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

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. 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 x 15 X 1 100 12 = Rs 1,890

Bills Payable Book | Subsidiary Books | Examples

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## D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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