Question No 17 Chapter No 13

Question No 17 Chapter No 13

Dishonour of bill discounted from the Bank

17. Pass Journal entries for the following transaction:-

  1. Discharged our acceptance to Ghanshyam & Co. for Rs 5,000 by a cheque of Rs 1,500 and a new bill for the balance plus interest of Rs 100
  2. Our acceptance to Kanshi Ram & Sons for Rs 3,000 renewed for 3 months with interest at 18% p.a.
  3. Before the due date of the bill for Rs 6,000, Gopal pays us Rs 2,000 in cash and endorsed to us a bill of his for Rs 1,500 and we drew on him a fresh bill for the balance plus Rs 120 for interest and received acceptance from him
  4. Our own acceptance to X for Rs 4,000 dishonoured this day due to the omission of necessary instruction to our bankers to pay. X claimed Rs 4,050 including charges, which we paid by cheque

The solution of Question No 17 Chapter No 13: –

In the books of 
Date  Particulars
L.F.DebitCredit
2018     
(i)Cheque A/cDr. 1,500 
 To Ghanshyam & Co A/c   1,500
 (Being cheque received from Ghanshyam & Co.)    
      
 Ghanshyam & Co A/cDr. 3,600 
 To Bill Receivable A/c   3,500
 To Interest A/c   100
 (Being new bill drawn on Ghanshyam with Rs 100 interest)    
      
 Bills Receivable A/cDr. 3,600 
 To Ghanshyam & Co A/c   3,600
 (Being Bill dishonoured)    
     
In the books of 
Date  Particulars
L.F.DebitCredit
2018     
(ii)Cheque Kanshi Ram & Sons A/c
A/c
Dr. 3,000 
 To Bill Receivable A/c   3,000
 (Being cheque received from Ghanshyam & Co.)    
      
 Kanshi Ram & Sons A/cDr. 135 
 To Interest A/c   135
 (Being new bill drawn on Ghanshyam with Rs 100 interest)    
      
 Bills Receivable A/cDr. 1,500 
 To Kanshi Ram & Sons A/c   1,500
 (Being Bill dishonoured)    
     
In the books of 
Date  Particulars
L.F.DebitCredit
2018     
(ii)Cheque A/cDr. 2,000 
 Bill Receivable A/c (i)Dr. 1,500 
 Gopal A/cDr. 1,500 
 To Bill Receivable A/c   5,000
 (Being cheque received from Ghanshyam & Co.)    
      
 Gopal A/cDr. 120 
 To Interest A/c   120
 (Being new bill drawn on Ghanshyam with Rs 100 interest)    
      
 Bills Receivable A/cDr. 2,620 
 To Gopal A/c   2,620
 (Being Bill dishonoured)    
     
In the books of 
Date  Particulars
L.F.DebitCredit
2018     
(iv)Bill Payable A/cDr. 4,000 
 Noting Charges A/cDr. 50 
 To X A/c   4,050
 (Being bill dishonoured and noting charges paid by x )    
      
 X A/cDr. 4,050 
 To Bank A/c   4,050
 (Being new bill drawn including noting changes. )    
     

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 17 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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