Question No 27 Chapter No 16 – T.S. Grewal 11 Class

Question No 27 Chapter No 16

Question No 27  Chapter No 16

27. On 1st January 2018, X received from Y three Bills of Exchange for 6,000; 8,000; and 10,000 for 6 months, 4 months and 3 months respectively. On 3rd January the first bill was discounted by X with his bankers at a discount of 5% p.a. On 1st February the 3rd bill was endorsed in favour of a creditor Z. The second bill was retained until the due date. On due dates, all the three bills were dishonoured. Show the necessary Journal entries in the books of X and Y.

The solution of Question No 27 Chapter No 16:-



Books of X
Date   Particulars
L.F. Debit Credit
2018          
Jan.01 Bills Receivable A/c Billno1 Dr.   6,000  
  Bills Receivable A/c Billno2 Dr.   8,000  
  Bills Receivable A/c Billno3 Dr.   10,000  
  To Y A/c       24,000
  (Being Y′s acceptance was received)        
Jan.03 Bank A/c Dr.   5,850  
  Discount Charges A/c Dr.   150  
  To Y A/c       6,000
  (Being Billno1 validity for 6months was discounted with the bank at 5%)        
Feb.01 Z A/c Dr.   10,000  
  To Bills Receivable A/c Billno3       10,000
  (Being Bill discounted )        
Apr.04 Y A/c  Dr.   10,000  
  To Z A/c       10,000
  (Being Billno3 validity for 3months was dishonoured on due date)        
May 04 Y A/c  Dr.   8,000  
  To Bills Receivable A/c Billno2       8,000
  (Being Billno2 validity for 4 months was dishonoured on due date)        
July 04 Y A/c Dr.   6,000  
  To Bank A/c       6,000
  (Being Billno1 validity for 6 months was dishonoured on due date)        

 

 



Books of Y
Date   Particulars
L.F. Debit Credit
2018          
Jan.01 X A/c Dr.   24,000  
  To Bills Payable A/c Billno1       6,000
  To Bills Payable A/c Billno2       8,000
  To Bills Payable A/c Billno3       10,000
  (Being Three bill drawn by X were accepted)        
Apr. 04 Bills Payable A/c Billno3 Dr.   10,000  
  To X A/c       10,000
  (Being Billno3 was no honoured)        
May 04 Bills Payable A/c Billno2 Dr.   8,000  
  To X       8,000
  (Being Billno2 was no honoured)        
July 04 Bills Payable A/c Billno1 Dr.   6,000  
  To X A/c       6,000
  (Being Billno3 was no honoured)        

 

 

 

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 27 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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