Question No 08 Chapter No 13

Question No 08 Chapter No 13

Sending the Bill to Bank for Collection

08. On January 1,2018 Ajay sold goods to Balbir for Rs 10,000 at a discount of 20%. On that date, Balbir acceptance a bill drawn on him by Ajay for Rs 8,000 payable 3 months after Sight. Having surplus funds, Balbir paid off the bill on 4th March 2018 and was allowed a rebate of 18% per annum. Show journal entries in the books of Ajay and Balbir.

The solution of Question No 08 Chapter No 13: –

In the books of Ajay (Drawer)
Date  Particulars
L.F.DebitCredit
2019     
Jan.01Balbir A/cDr. 8,000 
 Discount A/cDr. 2,000 
 To Y A/c   10,000
 (Being Goods sold to Balbir)    
      
Jan.01Sent for Collection A/cDr. 8,000 
 To Balbir A/c   8,000
 (Being Bill accepted by Balbir)    
      
Mar.04Cash A/cDr. 7,880 
 Rebate A/cDr. 120 
 To Bills Receivable A/c   8,000
 (Being Bills sent to bank for Discount)    
     
In the books of Balbir (Drawee)
Date  Particulars
L.F.DebitCredit
2019     
Jan. 01Purchases A/cDr. 4,000 
 To Ajay A/c   4,000
 (Being Goods purchased from Ajay)    
      
Jan. 01Ajay A/cDr. 4,000 
 To Bills Payable A/c   4,000
 (Being Bill drawn by Ajay, accepted)    
      
Mar. 04Bills Payable A/cDr. 8,000 
 To Cash A/c   7,880
 To Rebate A/c   120
 (Being Bill retired under there bate of @18)    
     

Working Note: –

Calculation of Discounting Charges

Amount of Rebate=8,00018X1
10012
       
 =Rs 120    

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

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ISC Accounts 11 20 Image min 197x300 - Question No 08 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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