Question No 31 Chapter No 15 - USHA Publication 11 Class

Question No 31 Chapter No 15

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The solution of Question No 31 Chapter No 15: –

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

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

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(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.	Debit	Credit
(c)
	Bank A/c	Dr.		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.	Debit	Credit

(a)	B A/c	Dr.		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/c	Dr.		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/c	Dr.		1,050
	To Bank for collection A/c				1,000
	To Bank 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.	Debit	Credit
2018
Jan.1	Bill receivable A/c	Dr.		3,100
	To Ganesh A/c				3,100
	(Being the receipts of an acceptance)

Jan.1	Bank A/c	Dr.		3,038
	Discount A/c	Dr.		62
	To Bills receivable A/c				3,100
	(Being the bill discounted with bank)