Question No 37 Chapter No 16 – T.S. Grewal 11 Class

Question No 37 Chapter No 16

Question No 37  Chapter No 16

37. ‘B’ being unable to meet his acceptance for 2,000 due on 15th June, approaches the Drawer ‘A’ who is in possession of the bill on 30th June, with the request to receive 800 in cash and draw on him for the balance plus 15 for interest at 3 months date and cancel the old bill for 2,000. ‘A’ agrees to this. Pass the entries in the books of ‘A’ and ‘B’

The solution of Question No 37 Chapter No 16:-



Books of A
Date   Particulars
L.F. Debit Credit
Jun.15 B A/c Dr.   2,000  
  To Bills Receivable A/c       2,000
  (Being B′s acceptance dishonoured)        
Jun.30 Cash A/c Dr.   800  
  To B       800
  (Being Bhola ′s acceptance was received)        
Jun.30 B A/c Dr.   15  
  To Interest A/c       15
  (Being Interest due from B)        
Jun.30 Bills Receivable A/c Dr.   1,215  
  To B A/c       1,215
  (Being Now bill accepted by B together with Interest)        

 


Books of B
Date   Particulars
L.F. Debit Credit
Jun.15 Bills Payable A/c Dr.   2,000  
  To A A/c       2,000
  (Being B′s acceptance dishonoured)        
Jun.30 A  A/c Dr.   800  
  To Cash A/c       800
  (Being Cash paid to A)        
Jun.30 Interest A/c Dr.   15  
  To A       15
  (Being Interest due to A)        
Jun.30 A  A/c Dr.   1,215  
  To Bills Payable A/c       1,215
  (Being Bill drawn by A for balance amount within rest was accepted)        

 

 

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

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T.S. Grewals Double Entry Book Keeping - Question No 37 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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