Question No 33 Chapter No 16 - T.S. Grewal 11 Class

Question No 33 Chapter No 16

33. A sold goods to B on 1st September, 2017 for 16,000. B immediately accepted a 3 months bill. On the due date, B requested that the bill be renewed for a further period of 2 months. An agreed provided interest at 9% p.a. was paid immediately in cash. To this B was agreeable. The second bill was met on the due date. Give the Journal entries in the books of A.

Ads loading…

The solution of Question No 33 Chapter No 16:-

Books of A
Date	Particulars		L.F.	Debit	Credit
2017
Sep.01	B A/c	Dr.		16,000
	To Sales A/c				16,000
	(Being Goods were sold to B)
Sep.01	Bills Receivable A/c	Dr.		16,000
	To B				16,000
	(Being Bills drawn by A was accepted)
Dec.04	B A/c	Dr.		16,000
	To Bills Receivable A/c				16,000
	(Being Bill got cancelled)
Dec.04	B A/c	Dr.		240
	To Interest A/c				240
	(Being Interest due from at 9%)
	Working Note: Interest = 16,000 × 9% × 2/12 = Rs 240
Dec.04	Cash A/c	Dr.		250
	To Interest A/c				250
	(Being Amount for interest ware received from B)
Dec.04	Bills Receivable A/c	Dr.		16,000
	To B				16,000
	(Being B accepted a new bill)
2018
Feb.07	Cash A/c	Dr.		16,000
	To Bills Receivable A/c				16,000
	(Being Payment received on honouring of the bill)

Bill of exchange (BOE): Meaning and Examples

Thanks, Please Like and share with your friends

Comment if you have any question.

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