# Question No 26 Chapter No 16 – T.S. Grewal 11 Class

Question No.26 - Chapter No.16- T.S. Grewal +1 Book 2019-Solution

Question No 26  Chapter No 16

26. X sells goods for 40,000 to Y on 1st January 2012 and on the same day draws a bill on Y at three months for the amount. Y accepts it and returns it to X, who discounted it on 4th January 2018 with his bank at 6% p.a. The acceptance is dishonoured on the due date and the noting charges were paid by the bank is 200. On 4th April 2018, Y accepts a new bill at three months for the amount then due to X together with interest at 12% p.a. Make Journal entries to record these transactions in the books of X.

The solution of Question No 26 Chapter No 16: –

 Books of A Date Particulars L.F. Debit Credit 2012 Jan.01 Y A/c Dr. 40,000 To Sales A/c 40,000 (Being Good sold to Y) Jan.01 Bills Receivable A/c Dr. 40,000 To Y A/c 40,000 (Being B′s acceptance received and discount allowed) Jan.04 Bank A/c Dr. 39,400 Discounting Charges A/c Dr. 600 To Bills Receivable A/c 40,000 (Being Bill discounted ) Apr.04 Y A/c * Dr. 40,200 To Bank A/c 40,200 (Being Bill dishonoured and noting charges of Rs 200 paid by the bank) Apr.04 Y A/c ** Dr. 1,206 To Bank A/c 1,206 (Being Interest due for three months from Nonrenewal of the bill) Apr.04 Bills Receivable New A/c Dr. 41,406 To Y A/c 41,406 (Being Acceptance received from Y`)

Working Notes:

 Calculation of Discount charges = Bills receivable X Rate X Period of Maturity 100 12
 40,000 X 6 X 3 100 12

= Rs 200

 40,.200 X 12 X 3 100 12

= Rs 1,206

Bill of exchange (BOE): Meaning and Examples

Comment if you have any question.

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

T.S. Grewal’s Double Entry Book Keeping