Question No 25 Chapter No 16 – T.S. Grewal 11 Class

Question No 25 Chapter No 16

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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T.S. Grewals Double Entry Book Keeping - Question No 25 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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