Question No 20 Chapter No 14 – Class 11 Unimax

Question No 20 Chapter No 14 – Class 11 Unimax

20. Ram owes ₹ 2,000 to Mohan on 1st January 2020. On this date, he accepted a draft for the amount for 3 months. Mohan got the bill discounted at his bank @ 6%. On the due date, the bill was dishonored noting charges ₹ 20. Ram agreed to pay ₹ 520 immediately and accept another bill for the remaining amount for 3 months together with interest at 9% p.a. this bill was met on the due date. Give journal entries in the books of the parties.

The solution of Question No 20 Chapter No 14 - UNIMAX Class 11

Journal for Mr. ‘Mohan’ (Drawer)

Date	Particulars		L.F.	Debit	Credit
2020
Jan. 1	Bill Receivable A/c	Dr.		2,000
	To Ram’s A/c				2,000
	(Being the bill 3 months drawn and accepted)
Jan. 1	Bank A/c	Dr.		1,970
	Discount A/c	Dr.		30
	To Bill receivable A/c				2,000
	(Being the bill dishonoured from @ 16% p.a.)
Apr. 4	Ram’s A/c	Dr.		2,020
	To Bill receivable A/c				2,000
	To Cash A/c				20
	(Being the bill dishonoured and ₹ 20 paid as noting charges)
Apr. 4	Cash A/c	Dr.		520
	To Ram A/c				520
	(Being cash received from Mr. Ram)
Apr. 4	Bill receivable A/c			1,534
	To Ram’s A/c				1,500
	To Interest A/c				34
	(Being a new bill for 3 months with interest @ 9% p.a. drawn and accepted)
July 7	Cash A/c	Dr.		1,534
	To Bill receivable A/c				1,534
	(Being the bill met on due date)

 

Journal for Mr. ‘Ram’ (Drawee)

Date	Particulars		L.F.	Debit	Credit
2020
Jan. 1	Mohan A/c	Dr.		2,000
	To Bill payable A/c				2,000
	(Being bill for 3 months accepted and returned)
Apr.4	Bill payable A/c	Dr.		2,000
	Nothing charges A/c	Dr.		20
	To Mohan A/c				2,020
	(Being the bill dishonoured on due date)
Apr.4	Mohan A/c	Dr.		520
	To Cash A/c				520
	(Being cash paid to Mohan)
Apr.4	Mohan A/c	Dr.		1,500
	Interest A/c	Dr.		34
	To Bill receivable A/c				1,530
	(Being a new bill for 3 months with interest @ 9% p.a. accepted and returned)
July 7	Bills payable A/c	Dr.		1,534
	To Cash A/c				1,534
	(Being own acceptance 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: –

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

• Chapter No. 1 - Introduction of Accounting
• Chapter No. 2 - Theory Base of Accounting
• Chapter No. 3 - Vouchers and Transactions
• Chapter No. 4 - Journal
• Chapter No. 5 - Goods and Services Tax (GST): An Introduction
• Chapter No. 6 - Ledger
• Chapter No. 7 - Special Purpose Book -  Cash Book
• Chapter No. 8 - Other Subsidiary Books 
• Chapter No. 9 - Trial Balance 
• Chapter No. 10 - Rectification of Errors
• Chapter No. 11 - Depreciation
• Chapter No. 12 - Provision and Reserves
• Chapter No. 13 - Bank Reconciliation Statement
• Chapter No. 14 - Bills of Exchange 

Students may choose only one part from the Part II and Part III

Part-II

• Chapter No. 15 - Financial Statements (Without Adjustments)
• Chapter No. 16 - Financial Statements (With Adjustments)
• Chapter No. 17 - Accounts from Incomplete Records -  Single Entry System

Part-III

• Chapter No. 18 - Introduction to Computers and Accounting information System
• Chapter No. 19 - Computerised Accounting
• Chapter No. 20 - Accounting Software: Tally 
• Chapter No. 21 - Data Base System
• Chapter No. 22 - Concept of Entity and Relationship 

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