Question No 18 Chapter No 16 - T.S. Grewal 11 Class

Question No 18 Chapter No 16

18. On 1st January 2018, A drew a bill on B for 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid 50 as noting charges. Record the transactions in the books of A, B and C.

The solution of Question No 18 Chapter No 16: –

Books of R
Date	Particulars		L.F.	Debit	Credit
2017
Jan. 01	Bills Receivable A/c	Dr.		10,000
	To B				10,000
	(Being Bill drawn by S was accepted)
Jan. 11	C A/c	Dr.		10,000
	To Bills Receivable A/c				10,000
	(Being B′s acceptance endorsed in favor of C)
Apr.04	B A/c	Dr.		10,050
	To C A/c				10,050
	(Being Bill endorsed in favor of C was dishonoured and C paid Rs 50 Noting Charges )

Books of B
Date	Particulars		L.F.	Debit	Credit
2017
Jan. 01	A A/c	Dr.		10,000
	To Bills Payable A/c				10,000
	(Being Bill drawn by A was accepted)
Apr.04	Bills Payable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		50
	To A A/c				10,050
	(Being Bill Payable dishonoured)

Books of B
Date	Particulars		L.F.	Debit	Credit
2017
Jan.11	Bills Receivable A/c	Dr.		10,000
	To A				10,000
	(Being Bill drawn by A was accepted)
Apr.04	A A/c	Dr.		10,050
	To Bills Receivable A/c				50
	To A A/c				10,000
	(Being Bill Receivable received from A became dishonoured and Noting Charge paid Rs50)

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