Question No 35 Chapter No 15

Question No 35 Chapter No 15

Renewal of Bill

35. On 1st April 2019. A purchased goods worth Rs 1,000 from B and accepted a bill of exchange for the amount for 2 months. On the 4th April, B got the bill discounted by his bankers for Rs 985. before due date, A approached B with a request of renewal of the bill for another two months. B consented on the condition that the new bill will including rs 20 as interest. The second bill was duly met
Pass the journal entries in both the parties.

The solution of Question No 35 Chapter No 15: –

 

In the book of A(Drawee)
Date  Particulars
L.F.DebitCredit
2019     
Apr.1Purchases A/cDr. 1,000 
 To B A/c   1,000
 (Being goods purchased on credit .)    
      
Apr.1B A/cDr. 1,000 
 To Bill payable A/c   1,000
 (Being our acceptance given to B for 2 months.)    
      
Jun.4Bill payable A/cDr. 1,000 
 To B A/c   1,000
 (Being cancellation of the old bill.)    
      
Jun.4B A/cDr. 1,020 
 To Bill payable A/c   1,020
 (Being amount of interest received.)    
      
Aug.7Bill payable A/cDr. 1,020 
 To Cash A/c   1,020
 (Being the payment of the bill on the due date .)    
     

 

In the book of B(Drawer)
Date  Particulars
L.F.DebitCredit
2019     
Apr.1A A/cDr. 1,000 
 To Sale A/c   1,000
 (Being goods sold to A on credit .)    
      
Apr.1Bill Receivable A/cDr. 1,000 
 To A A/c   1,000
 (Being our acceptance given to B for 2 months.)    
      
Jun.4A A/cDr. 1,000 
 To Bill Receivable A/c   1,000
 (Being cancellation of the old bill.)    
      
Jun.4Bill Receivable A/cDr. 1,020 
 To Interest A/c   20
 To A A/c   1,000
 (Being amount of interest received.)    
      
Aug.7Cash A/cDr. 1,020 
 To Bill Receivable A/cQuestion No 35 Chapter No 15 – USHA Publication 11 Class   1,020
 (Being the payment of the bill on the due date .)    
     

 

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: –

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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