Question No 24 Chapter No 16 - T.S. Grewal 11 Class

Question No 24 Chapter No 16

24. On 1st January 2018 for goods sold, Ramesh drew a Bill of Exchange on Mahesh for 4,000, for a period of 3 months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh who in turn endorses it to Suresh on 1st February 2018. The bill is then discounted by Suresh on the same date with his banker at 5% p.a. On the due date, the bill is dishonoured. Pass the necessary Journal entries in the books of all the four parties.

The solution of Question No 24 Chapter No 16: –

Books of Ramesh
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	Mahesh A/c	Dr.		4,000
	To Sales A/c				4,000
	(Being Goods were sold to Mahesh)
Jan.01	Bills Receivable A/c	Dr.		4,000
	To Mahesh				4,000
	(Being Mahesh ′s acceptance was received)
Jan.01	Mukesh A/c	Dr.		4,000
	To Bills Receivable A/c				4,000
	(Being B′s acceptance dishonoured)
Apr.04	Mahesh A/c			4,000
	To Mukesh A/c				4,000
	(Being Mahesh ′s acceptance was dishonoured)

Books of Mahesh
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	Purchases A/c	Dr.		4,000
	To Ramesh A/c				4,000
	(Being goods were bought from Ramesh)
Jan.01	Ramesh A/c	Dr.		4,000
	To Bills Payable A/c				4,000
	(Being Bill drawn by Ramesh was accepted)
Jan.01	Bills Payable A/c	Dr.		4,000
	To Ramesh A/c				4,000
	(Being Bill Payable was dishonoured)

Books of Mukesh
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	Bills Receivable A/c	Dr.		4,000
	To Ramesh A/c				4,000
	(Being Bill received from Ramesh)
Feb.01	Suresh A/c	Dr.		4,000
	To Bills Receivable A/c				4,000
	(Being Bills which had received from Suresh endorsed to Suresh
Apr. 04	Ramesh A/c	Dr.		4,000
	To Suresh A/c				4,000
	(Being Bill received from Ramesh was dishonoured)

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Books of Suresh
Date	Particulars		L.F.	Debit	Credit
2018
Feb.01	Bills Receivable A/c	Dr.		4,000
	To Mukesh A/c				4,000
	(Being B′s acceptance was received)
Feb.01	Bank A/c	Dr.		3,967
	Discount Charges A/c	Dr.		33
	To Bills Receivable A/c				1,000
	(Being Bills which had received from Suresh endorsed to Suresh
Apr.04	Mukesh A/c	Dr.		4,000
	To Bank A/c				4,000
	(Being B′s acceptance dishonoured)

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