Question No 28 Chapter No 16 - T.S. Grewal 11 Class

Question No 28 Chapter No 16

28. On 1st January 2018, Mr X sold goods to Mr Y for 4,500 on credit and drew 3 bills on him the first bill for 1,000 for 1 month, the second bill for 1,500 for 2 months and third bill for 2,000 for 3 months. Mr Y accepted and returned all the bills to Mr X. The first bill was retained by Mr X till the date of maturity. The second bill was endorsed to his creditor Mr Z on 3rd January 2018 and the third bill was sent to the bank for collection on 4th January 2017. On maturity, all the bills were dishonoured and noting charges amount to 10, 15 and 20 respectively. Give the Journal entries in the books of X, Y and Z.

The solution of Question No 28 Chapter No 16:-

Books of X
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	Y A/c	Dr.		4,500
	To Sales A/c				4,500
	(Being Goods was sold to Y)
Jan.01	Bills Receivable A/c Billno1	Dr.		1,000
	Bills Receivable A/c Billno2	Dr.		1,500
	Bills Receivable A/c Billno3	Dr.		2,000
	To Y A/c				4,500
	(Being Y′s acceptance was received)
Jan.03	Z A/c	Dr.		1,500
	To Bills Receivable A/c Billno2				1,500
	(Being Bill Receivable endorsed in favour of Z)
Jan.04	Bills Sent for Collection A/c	Dr.		2,000
	To Bills Receivable A/c Billno3				2,000
	(Being Billno3 validity for 3months was dishonoured on due date)
Feb.04	Y A/c	Dr.		1,010
	To Bills Receivable A/c Billno1				1,000
	To Cash A/c				10
	(Being Bill dishonoured whose maturity period was 1month)
Mar.04	Y A/c	Dr.		1,515
	To Z A/c				1,515
	(Being Bill endorsed to Z dishonoured)
Apr.04	Y A/c	Dr.		2,020
	To Bills Receivable A/c Billno1				2,000
	To Bank A/c				20
	(Being Bill which had sent to the bank for collection now dishonoured and the bank paid noting charges)

Books of Y
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	Purchases A/c	Dr.		4,500
	To X A/c				4,500
	(Being goods were bought from X)
Jan.01	X A/c	Dr.		4,500
	To Bills Payable A/c Billno1				1,000
	To Bills Payable A/c Billno2				1,500
	To Bills Payable A/c Billno3				2,000
	(Being Three bill drawn by X were accepted)
Feb.04	Bills Payable A/c Billno1	Dr.		1,000
	Noting Charges A/c	Dr.		10
	To X A/c				1,010
	(Being Bill Payable for 1month was dishonoured)
Mar.04	Bills Payable A/c Billno1	Dr.		1,500
	Noting Charges A/c	Dr.		15
	To X				1,515
	(Being Billno2 was no honoured)
Apr.04	Bills Payable A/c Billno3	Dr.		2,000
	Noting Charges A/c	Dr.		20
	To X A/c				2,020
	(Being Billsno3 dishonoured)

Books of Z
Date	Particulars		L.F.	Debit	Credit
2018
Jan.03	Bills Receivable A/c	Dr.		2,000
	To X A/c				2,000
	(Being Bill Receivable received from X)
Apr.04	X A/c	Dr.		1,515
	To Bills Receivable A/c				1,500
	To Bank A/c				15
	(Being Bill received from X was dishonoured)

Bill of exchange (BOE): Meaning and Examples

Thanks, Please Like and share with your friends

Advertisement-X

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