Question No 29 Chapter No 16 – T.S. Grewal 11 Class

Question No 29 Chapter No 16

Question No 29  Chapter No 16

29. Ram owes 2,000 to Mohan on 1st January 2018. On this date, he accepted a draft for the amount for 3 months. Mohan got the bill discounted at his bank @ 6% p.a. On the due date, the bill was dishonoured, nothing charges 20. Ram agreed to pay 520 immediately and accept another bill for the remaining amount for 3 months together with interest at 9% p.a. This bill was met on the due Tate. Give the Journal entries in the books of both the parties.

The solution of Question No 29 Chapter No 16:-



Books of Mohan
Date   Particulars
L.F. Debit Credit
2018          
Jan.01 Bills Receivable A/c Dr.   2,000  
  To Ram       2,000
  (Being Ram′s acceptance received)        
Jan.01 Bank A/c Dr.   1,970  
  Discount Charges A/c Dr.   30  
  To Bills Receivable A/c       2,000
  (Being Y′s acceptance was received)        
Apr.04 Ram A/c Dr.   2,020  
  To Bank       2,020
  (Being Ram′s acceptance which was discounted with bank dishonoured)        
Apr.04  Cash A/c Dr.   520  
  To Ram       520
  (Being Cash received from Ram)        
Apr.04 Ram Dr.   34  
  To Interest A/c       34
  (Being Interest due from on amount outstanding at 9%)        
  Working Note: Interest = 1,500 × 9% × 3/12 = Rs 34        
Apr.04 Bill Receivable A/c Dr.   1,534  
  To Ram       1,534
  (Being Ram ′acceptance received for an outstanding amount including interest)        
Apr.04 Cash A/c Dr.   2,020  
  To Bills Receivable A/c       2,020
  (Being Cash received on honouring of the bill)        

 

 



Books of Ram
Date   Particulars
L.F. Debit Credit
2018          
Jan.01 Mohan Dr.   2,000  
  To Bills Payable A/c       2,000
  (Being goods were bought from X)        
Apr.04 Bills Payable A/c Dr.   2,000  
  Noting Charges A/c Dr.   20  
  To Mohan       2,020
  (Being Bill dishonoured on its due date)        
Apr.04 Mohan Dr.   520  
  To Cash A/c       520
  (Being Cash paid to Mohan)        
Apr.04 Interest A/c Dr.   34  
  To Mohan       34
  (Being Interest due to Mohan on the outstanding balance for 3months)        
Apr.04 Bills Payable A/c Dr.   1,534  
  To Cash A/c       1,534
  (Being Bill discharged on maturity)        

 

 

 

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

T.S. Grewal’s Double Entry Book Keeping

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