Chapter No. 16 – Accounting for Bills of Exchange – Solution

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A bill of exchange is an instrument that contains a promise to pay some amount of money to a certain person after a certain period of time. It is generally drawn by the creditor(maker or drawer) on his debtor(acceptor or drawee) and the debtor gives the acceptance that he will pay the money to the maker(drawer) after some certain period or a specific date. It should be accepted by the person to whom it is created or by another person on his/her behalf. Without acceptance, this document doesn’t have any value.

The Parties Involved in the Bill of exchange:-

There are three parties are involved, shown as follows:-

  1. Drawer
  2. Drawee
  3. Payee

1. Drawer: – 

The drawer is the person who makes the bill of exchange on his/her debtor and he will also a receiver of the money mention in it.  The seller of goods and services is known as a drawer (expect some cases will explain further).

2. Drawee: –

The drawee is the person to whom the bill of exchange created and he will pay the amount mention in it at the time of maturity of a bill.  The purchase of goods and services is known as a drawee (expect some cases will explain further). The Drawee is also known as acceptor because he gives the acceptance to pay the mentioned amount on the mentioned date or after a specific period.

3. Payee: –

The person to whom the payment is made is known as the payee. basically, the drawer of the bill is known as the payee but in some cases in which the bill is not retained by the drawer himself then the payee will be the person who has a bill. In the following cases the drawer will not be treated as a payee: –

  1. When the bill is discounted by the drawer from the bank then the bank will be treated as a payee.
  2. When the drawer endorsed the bill to his/her creditor then the receiver of that bill will be treated as a payee.

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Chapter No. 16 – Accounting for Bills of Exchange – Solution

Question No.1 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 1 Chapter No 16 1. Calculate the due dates of the bills in the following cases: Date of ...
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Question No.2 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 2 Chapter No 16 2. On 10th March 2018, A draws on B a bill at 3 months ...
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Question No.3 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 3 Chapter No 16 3. On 1st January 2018, A sold goods to B for 5,000 plus IGST ...
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Question No.4 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 4 Chapter No 16 4. Manish sold goods to Kumar for 10,000 plus CGST and SGST @ 9% ...
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Question No.5 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 5 Chapter No 16 Discount of bill from the Bank 5. Vinod sold goods to Darbara Singh for ...
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Question No.6 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 6 Chapter No 16 6. Dinesh received from Shridhar and acceptance for 3,000 on 1st September 2016 at ...
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Question No.7 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 7 Chapter No 16 Endorsement of the Bill 7. A drew a bill of 1,000 on B for ...
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Question No.8 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 8 Chapter No 16 8. A owed B 8,000. He gave a bill for the same on 1st ...
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Question No.9 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 9 Chapter No 16 9. A sold goods to B for 20,000 plus CGST and SGST @ 9% ...
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Question No.10 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 10 Chapter No 16 10. On 10th July 2017, A sold goods to B for 35,000 plus IGST ...
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Question No.11 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 11 Chapter No 16 Sending the Bill to Bank for Collection 11. Mohan Singh draws a bill on ...
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Question No.12 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 12 Chapter No 16 Different Uses of Bills Receivable 12. X draws on Y a bill for 4,000 ...
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Question No.13 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 13 Chapter No 16 Dishonour of the Bill 13. Ram draws a bill for 2,000 on Shyam on ...
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Question No.14 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 14 Chapter No 16 14. On 20th March, 2018, Naresh sold goods to Kailash to the value of ...
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Question No.15 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 15 Chapter No 16 15. On 1st July 2017, A drew a bill for 5,000 on B payable ...
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Question No.16 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 16 Chapter No 16 16. On 15th June 2017, Mohan sold goods to Sohan valued at 2,000. He ...
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Question No.17 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 17 Chapter No 16 17. On 1st March 2018, R accepted a Bill of Exchange of 20,000 from ...
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Question No.18 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 18 Chapter No 16 18. On 1st January 2018, A drew a bill on B for 10,000 payable ...
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Question No.19 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 19 Chapter No 16 19. B owes A 4,000. On 1st January 2018, B accepts a 3 months ...
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Question No.20 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 20 Chapter No 16 20. Y owes X 4,000. On 1st January 2017, Y accepts a 3 months ...
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Question No.21 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 21 Chapter No 16 21. Rama sold goods of 12,000, charged IGST @ 18% to Reshma on 1st ...
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Question No.22 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 22 Chapter No 16 22. On 1st January 2017, A draws a bill on B for 1,000 payable ...
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Question No.23 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 23  Chapter No 16 23. A bill for 1,000 is drawn by A on B and accepted by ...
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Question No.24 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 24  Chapter No 16 24. On 1st January 2018 for goods sold, Ramesh drew a Bill of Exchange ...
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Question No.25 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 25  Chapter No 16 25. A purchases goods worth 6,200 from B and gives him his acceptance for ...
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Question No.26 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 26  Chapter No 16 26. X sells goods for 40,000 to Y on 1st January 2012 and on ...
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Question No.27 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 27  Chapter No 16 27. On 1st January 2018, X received from Y three Bills of Exchange for ...
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Question No.28 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 28  Chapter No 16 28. On 1st January 2018, Mr X sold goods to Mr Y for 4,500 ...
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Question No.29 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 29  Chapter No 16 29. Ram owes 2,000 to Mohan on 1st January 2018. On this date, he ...
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Question No.30 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 30  Chapter No 16 30. On 15th June, 2017, X sold to Y goods to the value of ...
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Question No.31 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 31  Chapter No 16 31. X draws a bill on Y for 2,000 on 1st January 2017, Y ...
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Question No.32 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 32  Chapter No 16 32. On 1st June 2017 A sold goods to B for 250. B gave ...
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Question No.33 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 33  Chapter No 16 33. A sold goods to B on 1st September, 2017 for 16,000. B immediately ...
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Question No.34 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 34  Chapter No 16 34. On 1st May, 2017 Merchant & Co. sold goods to AB & Co ...
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Question No.35 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 35  Chapter No 16 35. An owed B 400. A accepted a Bill of Exchange at 3 months ...
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Question No.36 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 36  Chapter No 16 36. Amar sells goods to Bhola for 10,000 and draws upon him a bill ...
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Question No.37 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 37  Chapter No 16 37. 'B' being unable to meet his acceptance for 2,000 due on 15th June, ...
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Question No.38 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 38  Chapter No 16 38. Give the Journal entries for the following:a B's acceptance to us for 1,000 ...
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Question No.39 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 39  Chapter No 16 39. Leena sold goods to Meena on 1st March 2009 for 68,000 and drew ...
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Question No.40 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 40  Chapter No 16 40. How will you record the following transactions in the books Kapadia? a  A ...
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Question No.41 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 41  Chapter No 16 41. Y purchased goods for 6,000 on 1st June, 2011 from X and on ...
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Question No.42 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 42  Chapter No 16 42. On 1st January 2008, A sold goods to B for 1,00,000 received 25,000 ...
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Question No.43 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 43  Chapter No 16 43. On 1st January 2018, Mr X sold goods to Mr Y for 45,000 ...
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Question No.44 Chapter No.16 T.S. Grewal 1 Book 2019 Solution min min 360x202 - Chapter No. 16 - Accounting for Bills of Exchange - Solution
Question No 44 Chapter No 16 44. Amar sells goods to Bhola for 10,000 plus CGST and SGST @ 9% ...
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