Question No 16 Chapter No 16 - T.S. Grewal 11 Class

Question No 16 Chapter No 16

16. On 15th June 2017, Mohan sold goods to Sohan valued at 2,000. He drew a bill at 3 months for the amount and discounted the same with his bankers at 1,960. On the due date, the bill was dishonoured and Mohan paid to the bank the amount due plus the noting charges of 10. Draft the Journal entries in the books of all parties.

The solution of Question No 16 Chapter No 16: –

Books of Mohan
Date	Particulars		L.F.	Debit	Credit
2017
June 15	Sohan A/c	Dr.		2,000
	To Sales A/c				2,000
	(Being Good sold to Sohan)
June 15	Bills Receivable A/c	Dr.		2,000
	To Sohan				2,000
	(Being Sohan ′s acceptance was received)
June 15	Bank A/c	Dr.		1,960
	Discount Charges A/c	Dr.		40
	To Bills Receivable A/c				2,000
	(Being Sohan ′acceptance discounted with a bank)
Sep.18	Sohan A/c	Dr.		2,010
	To Bank A/c				2,010
	(Being Received cash from Kailash)
Sep.18	Bank A/c			2,010
	To Cash A/c				2,010
	(Being Liabilities on account bill dishonoured was discharged)

Books of Sohan
Date	Particulars		L.F.	Debit	Credit
2017
June 15	Purchases A/c	Dr.		2,000
	To Mohan A/c				2,000
	(Being goods were bought from Sohan)
June 15	Mohan A/c	Dr.		2,000
	To Bills Payable A/c				2,000
	(Being Bills drawn by Mohan was accepted)
Sep.18	Bills Payable A/c	Dr.		2,000
	Noting Charges A/c	Dr.		10
	To A A/c				2,010
	(Being Bills Payable dishonored)

Bill of exchange (BOE): Meaning and Examples

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- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book