Question No 14 Chapter No 13 – D.K Goal 11 Class

Question No 14 Chapter No 13

Question No 14 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

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 10 X 3
100 12
             
  = Rs 375        

Calculation of the amount of Interest

Amount of Interest = 12,000 15 X 1
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.

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D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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