Question No 32 Chapter No 15 - USHA Publication 11 Class

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 Content covered in this article:

The solution of Question No 32 Chapter No 15: –

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

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)