Question No 09 Chapter No 15 - USHA Publication 11 Class

Question No 09 Chapter No 15

Discounting of Bill

9. Jimmy sold goods to Johny for Rs 2,000 on credit on 18th July 2017 and received from him a bill of 3 months for Rs 2,100 which includes Rs 100 for interest for credit period of sale. Give journal entries in the books of both parties.
(i)When the bill is discounted immediately @6% p.a.
(ii) When the bill is discounted immediately at 9% p.a.

The solution of Question No 09 Chapter No 15: -

In the books of Jimmy(Drawer)

Date	Particulars		L.F.	Debit	Credit
2018
July.18	Johny A/c	Dr.		2,100
	To Sale A/c				2,000
	To Interest A/c				100
	(Being goods sold on credit)
July.18	Bills Receivable A/c	Dr.		2,100
	To  Johny A/c				2,100
	(Being acceptance received for 3 months)
(i)	Bank A/c	Dr.		2,068.50
	Discount A/c	Dr.		31.50
	To Bills Receivable A/c				2,100
	(Being bill discounted @6% p.a.)
(ii)	Bank A/c	Dr.		2,052.75
	Discount A/c	Dr.		47.25
	To Bills Receivable A/c				2,100
	(Being bill discounted @9% p.a.)

 

In the books of Johny(Drawee)

Date	Particulars		L.F.	Debit	Credit
2018
July.1	Purchase A/c	Dr.		2,000
	Interest A/c	Dr.		100
	To Jimmy A/c				2,100
	(Being purchases goods on credit)
July.1	Ram A/c	Dr.		2,100
	To Bills Payable A/c				2,100
	(Being acceptance given for 60 days)
Oct. 4	Bills Payable A/c	Dr.		2,100
	To Cash A/c				2,100
	(Being bill paid on maturity date )

Note: No entry are passed in the book of drawee on discounting of bill

 

 

https://tutorstips.com/bills-receivable/

 

https://tutorstips.com/bills-payable/

 

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Usha Publication - Elements of Book-Keeping PSEB (Class 11) - Solution

Chapter No. 1 - Introduction

Chapter No. 2 - Theory Base of Accounting 

Chapter No. 3 - Origin of Transactions

Chapter No. 4 - Vouchers and transactions

Chapter No. 5 - Journal

Chapter No. 6 - Accounting for Goods and Services Tax(GST)

Chapter No. 7 - Ledger

Chapter No. 8 - Cash Book

Chapter No. 9 - Other Subsidiary Books

Chapter No. 10 - Journal Proper

Chapter No. 11 - Trial Balance

Chapter No. 12 - Bank Reconciliation Statement

Chapter No. 13 - Depreciation

Chapter No. 14 - Provisions and Reserves 

Chapter No. 15 - Bills of Exchange

Chapter No. 16 - Rectification of Errors 

Chapter No. 17 - Financial Statements - (Without Adjustments)

Chapter No. 18 - Financial Statements - (With Adjustments)