Question No 42 Chapter No 16 - T.S. Grewal 11 Class

Question No 42  Chapter No 16

42. On 1st January 2008, A sold goods to B for 1,00,000 received 25,000 in cash and drew two bills, first 45,000 and second for 30,000 of two months each. Both bills were duly accepted by B. First bill was endorsed to C in settlement of his account of 45,000 and second bill was discounted from the bank at the rate of 12% p.a. On the due date of these bills, both bills were dishonoured, C has paid 100 and the bank has paid 80 as noting charges. Pass Journal entries in the books of A, B and C.

The solution of Question No 42 Chapter No 16:-

Books of A

Date	Particulars		L.F.	Debit	Credit
2008
Jan.01	B A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Being Goods were sold to B)
Jan.01	Cash A/c	Dr.		25,000
	Bills Receivable A/c Bill no. 1	Dr.		45,000
	Bills Receivable A/c Bill no. 2	Dr.		30,000
	To Y A/c				1,00,000
	(Being Cash and acceptances were received from B )
Jan.01	C A/c	Dr.		45,000
	To Bills Receivable A/c Bill no. 1				45,000
	(Being Bill endorsed in favour of C)
Jan.01	Bank A/c	Dr.		29,400
	Discount Charges A/c	Dr.		600
	To Bills Receivable Bill no. 2				30,000
	(Being Bill no. 2 discounted with the bank at 12%)
	Working Note: Discount Charges = 30,000 × 12% × 2/12
Mar.04	B A/c	Dr.		45,100
	To C A/c				45,100
	(Being B′s acceptance which had endorsed to C was dishonoured and C paid Rs 100 as noting charges)
Mar.04	B A/c	Dr.		25,000
	To Bank A/c				25,000
	(Being B′s acceptance which had discounted with the bank was dishonoured and the bank paid Rs80 as noting charges)

 

Books of B

Date	Particulars		L.F.	Debit	Credit
2008
Jan.01	Purchases A/c	Dr.		1,00,000
	To A				1,00,000
	(Being Goods purchased from A)
Jan.01	A A/c	Dr.		1,00,000
	To Cash A/c				25,000
	To Bills Payable A/c 1				45,000
	To Bills Payable A/c 2				30,000
	(Being Cash and bills given to A)
Mar.04	Bills Payable A/c 1	Dr.		45,000
	Bills Payable A/c 2	Dr.		30,000
	Noting Charges A/c	Dr.		180
	To A  A/c				75,180
	(Being Bills dishonored )

 

 

Books of C

Date	Particulars		L.F.	Debit	Credit
2008
Jan.01	Bills Receivable A/c 1	Dr.		45,000
	To A				45,000
	(Being Bill received from A )
Mar. 04	A A/c	Dr.		45,100
	To Bills Receivable A/c 1				45,000
	To Cash A/c				100
	(Being Bill dishonored on due date)

 

 

 

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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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