Question No 20 Chapter No 16 - T.S. Grewal 11 Class

Question No 20 Chapter No 16

20. Y owes X 4,000. On 1st January 2017, Y accepts a 3 months bill for 3,900 in satisfaction of his full claim. On the same date, it was endorsed by X to Z in satisfaction of his claim of 3,980. The bill is dishonoured on the due date. Give the Journal entries in the books of X

The solution of Question No 20 Chapter No 16: –

Books of X
Date	Particulars		L.F.	Debit	Credit
2017
Jan. 01	Bills Receivable A/c	Dr.		3,900
	Discount Allowed A/c	Dr.		100
	To Y A/c				4,000
	(Being B′s acceptance was received)
Jan.01	Z A/c	Dr.		3,980
	To Bills Receivable A/c				3,900
	To Discount Received A/c				80
	(Being Y’s acceptance endorsed in favour of Z and discount received )
Apr.04	Y A/c	Dr.		4,000
	Discount Received A/c	Dr.		80
	To Z A/c				3,980
	To Discount Allowed A/c				100
	(Being Y’s acceptance was endorsed to Z, now dishonoured)

Bill of exchange (BOE): Meaning and Examples

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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