Question No 09 Chapter No 15 - USHA Publication 11 Class

Question No 09 Chapter No 15

Table of Contents

The solution of Question No 09 Chapter No 15: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Discounting of Bill

9. Jimmy sold goods to Johny for Rs 2,000 on credit on 18th July 2017 and received from him a bill of 3 months for Rs 2,100 which includes Rs 100 for interest for credit period of sale. Give journal entries in the books of both parties.
(i)When the bill is discounted immediately @6% p.a.
(ii) When the bill is discounted immediately at 9% p.a.

The solution of Question No 09 Chapter No 15: –

In the books of Jimmy(Drawer)
Date	Particulars		L.F.	Debit	Credit
2018
July.18	Johny A/c	Dr.		2,100
	To Sale A/c				2,000
	To Interest A/c				100
	(Being goods sold on credit)

July.18	Bills Receivable A/c	Dr.		2,100
	To Johny A/c				2,100
	(Being acceptance received for 3 months)

(i)	Bank A/c	Dr.		2,068.50
	Discount A/c	Dr.		31.50
	To Bills Receivable A/c				2,100
	(Being bill discounted @6% p.a.)
(ii)	Bank A/c	Dr.		2,052.75
	Discount A/c	Dr.		47.25
	To Bills Receivable A/c				2,100
	(Being bill discounted @9% p.a.)

In the books of Johny(Drawee)
Date	Particulars		L.F.	Debit	Credit
2018
July.1	Purchase A/c	Dr.		2,000
	Interest A/c	Dr.		100
	To Jimmy A/c				2,100
	(Being purchases goods on credit)

July.1	Ram A/c	Dr.		2,100
	To Bills Payable A/c				2,100
	(Being acceptance given for 60 days)

Oct. 4	Bills Payable A/c	Dr.		2,100
	To Cash A/c				2,100
	(Being bill paid on maturity date )