Question No 33 Chapter No 15 – USHA Publication 11 Class

Question No 33 Chapter No 15

Question No 33 Chapter No 15

Renewal of Bill

33. Before the due date of bill for Rs 3,000
(a)X, the acceptance approaches us and pays Rs 1,000 in cash and asks us to draw on him another bill of Rs 2,150, Rs 150 being interest and we agree to it:
(b)X pays us Rs 25 of interest and we draw another bill of the full amount which he accept:
(c)C pays Rs 1,150 and accepts another bill of Rs 2,000
(d)X pays us Rs 1,000 in cash and endorses over to us bill of his for Rs 750 and we draw on him a fresh bill for him for the balance plus Rs 20 of interest
Pass the necessary journal entries to record the above transaction in our book.

The solution of Question No 33 Chapter No 15: –

 

Journal
Date   Particulars
L.F. Debit Credit
(a) X A/c Dr.   3,000  
  To Bill Receivable A/c       3,000
  (Being the cancellation of old bill.)        
           
  Cash A/c Dr.   1,000  
  To X A/c       1,000
  (Being cash received from X.)        
           
  Bill Receivable A/c Dr.   2,000  
  Cash A/c Dr.   150  
  To X A/c       2,150
  (Being new bill draw on X with interest.)        
           
(b) X A/c Dr.   3,000  
  To Bill Receivable A/c       3,000
  (Being the cancellation of old bill.)        
           
  Cash A/c Dr.   25  
  To Interest A/c       25
  (Being interest paid in cash.)        
           
  Bill Receivable A/c Dr.   3,000  
  To X A/c       3,000
  (Being new receipt of the new bill.)        
           
(C) X A/c Dr.   3,000  
  To Bill Receivable A/c       3,000
  (Being the cancellation of the old bill.)        
           
  X A/c Dr.   1,150  
  To Bill Receivable A/c       1,000
  To Interest A/c       150
  (Being the cancellation of the old bill.)        
           
  Bill Receivable A/c Dr.   2,000  
  To X A/c       2,000
  (Being new receipt of the new bill.)        
           
(d) X A/c Dr.   3,000  
  To Bill Receivable A/c       3,000
  (Being the cancellation of the old bill.)        
           
  Cash A/c Dr.   1,000  
  To X A/c       1,000
  (Being the cancellation of the old bill.)        
           
  Bill Receivable A/c Dr.   750  
  To X A/c       750
  (Being the receipt of bill duly endorsed by X received.)        
           
  Bill Receivable A/c Dr.   1,270  
  To X A/c       1,250
  To Interest A/c       20
  (Being receipt of the new bill for the balancing including interest.)        
         

 

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. 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)

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