Question No 3 Chapter No 16 - T.S. Grewal 11 Class

Question No 3 Chapter No 16

3. On 1st January 2018, A sold goods to B for 5,000 plus IGST @ 18%. A received 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On the due date, the bill was paid. Pass Journal entries in the books of A and B. Also show necessary accounts in the books of both the parties.

The solution of Question No 3 Chapter No 16: –

In the books of A
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	B A/c	Dr		5,900
	To Sales A/c				5,000
	To Output IGST A/c				900
	(Being goods sold plus IGST @18 )
Jan.01	Bills Receivable A/c	Dr.		5,000
	Bank A/c			900
	To B’s A/c				5,900
	(Being Bill received )
Apr.04	Cash A/c	Dr.		5,000
	To Bills Receivable A/c				5,000
	(Being Cash received against the bill )

In the books of B
Date	Particulars		L.F.	Debit	Credit
2018
Jan.01	Purchases A/c	Dr		5,000
	Input IGST A/c	Dr		900
	To A A/c				5,900
	(Being goods bought plus IGST @18 )
Mar 10	A A/c	Dr.		5,900
	To Bills Payable A/c				5,000
	To Bank A/c				900
	(Being Bill accepted )
Apr.04	Bills Payable A/c	Dr.		5,000
	To Cash A/c				5,000
	(Being Cash paid against the bill )

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