Question No 20 Chapter No 14 – Class 11 Unimax

20. Ram owes ₹ 2,000 to Mohan on 1st January 2020. On this date, he accepted a draft for the amount for 3 months. Mohan got the bill discounted at his bank @ 6%. On the due date, the bill was dishonored noting charges ₹ 20. Ram agreed to pay ₹ 520 immediately and accept another bill for the remaining amount for 3 months together with interest at 9% p.a. this bill was met on the due date. Give journal entries in the books of the parties.

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The solution of Question No 20 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 20 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘Mohan’ (Drawer)
Date	Particulars		L.F.	Debit	Credit
2020
Jan. 1	Bill Receivable A/c	Dr.		2,000
	To Ram’s A/c				2,000
	(Being the bill 3 months drawn and accepted)

Jan. 1	Bank A/c	Dr.		1,970
	Discount A/c	Dr.		30
	To Bill receivable A/c				2,000
	(Being the bill dishonoured from @ 16% p.a.)

Apr. 4	Ram’s A/c	Dr.		2,020
	To Bill receivable A/c				2,000
	To Cash A/c				20
	(Being the bill dishonoured and ₹ 20 paid as noting charges)

Apr. 4	Cash A/c	Dr.		520
	To Ram A/c				520
	(Being cash received from Mr. Ram)

Apr. 4	Bill receivable A/c			1,534
	To Ram’s A/c				1,500
	To Interest A/c				34
	(Being a new bill for 3 months with interest @ 9% p.a. drawn and accepted)

July 7	Cash A/c	Dr.		1,534
	To Bill receivable A/c				1,534
	(Being the bill met on due date)

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Journal for Mr. ‘Ram’ (Drawee)
Date	Particulars		L.F.	Debit	Credit
2020
Jan. 1	Mohan A/c	Dr.		2,000
	To Bill payable A/c				2,000
	(Being bill for 3 months accepted and returned)

Apr.4	Bill payable A/c	Dr.		2,000
	Nothing charges A/c	Dr.		20
	To Mohan A/c				2,020
	(Being the bill dishonoured on due date)

Apr.4	Mohan A/c	Dr.		520
	To Cash A/c				520
	(Being cash paid to Mohan)

Apr.4	Mohan A/c	Dr.		1,500
	Interest A/c	Dr.		34
	To Bill receivable A/c				1,530
	(Being a new bill for 3 months with interest @ 9% p.a. accepted and returned)

July 7	Bills payable A/c	Dr.		1,534
	To Cash A/c				1,534
	(Being own acceptance met on due date)

Read out the full article to know the meaning of Cash Book

Bill of exchange (BOE): Meaning and Examples

Also, Check out the same article in Hindi from the following link

Bill of exchange (BOE): Meaning and Examples

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

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

Chapter No. 1 – Introduction of Accounting
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and Transactions
Chapter No. 4 – Journal
Chapter No. 5 – Goods and Services Tax (GST): An Introduction
Chapter No. 6 – Ledger
Chapter No. 7 – Special Purpose Book – Cash Book
Chapter No. 8 – Other Subsidiary Books
Chapter No. 9 – Trial Balance
Chapter No. 10 – Rectification of Errors
Chapter No. 11 – Depreciation
Chapter No. 12 – Provision and Reserves
Chapter No. 13 – Bank Reconciliation Statement
Chapter No. 14 – Bills of Exchange

Students may choose only one part from the Part II and Part III

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Part-II

Chapter No. 15 – Financial Statements (Without Adjustments)
Chapter No. 16 – Financial Statements (With Adjustments)
Chapter No. 17 – Accounts from Incomplete Records – Single Entry System

Part-III

Chapter No. 18 – Introduction to Computers and Accounting information System
Chapter No. 19 – Computerised Accounting
Chapter No. 20 – Accounting Software: Tally
Chapter No. 21 – Data Base System
Chapter No. 22 – Concept of Entity and Relationship

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