# Question No 20 Chapter No 13 – D.K Goal 11 Class

Q-20 - CH-13 - D.K Goal +1 Book 2020 - Solution

Question No 20 Chapter No 13

Three Bills of Exchange

20. A sold goods to B on 30th October, 2016 for Rs 14,000 and received three bills for Rs 2,000, Rs 4,000 and Rs 8,000 at 2,3 months duration respectively. He kept the first bill till Maturity; endorsed 2nd bill in favour of his creditor C and discounted the third bill on 3rd December, 2016 @18% p.a. the first and 2nd bills were duly met on maturity but the third bill was dishonoured, the bank paying Rs 40 as noting charges. On 3rd March 2017 B paid Rs 3,000 and noting charges in cash and accepted a new bill at 3 months after date for the balance plus Rs 150 as interest. The new bill was met on maturity. Give journal entries in the books of A and B both.

## The solution of Question No 20 Chapter No 13: –

 In the books of A Date Particulars L.F. Debit Credit 2018 Oct.30 B A/c Dr. 14,000 To Sale A/c 14,000 (Being Sold goods to B) Oct.30 Bill Receivable A/c (i) Dr. 2,000 Bill Receivable A/c (ii) Dr. 4,000 Bill Receivable A/c (iii) Dr. 8,000 To B A/c 14,000 (Being three bills drew on B and acceptance received from him.) Oct.30 C A/c Dr. 4,000 To Bill Receivable A/c (ii) 4,000 (Being bill endorsed to C ) Dec.3 Bank A/c Dr. 7,760 Discount A/c Dr. 240 To Bill Receivable A/c 8,000 (Being third bill was discounted by A) Jan.2 Cash A/c Dr. 2,000 To Bill Receivable A/c (i) 2,000 (Being bill received on maturity) Feb.3 Bill Receivable A/c Dr. 8,000 Noting Charges A/c Dr. 40 To noting Charges A/c 8,040 (Being third bill was dishonoured ) Feb.3 Cash A/c Dr. 3,040 To Noting Charges A/c 3,000 To B A/c 40 (Being third bill was dishonoured ) Feb.3 B A/c Dr. 150 To Interest A/c 150 (Being charged interest on B) Feb.3 Bill Receivable A/c (iv) Dr. 5,150 To B A/c 5,150 (Being new bill drawn on harish ) Apr.7 Cash A/c Dr. 5,150 To Bill Receivable A/c (iv) 5,150 (Being bill was mat on maturity)
 In the books of B Date Particulars L.F. Debit Credit 2018 Oct.30 Purchases A/c Dr. 14,000 To A A/c 14,000 (Being purchases goods from A) Oct.30 A A/c Dr. 14,000 To Bill Payable A/c (i) 2,000 To Bill Payable A/c (ii) 4,000 To Bill Payable A/c (iii) 8,000 (Being three bills drew by Satish acceptance by us.) Jan.2 Bill Payable A/c (i) Dr. 2,000 To Cash A/c 2,000 (Being first bill payable paid on maturity) Feb.02 Bill Payable A/c(ii) Dr. 4,000 To Satish A/c 4,000 (Being Bill dishonoured) Mar.04 Bill Payable A/c (iii) Dr. 8,000 A A/c 8,000 (Being third bill was dishonoured ) Mar.04 A  A/c (iii) Dr. 3,000 Noting Charges A/c Dr. 40 To Cash A/c 3,040 (Being Cash paid and noting charges paid to A) Mar.04 A  A/c Dr. 5,150 To Bill Payable A/c (iii) 5,150 (Being bill paid on maturity) Mar.04 Bill Payable A/c (iv) Dr. 5,150 To Cash A/c 5,150 (The being bill was a mat on maturity)

Working Note: –

Calculation of Discounting Charges

 Discounting Charges = 8,000 x 18 X 2 100 12 = Rs 240

Bills Payable Book | Subsidiary Books | Examples

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