Question No 17 Chapter No 15 - USHA Publication 11 Class

Question No 17 Chapter No 15

Table of Contents

The solution of Question No 17 Chapter No 15: –

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

Alternatives available with Drawer

17. Subhash Ghai Sold goods to Parkash Mehra for Rs 10,000 on Oct 1, 2018 and October 10 2018 he received Rs 4,000 in cash and drew a bill of exchange of 3 months for the balance. Pass the necessary journals entries in the books of both the parties in the following cases:
(i)the bill is retained till due date
(ii)the bill is endorsed by Ramanand Sagar.
(iii)The bill is discounted from the bank after one month @12%p.a.
(iv)The bill is sent to the bank for collection on January 10 2019. Collection charges Rs 100
The bill is honoured on the due date in al the cases.

The solution of Question No 17 Chapter No 15: –

In the books of Subhas Ghai (Drawer)
Date	Particulars		L.F.	Debit	Credit
2018
Oct.1	Parkash Mehra A/c	Dr.		10,000
	To Sales A/c				10,000
	(Being cash received on Maturity)

Oct.10	Cash A/c	Dr.		4,000
	Bill Receivable A/c	Dr.		6,000
	To Parkash Mehra A/c				10,000
	(Being Bill discounted with the bank)

(i)	Cash A/c	Dr.		6,000
	To Bill Receivable A/c				6,000
	(Being payment of bill received on Maturity)

(ii)	Ramanand Sagar A/c	Dr.		6,000
	To Bill Receivable A/c				6,000
	(Being bill endorsed)

(iii)	Bank A/c	Dr.		5,940
	Discount A/c	Dr.		60
	To Bill Receivable A/c				6,000
	(Being bill discounted on a month before maturity @12% p.a.)

(iv)(a)	Bank for collection A/c	Dr.		6,000
	To Bill Receivable A/c				6,000
	(Being bill sent to ba\qank for collection)

(b)	Bank A/c	Dr.		5,900
	Collection Charges A/c	Dr.		100
	To Bill Receivable A/c				6,000
	(Being bill collected by the bank)

In the books of Paskash Mehra (Drawee)
Date	Particulars		L.F.	Debit	Credit
2018
Oct. 1	Purchases A/c	Dr.		10,000
	To Subhash Ghai A/c				10,000
	(Being bill discounted on a month before maturity @12% p.a.)

Oct. 10	Subhash Ghai A/c	Dr.		10,000
	To Cash A/c				4,000
	To Bill Payable A/c				6,000
	(Being account settled)
2019
Jan.13	Bill Payable A/c	Dr.		6,000
	To Cash A/c				6,000
	(Being bill collected by bank)