Question No 12 Chapter No 16 - T.S. Grewal 11 Class

Question No 12 Chapter No 16

Different Uses of Bills Receivable

12. X draws on Y a bill for 4,000 which was duly accepted by Y. Y meets the bill on its due date. Show what entries would be passed in the books of X under each of the following circumstances:
a If X retains the bill till due date.
b If X discounts the same with his banker paying 100 for a discount.
c If X endorses the same to his creditor Z in full settlement of his debt of 4,080.
d If X sends the bill to his banker for collection the next day.

The solution of Question No 12 Chapter No 16: - 

Books of X

Date	Particulars		L.F.	Debit	Credit
	Bills Receivable A/c	Dr.		4,000
	To Y A/c				4,000
	(Being y’s accepted was received )
	Cash A/c	Dr.		4,000
	To Bills Receivable A/c				4,000
	(Being cash received on bills receivable)

 

Books of X

Date	Particulars		L.F.	Debit	Credit
	Bills Receivable A/c	Dr.		4,000
	To Y A/c				4,000
	(Being y’s accepted was received )
	Bank A/c	Dr.		3,900
	Discount Charges A/c	Dr.		100
	To Bank A/c				4,000
	(Being cash received on bills receivable)

 

 

Books of X

Date	Particulars		L.F.	Debit	Credit
	Bills Receivable A/c	Dr.		4,000
	To Y A/c				4,000
	(Being y’s accepted was received )
	Z A/c	Dr.		4,080
	To Discount Received A/c				80
	To Bills Receivable A/c				4,000
	(Being Y′s acceptance endorsed in favour of Z and discount allowed by Z is Rs 80)

 

Books of X

Date	Particulars		L.F.	Debit	Credit
	Bills Receivable A/c	Dr.		4,000
	To Y A/c				4,000
	(Being y’s accepted was received )
	Bills Receivable A/c	Dr.		4,000
	To Bills Receivable A/c				4,000
	(Being Y′s acceptance sent to the bank for collection)
	Bank A/c			4,000
	To Bills Sent for Collection A/c				4,000
	(Being Y′s acceptance to maturity)

 

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Also, Check out the solved question of previous Chapters: -

• • Chapter No. 1 – Introduction to Accounting
  • Chapter No. 2 – Basic Accounting Terms
  • Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
  • Chapter No. 4 – Bases of Accounting
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book
  • Chapter No. 11 – Special Purpose Books II – Other Books
  • Chapter No. 12 – Bank Reconciliation Statement
  • Chapter No. 13 – Trial Balance
  • Chapter No. 14 – Depreciation
  • Chapter No. 15 – Provisions and Reserves
  • Chapter No. 16 – Accounting for Bills of Exchange
  • Chapter No. 17 – Rectification of Errors
  • Chapter No. 18 – Financial Statements of Sole Proprietorship
  • Chapter No. 19 – Adjustments in preparation of Financial Statements
  • Chapter No. 20 – Accounts from incomplete Records – Single Entry System
  • Chapter No. 21 – Computers in Accounting
  • Chapter No. 22 – Accounting Software – Tally
  • Chapter No. 5 - Accounting Equation
  • Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 8 - Journal
  • Chapter No. 9 - Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book

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