Question No 14 Chapter No 13

Question No 14 Chapter No 13

Dishonour of bill discounted from the Bank

14. Asha sold goods worth 19,000 to Nisha on March 2, 2016. 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her
bank @ 10% p.a. On the due date Nisha dishonoured the bill and the bank paid 30 as noting charges. On 5th June, Nisha paid 3,030 including noting charges in cash and accepted a new bill at one month for the amount due to Asha together with interest @ 15% p.a.
Record the necessary journal entries in the books of Asha and Nisha

The solution of Question No 14 Chapter No 13: –

In the books of Asha’s (Drawer)
Date  Particulars
L.F.DebitCredit
2018     
Mar.02Nisha A/cDr. 19,000 
 To Sale A/c   19,000
 (Being Goods sold to Nisha )    
      
Mar.02Bills Receivable A/cDr. 15,000 
 Cash A/cDr. 4,000 
 To Dinesh A/c   19,000
 (Being Nisha accepted the bill)    
      
Mar.02Bank A/cDr. 14,625 
 Discounting Charges A/cDr. 375 
 To Bills Receivable A/c   15,000
 (Being Bill discounted with the bank @18%)    
      
June 05Nisha A/c (15, 000 +30)Dr. 15,030 
 To Bank A/c   15,030
 (Being Bill dishonoured)    
      
Jun. 05Nisha A/cDr. 150 
 To Interest A/c   150
 (Being Cash received from Dinesh)    
      
Jun. 05Cash A/cDr. 3,030 
 Bills Receivable New A/c 12,000 +150Dr. 12,150 
 To Nisha A/c   15,180
 (Being New Acceptance received)    
     
In the books of Nisha’s (Drawee)
Date  Particulars
L.F.DebitCredit
2016     
Mar.02Purchases A/cDr. 19,000 
 To Asha A/c   19,000
 (Being Goods purchased from A)    
      
Mar.02Asha A/cDr. 19,000 
 To Bills Payable A/c   15,000
 To Cash A/c   4,000
 (Being Acceptance received)    
      
Jun.05Bills Payable A/cDr. 15,000 
 Noting Charges A/cDr. 30 
 To A A/c   15,030
 (Being Bill dishonoured)    
      
Jun.05Interest A/cDr. 150 
 To Asha A/c   150
 (Being Interest due to be paid)    
      
Jun. 05Asha A/cDr. 15,180 
 To Bills Payable A/c 12,000 +150   12,150
 To Cash A/c   3,030
 (Being Interest due to be paid)    
     

Working Note: –

Calculation of Discounting Charges

Discounting Charges=15,00010X3
10012
       
 =Rs 375    

Calculation of the amount of Interest

Amount of Interest=12,00015X1
10012
       
 =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 14 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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