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Question No 36 Chapter No 16 – T.S. Grewal 11 Class

Question No 36 Chapter No 16
Question No.36- Chapter No.16- T.S. Grewal +1 Book 2019-Solution

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Question No 36  Chapter No 16

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36. Amar sells goods to Bhola for 10,000 and draws upon him a bill for the amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bankers at a discount of 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his banker and his expenses amounting to 100. Bhola gives a fresh bill, 2 months’ date to Amar for 10,250, which he met at maturity. Show the necessary Journal entries in Amar’s books.

The solution of Question No 36 Chapter No 16:-



Books of Amar
Date  Particulars
L.F.DebitCredit
 BholaDr. 10,000 
 To Sales A/c   10,000
 (Being Goods were sold to Bhola)    
 Bills Receivable A/cDr. 10,000 
 To Bhola   10,000
 (Being Bhola ′s acceptance was received)    
 Bank A/cDr. 9,850 
 Discount Charges A/cDr. 150 
 To Bank A/c   10,000
 (Being A′s acceptance dishonoured)    
 BholaDr. 400 
 To Bank A/c   400
 (Being Bhola ′s acceptance declared dishonoured)    
 Bank A/cDr. 400 
 To Cash A/c   400
 (Being Payment made to bank with noting charges for dishonouring of the bill )    
 BholaDr. 150 
 To Interest A/c   150
 (Being Interest due from Bhola for on account of bill dishonour)    
 Bills Receivable A/cDr. 400 
 To Bhola   400
 (Being New bill accepted by Bhola for the amount due including rating charges and interest)    
 Cash A/cDr. 10,250 
 To Bills Receivable A/c   10,250
 (Being Amount received)    

 


Books of A
Date  Particulars
L.F.DebitCredit
 B A/cDr. 400 
 To Bills Payable A/c   400
 (Being Bill drawn by A was accepted)    
 Bills Payable A/cDr. 400 
 To B   400
 (Being Bill drawn by B was dishonoured on maturity)    

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Case b The bills met at maturity



Books of B
Date  Particulars
L.F.DebitCredit
 Bills Receivable A/cDr. 400 
 To Sales A/c   400
 (Being A′s acceptance was received)    
 Bank A/cDr. 380 
 Discount Charges A/cDr. 20 
 To Bills Receivable A/c   400
 (Being A′s acceptance was discounted with the bank)    

 

 


Books of A
Date  Particulars
L.F.DebitCredit
 B A/cDr. 400 
 To Bills Payable A/c   400
 (Being Bill drawn by A was accepted)    
 Bills Payable A/cDr. 400 
 To Cash A/c   400
 (Being Bill drawn by B was dishonoured on maturity)    

 

Case c If the bill is retired under rebate at 6% p.a. 2 months before its maturity

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Books of B
Date  Particulars
L.F.DebitCredit
 Bills Receivable A/cDr. 400 
 To Sales A/c   400
 (Being A′s acceptance was received)    
 Bank A/cDr. 396 
 Rebate A/cDr. 4 
 To Bills Receivable A/c   400
 (Being payment received 2 months before its maturity and giver bate)    


Working Note:

 

Calculation of Discount charges=Bills receivableXRateXPeriod of Maturity
10012

 

 =400 X6X2
10012
       

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= Rs 4


Books of A
Date  Particulars
L.F.DebitCredit
 B A/cDr. 400 
 To Bills Payable A/c   400
 (Being Bill drawn by A was accepted)    
 Bills Payable A/cDr. 400 
 To Cash A/c   396
 To Rebate A/c   4
 (Being payment received 2 months before its maturity and giver bate)    

 

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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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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