Question No 32 Chapter No 15 – USHA Publication 11 Class

Question No 32 Chapter No 15

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

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Chapter No. 1 – Introduction

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)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.