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

Question No 13 Chapter No 13

Question No 13 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Dishonour and Renewal of Bill

13. A sells goods for 30,000 to B on 1st January, 2018 and on the same day draws a bill on B at three months for the amount. B accepts it and returns it to A, who discounts it on 4th February, 2017 with his bank at 18% per annum. The acceptance is dishonoured on the due date, the noting charges paid by the bank being 200.
On 4th April, 2017, B accepts a new bill at two months for the amount then due to A together with interest at 12 per cent per annum.
Make Journal entries to record these transactions in the books of A and B.

The solution of Question No 13 Chapter No 13: –

In the books of A (Drawer)
Date   Particulars
L.F. Debit Credit
2016          
Jan.01 B A/c Dr.   30,000  
  To Sale A/c       30,000
  (Being Goods sold to B )        
           
Jan.01 Bills Receivable A/c Dr.   30,000  
  To Dinesh A/c       30,000
  (Being B accepted the bill)        
           
Mar.04 Bank A/c Dr.   29,100  
  Discounting Charges A/c Dr.   900  
  To Bills Receivable A/c       30,000
  (Being Bill discounted with the bank @18%)        
           
Apr. 04 B A/c Dr.   30,200  
  To Bank A/c       30,200
  (Being Bill dishonoured on due date and noting charges paid)        
           
Apr. 04 B A/c Dr.   604  
  To Interest A/c       604
  (Being Cash received from Dinesh)        
           
Apr. 04 Bills Receivable A/c Dr.   30,804  
  To B A/c       30,804
  (Being Dinesh accepted the new bill)        
           
Jul.07 Cash A/c Dr.   30,804  
  To Bills Receivable A/c       30,804
  (Being Bill honoured on due date)        
         
In the books of B (Drawee)
Date   Particulars
L.F. Debit Credit
2016          
Jan. 01 Purchases A/c Dr.   30,000  
  To A A/c       30,000
  (Being Goods purchased from A)        
           
Jan. 01 A A/c Dr.   30,000  
  To Bills Payable A/c       30,000
  (Being Bill drawn by X, accepted)        
           
Apr. 04 Bills Payable A/c Dr.   30,000  
  Noting Charges A/c Dr.   200  
  To A A/c       30,200
  (Being Bill dishonoured on due date and noting charges paid)        
           
Apr. 04 Interest A/c Dr.   604  
  To A A/c       604
  (Being Interest due to be paid)        
           
Mar. 04 Interest A/c Dr.   2,400  
  To Chander       2,400
  (Being interest due to being paid)        
           
Apr. 04 A A/c Dr.   30,804  
  To Bills Payable A/c       30,804
  (Being New bill drawn by A, accepted)        
           
Jul. 04 Bills Payable A/c Dr.   30,804  
  To Cash A/c       30,804
  (Being interest due to be paid)        
         

Working Note: –

Calculation of Discounting Charges

Discounting Charges = 30,000 18 X 2
100 12
             
  = Rs 900        

Calculation of amount of Interest

Amount of Interest = 30,000 12 X 2
100 12
             
  = Rs 604        

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 13 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

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