Question No 19 Chapter No 16 - T.S. Grewal 11 Class

Question No 19 Chapter No 16

19. B owes A 4,000. On 1st January 2018, B accepts a 3 months bill for 3,900 being in full settlement of the claim. At its due date, the bill is dishonoured. Nothing charges 50 are paid by A. Give the Journal entries in the books of A and B.

The solution of Question No 19 Chapter No 16: –

Books of A
Date	Particulars		L.F.	Debit	Credit
2017
Jan. 01	Bills Receivable A/c	Dr.		3,900
	Discount Allowed A/c	Dr.		100
	To B A/c				4,000
	(Being B′s acceptance was received)
Apr.04	B A/c	Dr.		4,050
	To Bills Receivable A/c				3,900
	To Discount Allowed A/c				100
	To Cash A/c				50
	(Being B′s acceptance became dishonoured and Noting charges paid Rs 50 )

Books of B
Date	Particulars		L.F.	Debit	Credit
2017
Jan. 01	A A/c	Dr.		4,000
	To Bills Payable A/c				3,900
	To Discount Received A/c				100
	(Being Bill drawn by A was accepted and the discount was received from him )
Apr.04	Bills Payable A/c	Dr.		3,900
	Discount Received A/c	Dr.		100
	Noting Charges A/c	Dr.		50
	To A A/c				4,050
	(Being Bill Payable dishonoured)

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Also, Check out the solved question of previous Chapters: –

- 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