
|
|
|
|
|
|
|
Feb.01
|
Bills Payable A/c
|
Dr.
|
|
20,750
|
|
|
To Cash/Bank A/c
|
|
|
|
20,577
|
|
To Rebate A/c
|
|
|
|
173
|
|
(Bill retired under the rebate of 10% per annum, one month before the due date)
|
|
|
|
|
|
|
|
|
|
|
Note: As per the book, Dinanath approached Badrinath for the renewal of bill on January 01,2012 but it should be on January 01,2011.
Page No 319:
Question 14:
PRACTICAL PROBLEMS
Journalise the following bill transactions in the books of Gopal as on 14th August, 2010.
1. Shruti’s acceptance to Gopal Rs 4,500 retired one month before due date at rebate 10% p.a.
2. Discounted 3 months acceptance of Chandrakant for Rs 3,500 with bank @ 12% p.a.
3. Received cheque Rs 2,000 and 2 months acceptance drawn on Sushama for Rs 10,000 for the balance due on her account.
4. Endorsed Shantaram’s acceptance at 2 months of Rs 5,000 in favour of Balchandra and paid cash Rs 2,500 in full settlement of this account Rs 7,800.
5. Sold goods of Rs 13,500 on credit to Nanda. Drew 2 months bill on her. Which is duly accepted and returned by her.
Answer:
Books of Gopal |
|||||
Journal Entry |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2010 |
|
|
|
|
|
Aug.14 |
Cash/Bank A/c |
Dr. |
|
4,462 |
|
1. |
Rebate A/c |
Dr. |
|
38 |
|
|
To Bills Receivable A/c |
|
|
|
4,500 |
|
(Bill retired under the rebate of 10% per annum, one before the due date) |
|
|
|
|
|
|
|
|
|
|
Aug.14 |
Bank A/c |
Dr. |
|
3,395 |
|
2. |
Discount A/c |
Dr. |
|
105 |
|
|
To Bills receivable A/c |
|
|
|
3,500 |
|
(Bill discounted with Bank @ 12% per annum before 3 months) |
|
|
|
|
|
|
|
|
|
|
Aug,14 |
Bank A/c |
Dr. |
|
2,000 |
|
3. |
Bills Receivable A/c |
Dr. |
|
10,000 |
|
|
To Sushama |
|
|
|
12,000 |
|
(cheque received for Rs 20,000 and for Rs 10,000 bill has been drawn and accepted) |
|
|
|
|
|
|
|
|
|
|
Aug.14 |
Balchandra |
Dr. |
|
7,800 |
|
4. |
To Cash A/c |
|
|
|
2,000 |
|
To Discount Received A/c |
|
|
|
800 |
|
To Bills Receivable A/c |
|
|
|
5,000 |
|
(Cash of Rs 2,000 paid and bill for Rs 5,000 endorsed to Balchandra, a creditor, in full settlement of his account of Rs 7,800) |
|
|
|
|
|
|
|
|
|
|
Aug.14 |
Nanda |
Dr. |
|
13,500 |
|
5. |
To Sales A/c |
|
|
|
13,500 |
|
(Goods sold to Nanda on credit) |
|
|
|
|
|
|
|
|
|
|
Aug.14 |
Bills Receivable A/c |
Dr. |
|
13,500 |
|
|
To Nanda |
|
|
|
13,500 |
|
(Bill drawn and accepted) |
|
|
|
|
|
|
|
|
|
|
Page No 319:
Question 15:
PRACTICAL PROBLEMS
Journalise the following bill transactions as on 21st May, 2010 in the books of Prabodhan.
A. Renewed Veerendra’s acceptance of Rs 17,500 due on 21st May 2010 with interest Rs 500 for 2 months.
B. Bank informed that Radhabai’s acceptance of Rs 1,400 which was discounted dishonoured, bank paid noting charges Rs 185.
C. Sent acceptance of Rs 12,000 at 120 days after sight, drawn by Mudhukar for the amount due to him.
D. Pandharinath honoured his acceptance of Rs 8,500 which was deposited into bank for collection.
Answer:
Books of Prabodhan
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2010
|
|
|
|
|
|
May 21
|
Veerendra
|
Dr.
|
|
17,500
|
|
A.
|
To Bills Receivable A/c
|
|
|
|
17,500
|
|
(Verendra’s acceptance cancelled for renewal)
|
|
|
|
|
|
|
|
|
|
|
May 21
|
Veerendra
|
Dr.
|
|
500
|
|
|
To Interest
|
|
|
|
500
|
|
(Interest charged on his account)
|
|
|
|
|
|
|
|
|
|
|
May 21
|
Bills Receivable A/c
|
Dr.
|
|
18,000
|
|
|
To Veerendra
|
|
|
|
18,000
|
|
(New bill has been drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
May 21
|
Radhabai
|
Dr.
|
|
1,585
|
|
B.
|
To Bank A/c
|
|
|
|
1,585
|
|
(Bill discounted with Bank dishonoured and noting charges of Rs 185 has been paid)
|
|
|
|
|
|
|
|
|
|
|
May 21
|
Mudhukar
|
Dr.
|
|
12,000
|
|
C.
|
To Bills Payable A/c
|
|
|
|
12,000
|
|
(Bill accepted)
|
|
|
|
|
|
|
|
|
|
|
May 21
|
Bank A/c
|
Dr.
|
|
8,500
|
|
D.
|
To Bill Sent for Collection A/c
|
|
|
|
8,500
|
|
(Bill honoured which was sent to bank for collection)
|
|
|
|
|
|
|
|
|
|
|
Page No 319:
Question 16:
PRACTICAL PROBLEMS
Journalise the following bill transactions as on 31st July, 2011 in the books of Pratapsing.
A. Renewed Vinyak’s acceptance of Rs 6,000 due on 31st July, 2011 by accepting cash Rs 2,000 and drawing bill for the balance with interest @ 18% p.a. for 3 months.
B. Accepted a bill of Rs 5,000 at 3 months at sight, drawn by Arvind for the amount due to him Rs 6,000 and balance paid by cheque.
C. Jethabhai honoured his acceptance of Rs 9,800 which was deposited into bank for collection and bank debited Rs 80 for bank charges.
D. Bank informed that Prajakta’s acceptance of Rs 4,000 which was discounted dishonoured, bank paid noting charge Rs 85. Renewed at her request for next 2 months with interest @ 18% p.a.
Answer:
Books of Pratapsing
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
Jul.31
|
Vinyak
|
Dr.
|
|
6,000
|
|
A.
|
To Bills Receivable A/c
|
|
|
|
6,000
|
|
(Bill cancelled for renewal of acceptance)
|
|
|
|
|
|
|
|
|
|
|
|
Vinyak
|
Dr.
|
|
180
|
|
|
To Interest A/c
|
|
|
|
180
|
|
(Interest charged on his account for Rs 4,000 @ 18% per annum for 3 months)
|
|
|
|
|
|
|
|
|
|
|
|
Cash A/c
|
Dr.
|
|
2,000
|
|
|
Bills Receivable A/c
|
Dr.
|
|
4,180
|
|
|
To Vinyak
|
|
|
|
6,180
|
|
(Cash received and new bill has been drawn and accepted)
|
|
|
|
|
|
|
|
|
|
|
Jul.31
|
|
|
|
|
|
B.
|
Arvind
|
Dr.
|
|
6,000
|
|
|
To Bank A/c
|
|
|
|
1,000
|
|
To Bills Receivable A/c
|
|
|
|
5,000
|
|
(Bill of Rs 5,000 accepted and rest of the amount paid by cheque)
|
|
|
|
|
|
|
|
|
|
|
Jul.31
|
Bank A/c
|
Dr.
|
|
9,800
|
|
C.
|
To Bill sent for Collection A/c
|
|
|
|
9,800
|
|
(Bill sent for collection, honoured on due date)
|
|
|
|
|
|
|
|
|
|
|
|
Bank Charges A/c
|
Dr.
|
|
80
|
|
|
To Bank A/c
|
|
|
|
80
|
|
(Bank Charges paid)
|
|
|
|
|
|
|
|
|
|
|
Jul.31
|
|
|
|
|
|
D.
|
Prajakta
|
Dr.
|
|
4,085
|
|
|
To Bank A/c
|
|
|
|
4,085
|
|
(Bill discounted with Bank, dishonoured and noting charges of Rs 85 paid)
|
|
|
|
|
|
|
|
|
|
|
|
Parjakta
|
Dr.
|
|
123
|
|
|
To Interest A/c
|
|
|
|
123
|
|
(Interest charges due on Rs 4,085 @ 18% per annum for 2 months)
|
|
|
|
|
|
|
|
|
|
|
|
Bills Receivable A/c
|
Dr.
|
|
4,208
|
|
|
To Prajkta
|
|
|
|
4,208
|
|
(New Bill has been drawn and accepted)
|
|
|
|
|
|
|
|
|
|
Page No 320:
Question 17:
PRACTICAL PROBLEMS
Journalise the following transactions on following dates in the books of Ankur.
A. On 1st April, 2011 Kiran informs Ankur that Kajol’s acceptance of Rs 8,000 endorsed to him dishonoured and noting charges paid Rs 250.
B. On 11th April, 2011 Ankur renews his acceptance of Rs 7,400 to Amol by paying cash Rs 2,400 and accepting new bill for 2 months for the balance plus interest @ 15% p.a.
C. On 15th April, 2011 Nilima retired her acceptance to Ankur of Rs 5,700 by paying cash Rs 5,300.
D. On 21st April, 2011 recovered Rs 50% of the amount due, from the private estate of Liladhar who declared as insolvent, against his bill of Rs 3,800 which was dishonoured by him on 29th December, 2010 and noting charges paid Rs 80.
Answer:
Books of Ankur
|
|||||
Journal Entry
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
2011
|
|
|
|
|
|
Apr,01
|
Kajol
|
Dr.
|
|
8,250
|
|
A.
|
To Kiran
|
|
|
|
8,250
|
|
(Kajol’s acceptance endorsed to Kiran was dishonoured and noting charges incurred)
|
|
|
|
|
|
|
|
|
|
|
Apr.11
|
Ankur
|
Dr.
|
|
7,400
|
|
B.
|
To Bills Receivable A/c
|
|
|
|
7,400
|
|
(Bill cancelled for renewal)
|
|
|
|
|
|
|
|
|
|
|
|
Ankur
|
Dr.
|
|
125
|
|
|
To Interest A/c
|
|
|
|
125
|
|
(Interest charges due on Rs 5,000 @ 15% for 2 months)
|
|
|
|
|
|
|
|
|
|
|
|
Cash A/c
|
Dr.
|
|
2,400
|
|
|
Bills Receivable A/c
|
Dr.
|
|
5,125
|
|
|
To Ankur
|
|
|
|
7,125
|
|
(Cash received and new bill has been drawn and accepted including Interest charges)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apr.15
|
Cash A/c
|
Dr.
|
|
5,300
|
|
C.
|
Rebate A/c
|
Dr.
|
|
400
|
|
|
To Bills Receivable A/c
|
|
|
|
5,700
|
|
(Bill retired under the rebate of Rs 400)
|
|
|
|
|
|
|
|
|
|
|
Apr.21
|
Cash/Bank A/c
|
Dr.
|
|
1,940
|
|
D.
|
Bad-Debts A/c
|
Dr.
|
|
1,940
|
|
|
To Liladhar
|
|
|
|
3,880
|
|
(Liladhar became insolvent and 50% of the amount recovered from his private estate)
|
|
|
|
|
|
|
|
|
|
|
Page No 320:
Question 18:
PRACTICAL PROBLEMS
Journalise the following transactions on following dates in the books of Gajanan
A. On 3rd October, 2012 Bankatlal informs Gajanan that Navnath’s acceptance of Rs 16,000 endorsed to him dishonoured and noting charges paid Rs 200.
B. On 9th October, 2012 Vishwanath’s acceptance for 120 days of Rs 15,500 dated 24th September, 2008 deposited into bank for collections.
C. On 11th October 2012 Gajanan sold goods to Kartik for Rs 4,500 and received own acceptance from him, which was given to milind of Rs 4,500 and due for payment on this date.
D. 20th October, 2012 recovered 40% of the amount due the private estate of Jyoti who declared as insolvent, against bill accepted by her for Rs 6,000 which was dishonoured on 29th September, 2008.
E. On 21st October, 2012 Gajanan renews his acceptance of Rs 7,500 to Pandurang by paying cheque Rs 3,500 and accepting new bill for 2 months for the balance plus interest @ 18% p.a.
Answer:
Books of Gajanan |
|||||
Journal Entry |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2012 |
|
|
|
|
|
Oct.03 |
Navnath |
Dr. |
|
16,200 |
|
A. |
To Bankatlal |
|
|
|
16,200 |
|
(Navanth’s acceptance endorsed ro Bankatlal was dishonoured and noting charges incurred) |
|
|
|
|
|
|
|
|
|
|
Oct.09 |
Bill Sent for Collection A/c |
Dr. |
|
15,500 |
|
B. |
To Bills Receivable A/c |
|
|
|
15,500 |
|
(Bill sent to bank for collection) |
|
|
|
|
|
|
|
|
|
|
Oct.11 |
Kartik |
Dr. |
|
4,500 |
|
C. |
To Sales A/c |
|
|
|
4,500 |
|
(Sold goods to Kartik) |
|
|
|
|
|
|
|
|
|
|
|
Bills Receivable A/c |
Dr. |
|
4,500 |
|
|
To Kartik |
|
|
|
4,500 |
|
(Bill drawn and accepted) |
|
|
|
|
|
|
|
|
|
|
|
Milind |
Dr. |
|
4,500 |
|
|
To Bills Receivable A/c |
|
|
|
4,500 |
|
(Bill endorsed to Milind for amount due) |
|
|
|
|
|
|
|
|
|
|
Oct.20 |
Cash/Bank A/c |
Dr. |
|
2,400 |
|
D. |
Bad-Debts A/c |
Dr. |
|
3,600 |
|
|
To Joyti |
|
|
|
6,000 |
|
(Joyti became insolvent and 40% of the amount recovered from his private estate) |
|
|
|
|
|
|
|
|
|
|
Oct.21 |
Bills Payable A/c |
Dr. |
|
7,500 |
|
E. |
To Pandurang |
|
|
|
7,500 |
|
(Bill cancelled for renewal) |
|
|
|
|
|
|
|
|
|
|
|
Interest A/c |
Dr. |
|
120 |
|
|
To Pandurang |
|
|
|
120 |
|
(Interest charges due on Rs 4,000@ 18% per annum for 2 months) |
|
|
|
|
|
|
|
|
|
|
|
Pandurang |
Dr. |
|
7,620 |
|
|
To Bills Payable A/c |
|
|
|
4,120 |
|
To Bank A/c |
|
|
|
3,500 |
|
(Cheque paid for Rs 3,500 and new bill has been accepted including interest charges) |
|
|
|
|
|
|
|
|
|
|
View NCERT Solutions for all chapters of Class 15