Question No 37 Chapter No 15

Question No 37 Chapter No 15

Renewal of Bill

37. X owed Y Rs 6,000 on 1st January 2018. on the same sate, Y drew upon X a bill for the amount for two months and X returned the bill duly acceptance. Y got the bill discounted at his bank at 6%. Before the bill was due for the payment, X told Y that he was not able to pay the full amount and requested Y to accept Rs 2,000 immediately and draw upon him another bill for the remaining amount for two months together with interest at 12% per annum. Y agreed. The second bill was duly met
Give journal entries in the books of X and Y

The solution of Question No 37 Chapter No 15: –

 

In the book of X (Drawee)
Date  Particulars
L.F.DebitCredit
2019     
Jan.1Y A/cDr. 6,000 
 To Bill payable A/c   6,000
 (Being goods purchased on credit .)    
      
Mar.4Bill payable A/cDr. 6,000 
 To Y A/c   6,000
 (Being cancellation of the old bill.)    
      
Mar.4Y A/cDr. 2,000 
 To Cash A/c   2,000
 (Being cash paid .)    
      
Mar.4Y A/cDr. 4,000 
 Interest A/cDr. 40 
 To Bill Payable A/c   4,040
 (Being a new bill accepted in favour of Bimal including interest.)    
      
May.7Bill Payable A/cDr. 4,040 
 To Cash A/c   4,040
 (Being payment of the bill on maturity.)    
     

 

In the book of Y (Drawer)
Date  Particulars
L.F.DebitCredit
2019     
Jan.1Bill Receivable A/cDr. 6,000 
 To X A/c   6,000
 (Being receipt of an acceptance.)    
      
Jan.1Bank A/cDr. 5,950 
 Discount A/cDr. 50 
 To Bill Receivable A/c   6,000
 (Being receipt of an acceptance for one months.)    
      
Mar.4X A/cDr. 6,000 
 To Bank A/c   6,000
 (Being cancellation of the bill.)    
      
Mar.4Cash A/cDr. 2,000 
 To X A/c   2,000
 (Being cash received from Amar.)    
      
Mar.4Bill Receivable A/cDr. 4,040 
 To X A/c   4,000
 To Interest A/c   40
 (Being receipt of the new bill for the amount with interest .)    
      
May.7Cash A/cDr. 4,040 
 To Bill Receivable A/c   4,040
 (Being the amount received on due date .)    
     

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close