Question No 32 Chapter No 15
Dishonour of Bill
32. A owed B Rs 4,000. A accepted a bill of exchange on 1st Jan,2018 at three months date for this amount which B discount which B discounted for Rs 3,800
Give journal entries in the book of A and B, f this bill is:
(i)Dishonoured on the due date;
(ii)Met at maturity
(iii)Retained under rebate 6% p.a. two months before its maturity.
The solution of Question No 32 Chapter No 15: –
| In the book of B(Drawer) | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| (i) | A A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being dishonoured of the discounted bill on due date.) | |||||
(ii) No entry is passed in the books of B if the discounted bill is met at Maturity
(iii) No entry is passed in the books of B if the discounted bill is retired by A under a rebate at 6% p.a. two months before maturity.
| In the book of A(Drawee) |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| (i) | Bill payable A/c | Dr. | 4,000 | ||
| To B A/c | 4,000 | ||||
| (Being the dishonour of the bill at maturity.) | |||||
| (ii) | Bill payable A/c | Dr. | 4,000 | ||
| To Cash A/c | 4,000 | ||||
| (Being the payment of the bill on the due date ) | |||||
| (iii) | Bill payable A/c | Dr. | 4,000 | ||
| To Cash A/c | 1,000 | ||||
| To Rebate A/c | 50 | ||||
| (Being bill retired under rebate at 6+% p.a two months before maturity) | |||||
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: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)