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
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 )    
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
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)    
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
 =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

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ISC Accounts 11 20 Image min 197x300 - Question No 11 B Chapter No 13 - D.K Goal 11 Class
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