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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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17. On 1st April,2019 Y accepts a bill drawn by X for two months for ₹ 5,000, in payment of debt. On the due date the bill is dishonoured and X had to pay ₹ 50 as noting charges, on 4th June 2019, Y requested X to draw a new bill for the amount due. X agrees to draw a new bill for 73 days but he charged 18% p.a. interest in cash. This bill is duly met on its maturity.
Pass journal entries in the books of both the parties.
Journal for Mr. ‘X’ (Drawer)
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| 2019 | |||||
| Apr.1 | Bill receivable A/c | Dr. | 5,000 | ||
| To Y’s A/c | 5,000 | ||||
| (Being the bill two months drawn and accepted) | |||||
| June 4 | Y’s A/c | Dr. | 5,050 | ||
| To Bill receivable A/c | 5,000 | ||||
| To Cash A/c | 50 | ||||
| (Being the bill dishonoured and ₹ 50 paid as noting charges) | |||||
| June 4 | Bill receivable A/c | Dr. | 5,050 | ||
| To Y’s A/c | 5,050 | ||||
| (Being a new bill for 73 days drawn and accepted) | |||||
| June 4 | Cash A/c | Dr. | 182 | ||
| To Interest A/c | 182 | ||||
| (Being interest @ 18% p.a. received in cash) | |||||
| Aug.19 | Cash A/c | Dr. | 5,050 | ||
| To Bill receivable A/c | 5,050 | ||||
| (Being the bill met on due date) | |||||
Journal for Mr. ‘Y’ (Drawee)
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| 2019 | |||||
| Apr.1 | X’s A/c | Dr. | 5,000 | ||
| To Bill payable A/c | 5,000 | ||||
| (Being the bill 2 months acceptance and returned) | |||||
| June 4 | Bill payable A/c | Dr. | 5,000 | ||
| Noting charges A/c | 50 | ||||
| To X’s A/c | 5,050 | ||||
| (Being the bill dishonoured on due date and ₹ 50 as noting charges paid) | |||||
| June 4 | X’s A/c | Dr. | 5,050 | ||
| To Bill payable A/c | 5,050 | ||||
| (Being a new bill for 73 days accepted and returned) | |||||
| June 4 | Interest A/c | Dr. | 182 | ||
| To Cash A/c | 182 | ||||
| (Being interest @18% p.a. for renewal of bill paid in cash) | |||||
| Aug.19 | Bills payable A/c | Dr. | 5,050 | ||
| To Cash A/c | 5,050 | ||||
| (Being the bill met on due date) | |||||
Read out the full article to know the meaning of Cash Book
Bill of exchange (BOE): Meaning and Examples
Also, Check out the same article in Hindi from the following link
Bill of exchange (BOE): Meaning and Examples
Also, Check out the solved question of all Chapters: –
Part-I
Students may choose only one part from the Part II and Part III
Part-II
Part-III
Check out T.S. Grewal +1 Book 2019 @ Oficial Website of Sultan Chand Publication
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.
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