Question No 34 Chapter No 15 - USHA Publication 11 Class

Question No 34 Chapter No 15

Table of Contents

The solution of Question No 34 Chapter No 15: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Renewal of Bill

34. Deepak sold goods to Gupta on 1st September 2018 for Rs 20,000. Gupta immediately acceptance a bill for 3 months. On the due date, Gupta required that the bill be renewed for a further period of 2 months. Deepak agreed interest at 9% p.a. was immediately paid in cash. To this arrangement, Gupta agree. The second bill was met on the due date. Give journal entries in the book of Deepak.

The solution of Question No 34 Chapter No 15: –

In the book of Deepak
Date	Particulars		L.F.	Debit	Credit
2018
Sep.1	Gupta A/c	Dr.		20,000
	To Sale A/c				20,000
	(Being goods sold to Gupta on credit .)

Sep.1	Bill Receivable A/c	Dr.		20,000
	To Gupta A/c				20,000
	(Being receipt of an acceptance from the Gupta for 3 months.)

Dec.4	Gupta A/c	Dr.		20,000
	To Bill Receivable A/c				20,000
	(Being cancellation of the bill.)

Dec.4	Cash A/c	Dr.		300
	To Interest A/c				300
	(Being amount of interest received.)

Dec.4	Bill Receivable A/c	Dr.		20,000
	To Gupta A/c				20,000
	(Being n receipts of new bill from Gupta for 2 months.)
2019
Feb.7	Cash A/c	Dr.		20,000
	To Bill Receivable A/c				20,000
	(Being amount received on the maturity of the bill.)