Question No 31 Chapter No 15

Question No 31 Chapter No 15

Dishonour of Bill

31. As receives three bills from B date 1st January 2018 for Rs 1,000 each payable after one month, two months and three months respectively. He endorses a bill payable after one month to C in the full and final settlement of C’s claim for Rs 1,040. bill payable after two months is discounted with the bank for Rs 950. bill payable after three months is sent to the bank for collection.
Pass journal entries in the book of A, Assuming:
(i)Bill are paid on Maturity; and (ii)Bill are dishonoured and noting charges amounted to Rs 50

The solution of Question No 31 Chapter No 15: –

(i) Bill are paid on Maturity

(a) No entry is passed in the book of A on maturity if the bill is endorsed to C
(b) No entry is passed in the book in the books of A on maturity if the bill is discounted with the bank

 
Date  Particulars
L.F.DebitCredit
(c)     
 Bank A/cDr. 1,000 
 To Bank for collection A/c   1,000
 (Being the amount received by the bank on a collection of bill.)    
     

(ii) Bill is dishonoured and noting charges amounted to Rs 50

 
Date  Particulars
L.F.DebitCredit
      
(a)B A/cDr. 1,050 
 To C A/c   1,050
 (Being dishonour of bill endorsed to C. nothing charges Rs 50 paid by him.)    
      
(b)B A/cDr. 1,050 
 To Bank A/c   1,050
 (Being dishonour of bill discounted with the bank, nothing charges Rs 50 paid by the bank)    
      
(c)B A/cDr. 1,050 
 To Bank for collection A/c   1,000
 To Narendra A/c   50
 (Being dishonoured of a bill sent to the bank for collection. Noting charges Rs 50 paid by the bank )    
     

 

In the books of Mahesh(endorsee)
Date  Particulars
L.F.DebitCredit
2018     
Jan.1Bill receivable A/cDr. 3,100 
 To Ganesh A/c   3,100
 (Being the receipts of an acceptance)    
      
Jan.1Bank A/cDr. 3,038 
 Discount A/cDr. 62 
 To Bills receivable A/c   3,100
 (Being the bill discounted with bank)    
     

 

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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