Question No 32 Chapter No 16 - T.S. Grewal 11 Class

Question No 32 Chapter No 16

32. On 1st June 2017 A sold goods to B for 250. B gave A his acceptance payable 1 month after date. Before maturity, B requests A to renew it, which A does add 10 to the new bill for interest. Make the necessary journal entries to record these transactions in the books of both A and B.

The solution of Question No 32 Chapter No 16:-

Books of A
Date	Particulars		L.F.	Debit	Credit
2017
Jan.01	B A/c	Dr.		250
	To Sales A/c				250
	(Being Goods were sold to B)
Jan.01	Bills Receivable A/c	Dr.		250
	To B				250
	(Being Bills drawn by A was accepted)
July 04	B A/c	Dr.		250
	To Bills Receivable A/c				250
	(Being Bill got cancelled)
July 04	B A/c	Dr.		10
	To Interest A/c				10
	(Being Interest due from B on account cancelling the bill)
July 04	Bills Receivable A/c	Dr.		260
	To B A/c				260
	(Being New bill including interest was accepted by B)

Books of B
Date	Particulars		L.F.	Debit	Credit
2017
Jan.01	Purchases A/c	Dr.		250
	To A				250
	(Being goods were bought from A)
Jan.01	A A/c	Dr.		250
	To Bills Payable A/c				250
	(Being Bills drawn by A was accepted)
July 04	Bills Payable A/c	Dr.		250
	To A A/c				250
	(Being Bill got cancelled)
July 04	Interest A/c	Dr.		10
	To A A/c				10
	(Being Interest due to for cancelling the bill)
July 04	A A/c	Dr.		260
	To Bills Payable A/c				260
	(Being New bill including interest drawn by A was accepted)

Bill of exchange (BOE): Meaning and Examples

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

- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book