Question No 10 Chapter No 16 - T.S. Grewal 11 Class

Question No 10 Chapter No 16

10. On 10th July 2017, A sold goods to B for 35,000 plus IGST @ 18%. He drew on him a 3 months bill for 35,000 and received a cheque for the balance amount. B accepted the bill. After 10 days, A endorsed the bill to his creditor C. On the due date, acceptance is duly met. Show entries in the books of A, B, and C

The solution of Question No 10 Chapter No 16: –

Books of A
Date	Particulars		L.F.	Debit	Credit
2017
July 10	B A/c	Dr.		41,300
	To Sales A/c				35,000
	To Output IGST A/c				6,300
	(Being goods sold plus IGST @12)
July 10	Bills Receivable A/c	Dr.		35,000
	Bank A/c	Dr.		6,300
	Bills Payable A/c				41,300
	(Being bill accepted by B and paid IGST by Cheque )
July 20	C A/c	Dr.		35,000
	To Bills Receivable A/c				35,000
	(Being B′s acceptance endorsed in favour of C)

Books of B
Date	Particulars		L.F.	Debit	Credit
2017
July 10	Purchases A/c	Dr.		35,000
	Input IGST A/c	Dr.		6,300
	To A A/c				41,300
	(Being goods bought plus IGST @12)
July 10	A A/c	Dr.		41,300
	To Bills Payable A/c				35,000
	To Bank A/c				6,300
	(Being bill accepted by B and paid IGST by Cheque )
Oct 13	Bills Payable A/c	Dr.		35,000
	To Cash A/c				35,000
	(Being payment made of the bills payable)

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Books of C
Date	Particulars		L.F.	Debit	Credit
2017
July 20	Bills Receivable A/c	Dr.		35,000
	To A A/c				35,000
	(Being bill received from A)
Oct 13	Cash A/c	Dr.		35,000
	To Bills Receivable A/c				35,000
	(Being cash received from B)

Bill of exchange (BOE): Meaning and Examples

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

- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book