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

Question No 32 Chapter No 16

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

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T.S. Grewals Double Entry Book Keeping - Question No 32 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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