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

Q-13 - CH-13 - D.K Goal +1 Book 2020 - Solution

Question No 13 Chapter No 13

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 x 18 X 2 100 12 = Rs 900

Calculation of amount of Interest

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

Bills Payable Book | Subsidiary Books | Examples

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

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