Question No 34 Chapter No 16 - T.S. Grewal 11 Class

Books of Merchant & Co.

Date	Particulars		L.F.	Debit	Credit
2017
May 01	AB & Co	Dr.		500
	To Sales A/c				500
	(Being Goods were sold to AB & Co)
May 01	Bills Receivable A/c	Dr.		500
	To AB & Co				500
	(Being AB & Co’s acceptance was received)
Aug.04	AB & Co	Dr.		500
	To Bills Receivable A/c				500
	(Being AB & Co’s acceptance was cancelled)
Aug.04	Cash A/c	Dr.		200
	To AB & Co				200
	(Being Cash received from AB & Co )
Aug.04	AB & Co	Dr.		4.50
	To Interest A/c				4.50
	(Being Interest-due from AB & Co at 6% p.a. for 3 months)
	Working Note: 300 × 6% × 3/12 = Rs 4.50
Aug.04	Bills Receivable A/c	Dr.		304.50
	To AB & Co				304.50
	(Being AB & Co’s acceptance was received including the interest for 3 months)
Nov.07	Cash A/c	Dr.		304.50
	To Bills Receivable A/c				304.50
	(Being Payment received on maturity the bill)

 

 

Books of AB & Co

Date	Particulars		L.F.	Debit	Credit
2017
May 01	Purchases A/c	Dr.		500
	To Merchant & Co				500
	(Being goods were bought from Merchant & Co)
May 01	Merchant & Co	Dr.		500
	To Bills Payable A/c				500
	(Being Bill drawn by Merchant & Co was accepted)
Aug.04	Bills Payable A/c	Dr.		500
	To Merchant & Co				500
	(Being Bill got cancelled)
Aug.04	Merchant & Co	Dr.		200
	To Cash A/c				200
	(Being Cash received from AB & Co )
Aug.04	Interest A/c	Dr.		4.50
	To Merchant & Co				4.50
	(Being Interest-due from AB & Co at 6% p.a. for 3 months)
	Working Note: 300 × 6% × 3/12 = Rs 4.50
Aug.04	Merchant & Co	Dr.		304.50
	To Bill Payable A/c				304.50
	(Being new bill drawn by Merchant & Co was accepted)
Nov.07	Bills Payable A/c	Dr.		304.50
	To Cash A/c				304.50
	(Being Payment received on maturity the bill)

 

 

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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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