Question No 11 B Chapter No 13 – D.K Goal 11 Class

Question No 11 B Chapter No 13

Question No 11 B Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

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

Working Note: –

Calculation of Discounting Charges

Amount of Rebate = 75,600 15 X 1
100 12
             
  = 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

Your email address will not be published. Required fields are marked *