Question No 11 B Chapter No 13

Question No 11 B Chapter No 13

Dishonor of a Bill

11 (B).On 15th October, 2016, Y purchased goods worth 75,000 from X, and accepted a three months bill for this amount drawn by X. On the due date, it was dishonoured. Noting charges paid by X 600. On 18th January, 2017, Y requested X for renewal of the bill for another two months, for which X agrees, provided that interest is paid @ 15% p.a. in cash. Make Journal entries of these transactions in the books of X and Y.

The solution of Question No 11 B Chapter No 13: –

In the books of X (Drawer)
Date  Particulars
L.F.DebitCredit
2016     
Oct.15Y A/cDr. 75,000 
 To Sale A/c   75,000
 (Being goods sold to Y)    
      
Oct.15Bills Receivable A/cDr. 75,000 
 To Y A/c   75,000
 (Being Bill dishonoured on due date and noting charges received )    
2017     
Jan.18Y A/cDr. 75,600 
 To Bills Receivable A/c   75,000
 To Cash A/c   600
 (Being Bill dishonoured on due date and noting charges received)    
      
Jan.18Y A/cDr. 1,890 
 To Interest A/c   1,890
 (Being Interest due to be received)    
      
Jan. 18Cash A/cDr. 1,890 
 Bills Receivable A/cDr. 75,600 
 To Y A/c   77,490
 (Being Y accepted the new bill)    
      
Mar. 21Cash A/cDr. 75,600 
 To Bills Receivable A/c   75,600
 (Being Bill honoured on maturity)    
     
In the books of Y (Drawee)
Date  Particulars
L.F.DebitCredit
2016     
Oct. 15Purchases A/cDr. 75,000 
 To X A/c   75,000
 (Being Goods purchased from X)    
      
Oct. 15X A/cDr. 75,000 
 To Bills Payable A/c   75,000
 (Being Bill drawn by X, accepted)    
2017     
Jan. 18Bills Payable A/cDr. 75,000 
 Noting Charges A/cDr. 600 
 To X A/c   75,600
 (Being Bill dishonoured on due date and noting charges paid)    
      
Jan. 18Interest A/cDr. 1,890 
 To X A/c   1,890
 (Being Interest due to be paid)    
      
Jan.18X A/cDr. 77,490 
 To Cash A/c   1,890
 To Bills Payable A/c   75,600
 (Being New bill drawn by X, accepted)    
      
Mar. 21Bills Payable A/cDr. 75,600 
 To Cash A/c   75,600
 (Being Interest due to be paid)    
     

Working Note: –

Calculation of Discounting Charges

Amount of Rebate=75,60015X1
10012
       
 =Rs 1,890    

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 11 B 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

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close