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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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18. On 1st January, 2020 Mohan sold goods worth ₹ 6,000 to Sohan. On the same day Mohan gave his 2 months acceptance for the same. Mohan discounted the bill on 4th January, with his bank @ 6% p.a. before the due date, Sohan made a request to Mohan for its renewal for a further period of 3 months. Mohan agreed on the condition that new bill should include interest @ 10%p.a. the new bill should include interest @ 10% P.a. the bill was paid on the due date.
Journal for Mr. ‘Mohan’ (Drawer)
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| 2020 | |||||
| Jan. 1 | Sohan’s A/c | Dr. | 6,000 | ||
| To Sales A/c | 6,000 | ||||
| (Being goods sold on credit) | |||||
| Jan. 1 | Bill receivable A/c | Dr. | 6,000 | ||
| To Sohan A/c | 6,000 | ||||
| (Being the bill two months drawn and accepted) | |||||
| Jan. 1 | Bank A/c | Dr. | 5,940 | ||
| Discount A/c | 60 | ||||
| To Bill receivable A/c | 6,000 | ||||
| (Being the bill discounted from bank @6% p.a.) | |||||
| Mar.7 | Sohan A/c | Dr. | 6,000 | ||
| To Bank A/c | 6,000 | ||||
| (Being the bill dishonoured on due date) | |||||
| Mar.7 | Bill receivable A/c | 6,150 | |||
| To Sohan A/c | 6,000 | ||||
| To Interest A/c | 150 | ||||
| (Being a new bill for 3 months with @ 10% p.a. include in it drawn and accepted) | |||||
| June 10 | Cash A/c | Dr. | 6,150 | ||
| To Bill receivable A/c | 6,150 | ||||
| (Being the bill met on due date) | |||||
Journal for Mr. ‘Sohan’ (Drawee)
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| 2020 | |||||
| Jan.1 | Purchases A/c | Dr. | 6,000 | ||
| To Mohan A/c | 6,000 | ||||
| (Being goods to purchased on credit) | |||||
| Jan.1 | Mohan A/c | Dr. | 6,000 | ||
| To Bill payable A/c | 6,000 | ||||
| (Being the bill 2 months acceptance and returned) | |||||
| Mar.7 | Bill payable A/c | Dr. | 6,000 | ||
| To Mohan A/c | 6,000 | ||||
| (Being the bill cancelled on request) | |||||
| Mar.7 | Mohan A/c | Dr. | 6,000 | ||
| Interest A/c | Dr. | 150 | |||
| To Bill payable A/c | 6,150 | ||||
| (Being a new bill for 3 months with interest @ 10% p.a. include in it accepted and returned) | |||||
| June 10 | Bills payable A/c | Dr. | 6,150 | ||
| To Cash A/c | 6,150 | ||||
| (Being the bill met on maturity) | |||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 18 Chapter 14 – Class 11 Unimax", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 14 - Bills of Exchange - Unimax.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 18 Chapter 14 – Class 11 Unimax" instantly.
