Question No 44 Chapter No 15 – USHA Publication 11 Class

Question No 44 Chapter No 15

Question No 44 Chapter No 15

Renewal of Bill

44. On 15th April 2019. A agrees t Draw on B who is his debtor for Rs 2,400 three bills of exchange No 1 for Rs 700 at one months ; No 2 for Rs 800 at 2 months and No.3 for RS 900 at three months. B accepts and returns these bills to A.
A endorses on 20th April the first bill to his creditor C in full settlement of Account of Rs 710; discounts on 22nd April the second bill at the bank for RS 792 and retains the third bill till maturity.
The first bill is met at Maturity, the second bill is dishonoured on the due date Rs 10 being p[aid for noting charges. A charges B Rsc15 for interest and drew on him a fourth bill for the Rs 825 at three months. The third and fourth bill are duly honoured on the due date
Give journal entries to record these traction in there book of A, B and C

The solution of Question No 44 Chapter No 15: –

 

In the book of A (Drawee)
Date   Particulars
L.F. Debit Credit
2019          
Apr.15 Bill Receivable A/c Dr.   2,400  
  To B A/c       2,400
  (Being receipt of three-bill received.)        
           
Apr.20 C A/c Dr.   710  
  To Bill Receivable A/c       700
  To Discount A/c       10
  (Being bill endorsed to C received a discount.)        
           
Apr.22 Bank A/c Dr.   792  
  Discount  A/c Dr.   8  
  To Bill Receivable A/c       800
  (Being bill discounted from Bank.)        
           
Jun.18 Bill Receivable A/c Dr.   825  
  To B A/c       810
  To Interest A/c       15
  (Being Recep received with interest .)        
           
Jun.18 Cash A/c Dr.   900  
  To Bill Receivable A/c       900
  (Being bill discounted from Bank.)        
           
Sep.21 Cash A/c Dr.   825  
  To Bill Receivable A/c       825
  (Being bill discounted from Bank.)        
         

 

In the book of B (Drawer)
Date   Particulars
L.F. Debit Credit
2019          
Apr.15 A A/c Dr.   2,400  
  To Bill Payable A/c       2,400
  (Being acceptance of two bill payable after 3 months .)        
           
May.18 Bill Payable A/c Dr.   700  
  To Cash A/c       700
  (Being payment made of one of the bills.)        
           
Jun.18 Bill Payable A/c Dr.   800  
  Noting Charges A/c Dr.   10  
  To Kapoor A/c       810
  (Being dishonor of bill presented by a bank on the due date.)        
           
Oct.1 Interest A/c Dr.   15  
  To Cash A/c       15
  (Being the amount of interest due to A.)        
           
Jun.18 A A/c Dr.   825  
  To Bill Payable A/c       825
  (Being acceptance of two bills payable after 3 months .)        
           
Jul.18 Bill Payable A/c Dr.   900  
  To Cash A/c       900
  (Being payment made of one of the bill.)        
           
Sep.21 Bill Payable A/c Dr.   825  
  To Cash A/c       825
  (Being payment made of one of the bill.)        
         

 

Journal of C (Endorsee)
Date   Particulars
L.F. Debit Credit
2019          
Apr.20 Bill Receivable A/c Dr.   700  
  Discount A/c Dr.   10  
  To Interest A/c       710
  (Being receipt of an acceptance from A in full settlement of the amount due on him.)        
           
May.18 Cash A/c Dr.   710  
  To Bill Receivable A/c       710
  (Being receipt of the amount received .)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 43 Chapter No 15 – USHA Publication 11 Class

Question No 43 Chapter No 15

Question No 43 Chapter No 15

Renewal of Bill

43. On 15th June,2018 Saksena Bros. owed Kapoor &Co RS 15,000. the latter drew upon the former two bills-one for Rs 10,000 payable two months after date and the other for Rs 5,000 payable thee months after date. Kapoor & Co. discounted the first bill at 6 percent per annum and endorsed the second bill in factor of Sarabjit & Co. the bill was duly met duly met on maturity but the second bill was dishonoured and Sarabjit & Co. paid RS 45 as noting charges. On 1st October Saksena Bros. cleared their account by Paying Rs 5,060 which also included Rs 15 as interest
Write up the journal entries in the book of Kapoor & Co. and Saksena Bros.

The solution of Question No 43 Chapter No 15: –

 

In the book of Kapoor & Co (Drawee)
Date   Particulars
L.F. Debit Credit
2018          
Jun.15 Bill Receivable A/c Dr.   15,000  
  To Saksena Bros. A/c       15,000
  (Being receipt of two bill received payable after 3 months.)        
           
Jun.15 Bank A/c Dr.   9,900  
  Discount A/c Dr.   100  
  To Bill Receivable A/c       10,000
  (Being the amount receivable on discounting of the first bill.)        
           
Jun.15 Sarabjit & Co A/c Dr.   5,000  
  To Bills Receivable A/c       5,000
  (Being bill endorsed to Sarabjit & Co.)        
           
Sep.4 Saksena Bros. A/c Dr.   5,045  
  To Sarabjit & Co A/c       5,045
  (Being dishonor of the discounted bill nothing charges paid .)        
           
Oct.1 Cash A/c Dr.   5,060  
  To Saksena A/c       5,045
  To Interest A/c       15
  (Being amount receive from Saksena including interest .)        
         

 

In the book of Saksena Bros (Drawer)
Date   Particulars
L.F. Debit Credit
2018          
Jun.15 Kapoor A/c Dr.   15,000  
  To Bill Payable A/c       15,000
  (Being acceptance of two bill payable after 3 months .)        
           
Aug.18 Bill Payable A/c Dr.   10,000  
  To Cash A/c       10,000
  (Being payment made of one of the bill.)        
           
Sep.18 Bill Payable A/c Dr.   5,000  
  Noting Charges A/c Dr.   45  
  To Kapoor A/c       5,045
  (Being dishonor of bill presented by bank on the due date.)        
           
Oct.1 Kapoor A/c Dr.   5,045  
  Interest A/c Dr.   15  
  To Cash A/c       5,060
  (Being payment of the amount dur to Kapoor & Co. including interest.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 42 Chapter No 15 – USHA Publication 11 Class

Question No 42 Chapter No 15

Question No 42 Chapter No 15

Renewal of Bill

42.Suresh owed money to Brijesh and hence accepted two bills each for Rs 5,000 for the three months duration drawn on him by the latter on January 1,2019. Brijesh discounted one of the bills with the bank for the net proceeds of Rs 4,800 and endorsed the other in the favor of Mukesh to whom he owed the like amount on the same date. Suresh paid the bill held by Mukesh on the due date but failed to meet the bill presented by the bank debited Brijesh’s account on April 4,2019 inclusive of bank charges of Rs 50. Suresh paid the amount inclusive of Charges to Brijesh on April 10,2019
Show journal entries in respect of the above in the book of Suresh and Brijesh

The solution of Question No 42 Chapter No 15: –

 

In the book of Brijesh (Drawee)
Date   Particulars
L.F. Debit Credit
2018          
Jan.1 Bill Receivable A/c Dr.   10,000  
  To Suresh A/c       10,000
  (Being receipt of two acceptance of Rs 5,000 each in settlement of amount due.)        
           
Jan.1 Bank A/c Dr.   4,800  
  Discount A/c Dr.   200  
  To Bill Receivable A/c       5,000
  (Being the amount receivable on discounting of the first bill.)        
           
Jan.1 Mukesh A/c Dr.   5,000  
  To Bills Receivable A/c       5,000
  (Being bill endorsed to Mukesh.)        
           
Apr.4 Suresh A/c Dr.   5,050  
  To Bank A/c       5,050
  (Being dishonor of the discounted bill nothing charges paid .)        
           
Apr.10 Cash A/c Dr.   5,050  
  To Suresh A/c       5,050
  (Being amount received in Settlement of debt.)        
         

 

In the book of Suresh (Drawer)
Date   Particulars
L.F. Debit Credit
2018          
Jan.1 Brijesh A/c Dr.   10,000  
  To Bill Payable A/c       10,000
  (Being acceptance of two bill of Rs 5,000 each .)        
           
Apr.4 Bill Payable A/c Dr.   5,000  
  To Cash A/c       5,000
  (Being receipt of an acceptance for one month.)        
           
Apr.4 Bill Payable A/c Dr.   5,000  
  Noting Charges A/c Dr.   50  
  To Brijesh A/c       5,050
  (Being dishonour of bill presented by a bank on the due date.)        
           
Apr.10 Brijesh A/c Dr.   5,050  
  To Cash A/c       5,050
  (Being amount paid in Settlement of debt.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 41 Chapter No 15 – USHA Publication 11 Class

Question No 41 Chapter No 15

Question No 41 Chapter No 15

Renewal of Bill

41. Journalise the following transaction
(a)Retired our acceptance in favor of Ram for Rs 5,000 by cheque Rs 2,000 and a new bill the balance at two months with Rs 125 as interest
(b)Our acceptance to Karan for Rs 9,000 renewed for three months with interest at 6% p.a.
(c)Archana on whom we had drawn a bill for Rs 2,500 has become insolvent and 40% has been received in final payment
(d)Raghu’s acceptance in our favor has been dishonoured for Rs 2,000. he pays Rs 500 in cash and accepts a new bill for the balance plus interest at 8% p.a at 3 months

The solution of Question No 41 Chapter No 15: –

 

Journal
Date   Particulars
L.F. Debit Credit
           
(a) Bill Payable A/c Dr.   5,000  
  To Ram A/c       5,000
  (Being cancellation of the bill.)        
           
  Ram A/c Dr.   2,000  
  To Bank A/c       2,000
  (Being payment received from Ram.)        
           
  Ram A/c Dr.   3,125  
  To Bill Payable A/c       3,000
  To Interest A/c       125
  (Being new bill for the balance of the amount.)        
           
(b) Bill Payable A/c Dr.   9,000  
  To Karan A/c       9,000
  (Being the cancellation of old bill.)        
           
  Interest A/c Dr.   135  
  To Karan A/c       135
  (Being interest paid in cash.)        
           
  Karam A/c Dr.   9,135  
  To Bills Payable A/c       9,135
  (Being acceptance of the new bill for amount with interest.)        
           
(C) P A/c Dr.   2,500  
  To Bill Receivable A/c       2,500
  (Being the cancellation of old bill.)        
           
  Cash A/c Dr.   1,000  
  Bad Debts A/c Dr.   1,500  
  To P A/c       2,500
  (Being amount received from the estate of P balance written off bad debts.)        
           
(d) Raghu A/c Dr.   2,000  
  To Bill Receivable A/c       2,000
  (Being the cancellation of old bill.)        
           
  Cash A/c Dr.   500  
  To Raghu A/c       500
  (Being amount received from Raghu in part of Payment.)        
           
  Rahu A/c Dr.   30  
  To Interest A/c       30
  (Being interest on Rs 1,500 @ 8% for 3 months.)        
           
  Bill Receivable A/c Dr.   1,530  
  To Rahu A/c       1,530
  (Being receipt of new bill for the balancing amount including interest.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 40 Chapter No 15 – USHA Publication 11 Class

Question No 40 Chapter No 15

Question No 40 Chapter No 15

Renewal of Bill

40. Q drew a bill of exchange on P for Rs 4,000 on 1st May 2018 for 3 months. P returned the bill to Q after acceptance it. Q discounted the bill at his bank for Rs 3,900. Just before the due date, P approached Q for the renewal of the bill. Q agreed on condition that Rs 1,000 plus interest on the balance at 6% per annum for 3 months be paid in cash immediately and a new bill for 3 months be drawn for the remaining balance. These condition were carried rupee in full settlement
Give journal entries in the book of P and Q

The solution of Question No 40 Chapter No 15: –

 

In the book of P (Drawee)
Date   Particulars
L.F. Debit Credit
2018          
May.1 Q A/c Dr.   4,000  
  To Bill payable A/c       4,000
  (Being acceptance given for three months.)        
           
Aug.1 Bill payable A/c Dr.   4,000  
  To Q A/c       4,000
  (Being cancellation of the old bill.)        
           
Aug.4 Q A/c Dr.   1,000  
  Interest A/c Dr.   45  
  To Cash A/c       1,045
  (Being part of payment made along with the interest.)        
           
Aug.4 Q A/c Dr.   3,000  
  To Bill Payable A/c       3,000
  (Being new bill acceptance for the balance for 3 months.)        
           
Nov.7 Bill Payable A/c Dr.   3,000  
  To Q A/c       3,000
  (Being bill dishonoured on Maturity.)        
           
Oct.7 Q A/c Dr.   3,000  
  To Cash A/c       1,200
  To Deficiency A/c       1,800
  (Being payment of a dividend of 40 paise full satisfaction.)        
         

 

In the book of Q (Drawer)
Date   Particulars
L.F. Debit Credit
2018          
May.1 Bill Receivable A/c Dr.   4,000  
  To P A/c       4,000
  (Being receipt acceptance given for three months.)        
           
May.1 Bank A/c Dr.   3,900  
  Discount A/c Dr.   100  
  To Bill Receivable A/c       4,000
  (Being receipt of an acceptance for one month.)        
           
Aug.4 Cash A/c Dr.   1,000  
  To P A/c       1,000
  To Interest A/c       45
  (Being part payment received with interest.)        
           
Aug.4 Bill Receivable A/c Dr.   3,000  
  To P A/c       3,000
  (Being receipt of new bill for the balance amount for 3 months.)        
           
Nov.7 P A/c Dr.   3,000  
  To Bill Receivable A/c       3,000
  (Being dishonor of the bill due to P’s insolvency.)        
           
Nov.7 Cash A/c Dr.   1,200  
  Bad Debts A/c Dr.   1,800  
  To P A/c       3,000
  (Being the receipt of a dividend of 40 paise in the rupee in the full satisfaction of our claim against P for Rs 3,000.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 39 Chapter No 15 – USHA Publication 11 Class

Question No 39 Chapter No 15

Question No 39 Chapter No 15

Renewal of Bill

39. Mahesh sold goods of the value of Rs 2,000 to Naresh taking a bill for 3 months dated1st July,2017. on 4th August Mahesh discounted the bill at 6% p.a. with his bankers. At maturity, the bill was returned by the bankers dishonoured with Rs 50 as expenses. Naresh paid Rs 500 and the expenses ad gave Mahesh another bill at three months for Rs 1,500 and 8% p.a. interest in cash but before maturity, he became insolvent and ultimately paid his creditors 80 paise in rupee.
Pass journal entries in the book of Mahesh

The solution of Question No 39 Chapter No 15: –

In the book of Mahesh (Drawer)
Date   Particulars
L.F. Debit Credit
2017          
Jul.1 Naresh A/c Dr.   2,000  
  To Sale A/c       2,000
  (Being sold goods on credit .)        
           
Jul.1 Bill Receivable A/c Dr.   2,000  
  To Naresh A/c       2,000
  (Being receipt of an acceptance for 3 months.)        
           
Aug.4 Bank A/c Dr.   1,980  
  Discount A/c Dr.   20  
  To Bill Receivable A/c       2,000
  To Bill Receivable A/c        
           
Oct.4 Naresh A/c Dr.   2,050  
  To Bank A/c       2,050
  (Being bill dishonoured and expenses paid by bank.)        
           
Oct.4 Cash A/c Dr.   550  
  To Naresh A/c       550
  (Being cash received as part payment .)        
           
Oct.4 Naresh A/c Dr.   30  
  To Interest A/c       30
  (Being interest charges on Rs 1,500fro 3 months @8%.)        
           
Oct.4 Bill Receivable A/c Dr.   1,530  
  To Naresh A/c       1,530
  (Being new bill received from Naresh for the balance amount plus interest.)        
2018          
Jan.7 Naresh A/c Dr.   1,530  
  To Bill Receivable A/c       1,530
  (Being bill dishonoured on maturity due to insolvency.)        
           
Jan.7 Cash A/c Dr.   1,224  
  Bad Debts A/c Dr.   306  
  To Naresh A/c       1,530
  (Being receipt of an acceptance for one months.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 38 Chapter No 15 – USHA Publication 11 Class

Question No 38 Chapter No 15

Question No 38 Chapter No 15

Renewal of Bill

38. B sends his promissory note for 3 months to C for Rs 6,000 on May 1,2018. C gets it discounted with his bankers @6 percent per annum. On the due date, the bill is dishonoured, the bank paying Rs 100 as noting charges. C agreed to accept Rs 2,250 in cash (Rs 250 for nothing charges and interest) and another promissory note for Rs 4,000 for 2 months. On the due date, B approaches C again and asks for renewal of the bill for a further period of 3 months. C egress to the request provided B pays Rs 200 as interest in cash. The last bill is paid o Maturity
Draft journal entries in the book of B and C.

The solution of Question No 38 Chapter No 15: –

 

In the book of B (Drawee)
Date   Particulars
L.F. Debit Credit
2018          
May.1 C A/c Dr.   6,000  
  To Bill payable A/c       6,000
  (Being goods purchased on credit .)        
           
Aug.4 Bill payable A/c Dr.   6,000  
  Nothing charges A/c Dr.   100  
  To Y A/c       6,100
  (Being cancellation of the old bill.)        
           
Aug.4 C A/c Dr.   2,100  
  Interest A/c Dr.   150  
  To Bill Payable A/c       2,250
  (Being payment of interest and part payment of the amount due to C.)        
           
Aug.4 C A/c Dr.   4,000  
  To Bill Payable A/c       4,000
  (Being a new bill accepted in favour of Bimal including interest.)        
           
Oct.7 Bill Payable A/c Dr.   4,000  
  To C A/c       4,000
  (Being payment of the bill on maturity.)        
           
Oct.7 Interest A/c Dr.   200  
  To Cash A/c       200
  (Being interest paid in cash .)        
           
Oct.7 C A/c Dr.   4,000  
  To Bill Payable A/c       4,000
  (Being acceptance of a fresh bill at 3 months.)        
2019          
Jan.10 Bill Payable A/c Dr.   4,000  
  To Cash A/c       4,000
  (Being payment of the bill on the due date .)        
         

 

In the book of C (Drawer)
Date   Particulars
L.F. Debit Credit
2018          
May.1 Bill Receivable A/c Dr.   6,000  
  To B A/c       6,000
  (Being receipt of an acceptance.)        
           
May.1 Bank A/c Dr.   5,910  
  Discount A/c Dr.   90  
  To Bill Receivable A/c       6,000
  (Being receipt of an acceptance for one month.)        
           
Aug.4 B A/c Dr.   6,100  
  To Bank A/c       6,100
  (Being cancellation of the bill.)        
           
Aug.4 Cash A/c Dr.   2,250  
  To B A/c       2,100
  To Interest A/c       150
  (Being receipt of interest and part payment of 1 amount due to B.)        
           
Aug.4 Bill Receivable A/c Dr.   4,000  
  To B A/c       4,000
  (Being receipt of an acceptance for the balance amount.)        
           
Oct.7 B A/c Dr.   4,000  
  To Bill Receivable A/c       4,000
  (Being cancellation of Bill.)        
           
Oct.7 Cash A/c Dr.   200  
  To Interest A/c       200
  (Being the receipt of interest.)        
           
Oct.7 Bill Receivable A/c Dr.   4,000  
  To B A/c       4,000
  (Being the receipt for a fresh acceptance at three months.)        
2019          
Jan.10 Cash A/c Dr.   4,000  
  To Bill Receivable A/c       4,000
  (Being the payment of bill received on maturity.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 37 Chapter No 15 – USHA Publication 11 Class

Question No 37 Chapter No 15

Question No 37 Chapter No 15

Renewal of Bill

37. X owed Y Rs 6,000 on 1st January 2018. on the same sate, Y drew upon X a bill for the amount for two months and X returned the bill duly acceptance. Y got the bill discounted at his bank at 6%. Before the bill was due for the payment, X told Y that he was not able to pay the full amount and requested Y to accept Rs 2,000 immediately and draw upon him another bill for the remaining amount for two months together with interest at 12% per annum. Y agreed. The second bill was duly met
Give journal entries in the books of X and Y

The solution of Question No 37 Chapter No 15: –

 

In the book of X (Drawee)
Date   Particulars
L.F. Debit Credit
2019          
Jan.1 Y A/c Dr.   6,000  
  To Bill payable A/c       6,000
  (Being goods purchased on credit .)        
           
Mar.4 Bill payable A/c Dr.   6,000  
  To Y A/c       6,000
  (Being cancellation of the old bill.)        
           
Mar.4 Y A/c Dr.   2,000  
  To Cash A/c       2,000
  (Being cash paid .)        
           
Mar.4 Y A/c Dr.   4,000  
  Interest A/c Dr.   40  
  To Bill Payable A/c       4,040
  (Being a new bill accepted in favour of Bimal including interest.)        
           
May.7 Bill Payable A/c Dr.   4,040  
  To Cash A/c       4,040
  (Being payment of the bill on maturity.)        
         

 

In the book of Y (Drawer)
Date   Particulars
L.F. Debit Credit
2019          
Jan.1 Bill Receivable A/c Dr.   6,000  
  To X A/c       6,000
  (Being receipt of an acceptance.)        
           
Jan.1 Bank A/c Dr.   5,950  
  Discount A/c Dr.   50  
  To Bill Receivable A/c       6,000
  (Being receipt of an acceptance for one months.)        
           
Mar.4 X A/c Dr.   6,000  
  To Bank A/c       6,000
  (Being cancellation of the bill.)        
           
Mar.4 Cash A/c Dr.   2,000  
  To X A/c       2,000
  (Being cash received from Amar.)        
           
Mar.4 Bill Receivable A/c Dr.   4,040  
  To X A/c       4,000
  To Interest A/c       40
  (Being receipt of the new bill for the amount with interest .)        
           
May.7 Cash A/c Dr.   4,040  
  To Bill Receivable A/c       4,040
  (Being the amount received on due date .)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 36 Chapter No 15 – USHA Publication 11 Class

Question No 36 Chapter No 15

Question No 36 Chapter No 15

Renewal of Bill

36. Amar purchased goods worth of Rs 1,000 from Bimal of an.1,2019 and accepted a bill for one month drawn by Bimal for the same. Being Bimal unable to meet the bill on the due date, Amar requested Bimal to accept cash Rs 250 and draw a new bill for 2 months for the balance plus interest of Rs 10. Bimal accepted the proposal and drew on Amar another bill. The bill was duly met on the due date
Pass journal entries in the book of both the parties.

The solution of Question No 36 Chapter No 15: –

 

In the book of Amar(Drawee)
Date   Particulars
L.F. Debit Credit
2019          
Jan.1 Purchases A/c Dr.   1,000  
  To Bimal A/c       1,000
  (Being goods purchased on credit .)        
           
Jan.1 Bimal A/c Dr.   1,000  
  To Bill payable A/c       1,000
  (Being our acceptance given to B for 1 month.)        
           
Feb.4 Bill payable A/c Dr.   1,000  
  To Bimal A/c       1,000
  (Being cancellation of the old bill.)        
           
Feb.4 Bimal A/c Dr.   250  
  To Cash A/c       250
  (Being cash paid .)        
           
Feb.4 Bimal A/c Dr.   750  
  Interest A/c Dr.   10  
  To Bill Payable A/c       760
  (Being a new bill accepted in favour of Bimal including interest.)        
           
Apr.4 Bill Payable A/c Dr.   760  
  To Cash A/c       760
  (Being payment of the bill on maturity.)        
         

 

In the book of Bimal (Drawer)
Date   Particulars
L.F. Debit Credit
2019          
Jan.1 Amar A/c Dr.   1,000  
  To Sale A/c       1,000
  (Being goods sold to A on credit .)        
           
Jan.1 Bill Receivable A/c Dr.   1,000  
  To Amar A/c       1,000
  (Being our acceptance given to B for 2 months.)        
           
Feb.4 Amar A/c Dr.   1,000  
  To Bill Receivable A/c       1,000
  (Being cancellation of the old bill.)        
           
Feb.4 Cash A/c Dr.   250  
  To Amar A/c       250
  (Being amount of interest received.)        
           
Feb.4 Bill Receivable A/c Dr.   760  
  To Amar A/c       750
  To Interest A/c       10
  (Being receipt of the new bill for the amount with interest .)        
           
Apr.7 Cash A/c Dr.   760  
  To Bill Receivable A/c       760
  (Being the amount received on due date .)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 35 Chapter No 15 – USHA Publication 11 Class

Question No 35 Chapter No 15

Question No 35 Chapter No 15

Renewal of Bill

35. On 1st April 2019. A purchased goods worth Rs 1,000 from B and accepted a bill of exchange for the amount for 2 months. On the 4th April, B got the bill discounted by his bankers for Rs 985. before due date, A approached B with a request of renewal of the bill for another two months. B consented on the condition that the new bill will including rs 20 as interest. The second bill was duly met
Pass the journal entries in both the parties.

The solution of Question No 35 Chapter No 15: –

 

In the book of A(Drawee)
Date   Particulars
L.F. Debit Credit
2019          
Apr.1 Purchases A/c Dr.   1,000  
  To B A/c       1,000
  (Being goods purchased on credit .)        
           
Apr.1 B A/c Dr.   1,000  
  To Bill payable A/c       1,000
  (Being our acceptance given to B for 2 months.)        
           
Jun.4 Bill payable A/c Dr.   1,000  
  To B A/c       1,000
  (Being cancellation of the old bill.)        
           
Jun.4 B A/c Dr.   1,020  
  To Bill payable A/c       1,020
  (Being amount of interest received.)        
           
Aug.7 Bill payable A/c Dr.   1,020  
  To Cash A/c       1,020
  (Being the payment of the bill on the due date .)        
         

 

In the book of B(Drawer)
Date   Particulars
L.F. Debit Credit
2019          
Apr.1 A A/c Dr.   1,000  
  To Sale A/c       1,000
  (Being goods sold to A on credit .)        
           
Apr.1 Bill Receivable A/c Dr.   1,000  
  To A A/c       1,000
  (Being our acceptance given to B for 2 months.)        
           
Jun.4 A A/c Dr.   1,000  
  To Bill Receivable A/c       1,000
  (Being cancellation of the old bill.)        
           
Jun.4 Bill Receivable A/c Dr.   1,020  
  To Interest A/c       20
  To A A/c       1,000
  (Being amount of interest received.)        
           
Aug.7 Cash A/c Dr.   1,020  
  To Bill Receivable A/cQuestion No 35 Chapter No 15 – USHA Publication 11 Class       1,020
  (Being the payment of the bill on the due date .)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)