Question No 25 Chapter No 16
25. A purchases goods worth 6,200 from B and gives him his acceptance for 6,000 in full satisfaction. B purchases goods worth 10,000 from C and endorses the bill to him, paying the balance by cheque. On maturity the bill is dishonoured, noting charges amounted to 100. Give the Journal entries in the books of A, B and C.
The solution of Question No 25 Chapter No 16: –
Books of A |
|||||
Date | Particulars |
L.F. | Debit | Credit | |
Purchases A/c | Dr. | 6,200 | |||
To B A/c | 6,200 | ||||
(Being Goods were Bought from B) | |||||
B A/c | Dr. | 6,200 | |||
To Bills Payable A/c | 6,000 | ||||
To Discount Received A/c | 200 | ||||
(Being Bill drawn by B accepted and discount allowed by him) | |||||
Bills Payable A/c | Dr. | 6,000 | |||
Discount Received A/c | Dr. | 200 | |||
Noting Charges A/c | Dr. | 100 | |||
To B A/c | 6,300 | ||||
(Being Mahesh ′s acceptance was dishonoured) |
Books of B |
|||||
Date | Particulars |
L.F. | Debit | Credit | |
A A/c | Dr. | 6,200 | |||
To Sales A/c | 6,200 | ||||
(Being goods were bought from Ramesh) | |||||
Bills Receivable A/c | Dr. | 6,000 | |||
Discount Allowed A/c | Dr. | 200 | |||
To A A/c | 6,200 | ||||
(Being B′s acceptance received and discount allowed) | |||||
Purchases A/c | Dr. | 10,000 | |||
To C A/c | 10,000 | ||||
(Being Bill Payable was dishonoured) | |||||
C A/c | Dr. | 10,000 | |||
To Bills Receivable A/c | 6,000 | ||||
To Bank A/c | 4,000 | ||||
(Being Bills Receivable and Cheque is given to C to settle due) | |||||
A A/c | Dr. | 6,300 | |||
To C A/c | 6,100 | ||||
To Discount Allowed A/c | 200 | ||||
(Being Bill accepted by B was dishonoured and C paid Rs 100 as Noting Charges`) |
Books of C |
|||||
Date | Particulars |
L.F. | Debit | Credit | |
B A/c | Dr. | 10,000 | |||
To Sales A/c | 10,000 | ||||
(Being Goods sold to B) | |||||
Bills Receivable A/c | Dr. | 6,000 | |||
Bank A/c | Dr. | 4,000 | |||
To B A/c | 10,000 | ||||
(Being Bill Receivable and Cheque received from B) | |||||
B A/c | Dr. | 6,100 | |||
To Bills Receivable A/c | 6,000 | ||||
To Cash A/c | 100 | ||||
(Being Bills Receivable received from B dishonoured and Rs 100 paid for noting the bill) |
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
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