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

Question No 29 Chapter No 16
Question No.29 - Chapter No.16- T.S. Grewal +1 Book 2019-Solution

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Question No 29  Chapter No 16

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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.DebitCredit
2018     
Jan.01Bills Receivable A/cDr. 2,000 
 To Ram   2,000
 (Being Ram′s acceptance received)    
Jan.01Bank A/cDr. 1,970 
 Discount Charges A/cDr. 30 
 To Bills Receivable A/c   2,000
 (Being Y′s acceptance was received)    
Apr.04Ram A/cDr. 2,020 
 To Bank   2,020
 (Being Ram′s acceptance which was discounted with bank dishonoured)    
Apr.04 Cash A/cDr. 520 
 To Ram   520
 (Being Cash received from Ram)    
Apr.04RamDr. 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.04Bill Receivable A/cDr. 1,534 
 To Ram   1,534
 (Being Ram ′acceptance received for an outstanding amount including interest)    
Apr.04Cash A/cDr. 2,020 
 To Bills Receivable A/c   2,020
 (Being Cash received on honouring of the bill)    

 

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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