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.

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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

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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