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

Question No 28 Chapter No 16
Question No.28 - Chapter No.16- T.S. Grewal +1 Book 2019-Solution

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Question No 28  Chapter No 16

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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.DebitCredit
2018     
Jan.01Y A/cDr. 4,500 
 To Sales A/c   4,500
 (Being Goods was sold to Y)    
Jan.01Bills Receivable A/c Billno1Dr. 1,000 
 Bills Receivable A/c Billno2Dr. 1,500 
 Bills Receivable A/c Billno3Dr. 2,000 
 To Y A/c   4,500
 (Being Y′s acceptance was received)    
Jan.03Z A/cDr. 1,500 
 To Bills Receivable A/c Billno2   1,500
 (Being Bill Receivable endorsed in favour of Z)    
Jan.04Bills Sent for Collection A/cDr. 2,000 
 To Bills Receivable A/c Billno3   2,000
 (Being Billno3 validity for 3months was dishonoured on due date)    
Feb.04Y A/cDr. 1,010 
 To Bills Receivable A/c Billno1   1,000
 To Cash A/c   10
 (Being Bill dishonoured whose maturity period was 1month)    
Mar.04Y A/cDr. 1,515 
 To Z A/c   1,515
 (Being Bill endorsed to Z dishonoured)    
Apr.04Y A/cDr. 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.DebitCredit
2018     
Jan.01Purchases A/cDr. 4,500 
 To X A/c   4,500
 (Being goods were bought from X)    
Jan.01X A/cDr. 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.04Bills Payable A/c Billno1Dr. 1,000 
 Noting Charges A/cDr. 10 
 To X A/c   1,010
 (Being Bill Payable for 1month was dishonoured)    
Mar.04Bills Payable A/c Billno1Dr. 1,500 
 Noting Charges A/cDr. 15 
 To X   1,515
 (Being Billno2 was no honoured)    
Apr.04Bills Payable A/c Billno3Dr. 2,000 
 Noting Charges A/cDr. 20 
 To X A/c   2,020
 (Being Billsno3 dishonoured)    

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Books of Z
Date  Particulars
L.F.DebitCredit
2018     
Jan.03Bills Receivable A/cDr. 2,000 
 To X A/c   2,000
 (Being Bill Receivable received from X)    
Apr.04X A/cDr. 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

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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

T.S. Grewal’s Double Entry Book Keeping

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