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. Debit Credit 2018 Mar.02 Nisha A/c Dr. 19,000 To Sale A/c 19,000 (Being Goods sold to Nisha ) Mar.02 Bills Receivable A/c Dr. 15,000 Cash A/c Dr. 4,000 To Dinesh A/c 19,000 (Being Nisha accepted the bill) Mar.02 Bank A/c Dr. 14,625 Discounting Charges A/c Dr. 375 To Bills Receivable A/c 15,000 (Being Bill discounted with the bank @18%) June 05 Nisha A/c (15, 000 +30) Dr. 15,030 To Bank A/c 15,030 (Being Bill dishonoured) Jun. 05 Nisha A/c Dr. 150 To Interest A/c 150 (Being Cash received from Dinesh) Jun. 05 Cash A/c Dr. 3,030 Bills Receivable New A/c 12,000 +150 Dr. 12,150 To Nisha A/c 15,180 (Being New Acceptance received)
 In the books of Nisha’s (Drawee) Date Particulars L.F. Debit Credit 2016 Mar.02 Purchases A/c Dr. 19,000 To Asha A/c 19,000 (Being Goods purchased from A) Mar.02 Asha A/c Dr. 19,000 To Bills Payable A/c 15,000 To Cash A/c 4,000 (Being Acceptance received) Jun.05 Bills Payable A/c Dr. 15,000 Noting Charges A/c Dr. 30 To A A/c 15,030 (Being Bill dishonoured) Jun.05 Interest A/c Dr. 150 To Asha A/c 150 (Being Interest due to be paid) Jun. 05 Asha A/c Dr. 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 = 15,000 x 10 X 3 100 12 = Rs 375

Calculation of the amount of Interest

 Amount of Interest = 12,000 x 15 X 1 100 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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