Question No 09 Chapter No 13

Retiring a Bill under Rebate

09. Record the following transaction in the books of Mohan:
(i) Mohan retired his acceptance to Suresh for 10,000 before due date and earned rebate of 200
(ii) One month before maturity Rajesh informed Mohan that he wants to Make payment of his acceptance amounting Rs 8,000 immediately, to which Mohan agreed and also allowed him a rebate @15% p.a.

The solution of Question No 09 Chapter No 13: –

 In the books of Mohan(Drawer) Date Particulars L.F. Debit Credit 2019 (i) Cash A/c Dr. 9,800 Rebate A/c Dr. 200 To Bills Receivable A/c 10,000 (Being Bill retired under the rebate) (ii) Cash A/c Dr. 9,875 Rebate A/c Dr. 125 To Bills Receivable A/c 10,000 (Being Bill retired under the rebate of @15)

Working Note: –

Calculation of Discounting Charges

 Amount of Rebate = 10,000 x 15 X 1 100 12 = Rs 125

Bills Payable Book | Subsidiary Books | Examples

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

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