Question No 07 Chapter No 13

Question No 07 Chapter No 13

Sending the Bill to Bank for Collection

07. X draws a Y bill for Rs 4,000 which was duly accepted by Y,Y meets the bill on the due date. Show what entries would be passed in the books of X and U under each of the following circumstances:

  1. If X retains the bill till the due date
  2. If X discounts the same with his banker paying Rs 100 for discount
  3. If X endorse the same to his creditor Z, in full settlement of his debts of Rs 4,080
  4. If X sends the bills to his banker for collection.

The solution of Question No 07 Chapter No 13: –

In the books of A (Drawer)
Date  Particulars
L.F.DebitCredit
2019     
Bills Receivable A/cDr. 4,000 
 To Y A/c   4,000
 (Being Y accepted the bill)    
      
(i)Cash A/cDr. 4,000 
 To Bills Receivable A/c   4,000
 (Being Bill honoured on maturity)    
      
(ii)Bank A/cDr. 3,900 
 Discount A/cDr. 100 
 To Bills Receivable A/c   4,000
 (Being Bills sent to bank for Discount)    
      
(iii)Z A/cDr. 4,080 
 To Bills Receivable A/c   4,000
 To Discount Received A/c   80
 (Being Bills endorsed to Z in full Settlements)    
      
(iv)Sent for Collection A/cDr. 4,000 
 To Bills Receivable A/c   4,000
 (Being bill sent for collection)    
     
In the books of B (Drawee)
Date  Particulars
L.F.DebitCredit
2019     
Y A/cDr. 4,000 
 To Bills Payable A/c   4,000
 (Being Bill drawn by X, accepted)    
      
(i)Bills Payable A/cDr. 4,000 
 To Cash A/c   4,000
 (Being Bill honoured on maturity)    
      
(ii)Bills Payable A/cDr. 4,000 
 To Bank A/c   4,000
 (Being Bill honoured on maturity)    
      
(iii)Bills Payable A/cDr. 4,000 
 To Bank A/c   4,000
 (Being Bill honoured on maturity)    
      
(iv)Bills Payable A/cDr. 4,000 
 To Bank A/c   4,000
 (Being Bill honoured on maturity)    
     

Bills Payable Book | Subsidiary Books | Examples

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

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 07 Chapter No 13 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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