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

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

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Question No 26  Chapter No 16

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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.DebitCredit
2012     
Jan.01Y A/cDr. 40,000 
 To Sales A/c   40,000
 (Being Good sold to Y)    
Jan.01Bills Receivable A/cDr. 40,000 
 To Y A/c   40,000
 (Being B′s acceptance received and discount allowed)    
Jan.04Bank A/cDr. 39,400 
 Discounting Charges A/cDr. 600 
 To Bills Receivable A/c   40,000
 (Being Bill discounted )    
Apr.04Y 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.04Y A/c **Dr. 1,206 
 To Bank A/c   1,206
 (Being Interest due for three months from Nonrenewal of the bill)    
Apr.04Bills Receivable New A/cDr. 41,406 
 To Y A/c   41,406
 (Being Acceptance received from Y`)    

 

Working Notes:

Calculation of Discount charges=Bills receivableXRateXPeriod of Maturity
10012
40,000X6X3
10012

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= Rs 200

40,.200X12X3
10012

= Rs 1,206

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. Grewal's Double Entry Book Keeping

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