Question No 36 Chapter No 15

Question No 36 Chapter No 15

Renewal of Bill

36. Amar purchased goods worth of Rs 1,000 from Bimal of an.1,2019 and accepted a bill for one month drawn by Bimal for the same. Being Bimal unable to meet the bill on the due date, Amar requested Bimal to accept cash Rs 250 and draw a new bill for 2 months for the balance plus interest of Rs 10. Bimal accepted the proposal and drew on Amar another bill. The bill was duly met on the due date
Pass journal entries in the book of both the parties.

The solution of Question No 36 Chapter No 15: –

 

In the book of Amar(Drawee)
Date  Particulars
L.F.DebitCredit
2019     
Jan.1Purchases A/cDr. 1,000 
 To Bimal A/c   1,000
 (Being goods purchased on credit .)    
      
Jan.1Bimal A/cDr. 1,000 
 To Bill payable A/c   1,000
 (Being our acceptance given to B for 1 month.)    
      
Feb.4Bill payable A/cDr. 1,000 
 To Bimal A/c   1,000
 (Being cancellation of the old bill.)    
      
Feb.4Bimal A/cDr. 250 
 To Cash A/c   250
 (Being cash paid .)    
      
Feb.4Bimal A/cDr. 750 
 Interest A/cDr. 10 
 To Bill Payable A/c   760
 (Being a new bill accepted in favour of Bimal including interest.)    
      
Apr.4Bill Payable A/cDr. 760 
 To Cash A/c   760
 (Being payment of the bill on maturity.)    
     

 

In the book of Bimal (Drawer)
Date  Particulars
L.F.DebitCredit
2019     
Jan.1Amar A/cDr. 1,000 
 To Sale A/c   1,000
 (Being goods sold to A on credit .)    
      
Jan.1Bill Receivable A/cDr. 1,000 
 To Amar A/c   1,000
 (Being our acceptance given to B for 2 months.)    
      
Feb.4Amar A/cDr. 1,000 
 To Bill Receivable A/c   1,000
 (Being cancellation of the old bill.)    
      
Feb.4Cash A/cDr. 250 
 To Amar A/c   250
 (Being amount of interest received.)    
      
Feb.4Bill Receivable A/cDr. 760 
 To Amar A/c   750
 To Interest A/c   10
 (Being receipt of the new bill for the amount with interest .)    
      
Apr.7Cash A/cDr. 760 
 To Bill Receivable A/c   760
 (Being the amount received on 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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