Question No 16 Chapter No 15 - USHA Publication 11 Class

Question No 16 Chapter No 15

Table of Contents

The solution of Question No 16 Chapter No 15: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Alternatives available with Drawer

16. A bill for Rs 8,000 is drawn by B on C on 1st Feb, 20019 for 3 months and accepted by C payable at his bank. Show what entries would be passed in the book of B in each of the following circumstances:
(a)If he retained the bill till the due date and then realized it on Maturity.
(b)If he discounted it with his bank for Rs 7,800 immediately.
(c)If je endorsed it over to his creditor M in Settlement of Debit on 1st March 2019

The solution of Question No 16 Chapter No 15: –

In the books of A (Drawer)
Date	Particulars		L.F.	Debit	Credit
2018
(a)	Cash A/c	Dr.		8,000
	To Bill Receivable A/c				8,000
	(Being cash received on Maturity)

(b)	Bank A/c	Dr.		7,800
	Discount A/c	Dr.		200
	To Bills receivable A/c				8,000
	(Being Bill discounted with the bank)

(c)	M A/c	Dr.		8,000
	To Bill Receivable A/c				8,000
	(Being the bill endorsed to M in settlement of Debt)