# Question No 38 Chapter No 16 – T.S. Grewal 11 Class

Question No.38- Chapter No.16- T.S. Grewal +1 Book 2019-Solution

Question No 38  Chapter No 16

38. Give the Journal entries for the following:
a B’s acceptance to us for 1,000 due this day, renewed at his request for 3 months with interest @ 6% p.a.
b Our bill to Chandra for 5,000 renewed for 2 months with interest @ 6% p.a.
c B’s acceptance of 3,000 is discharged on his paying us cash 1,000 and accepting a fresh bill for the balance with interest 100.

The solution of Question No 38 Chapter No 16:-

a

 Journal Date Particulars L.F. Debit Credit B A/c Dr. 1,000 To Bills Receivable A/c 1,000 (Being B′s acceptance was cancelled) B A/c Dr. 15 To Interest A/c 15 (Being Interest due from B) Bills Receivable A/c Dr. 1,015 To B A/c 1,015 (Being Interest due from B)

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

Case b The bills met at maturity

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

Working Note:

 Interest = 1,000 X 6 X 3 100 12

Interest = Rs 15

b

 Journal Date Particulars L.F. Debit Credit Bills Payable A/c Dr. 5,000 To C. Chandra 5,000 (Being Bill Payable was cancelled) Interest A/c Dr. 50 To C. Chandra 50 (Being Interest at 6%) C. Chandra A/c Dr. 5,050 To Bills Payable A/c 5,050 (Being new bill drawn by C. Chandra was accepted)

Working Note:

 Interest = 5,000 X 6 X 2 100 12

Interest = Rs 50

c

 Journal Date Particulars L.F. Debit Credit B A/c Dr. 3,000 To Bills Receivable A/c 3,000 (Being B got cancelled his acceptance) Cash A/c Dr. 1,000 To B 1,000 (Being Cash received from B) B A/c Dr. 100 To Interest A/c 100 (Being Interest due to A) Bills Receivable A/c Dr. 2,100 To B A/c 2,100 (Being New bill accepted by B for balance amount including interest)

Bill of exchange (BOE): Meaning and Examples

Comment if you have any question.

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

T.S. Grewal’s Double Entry Book Keeping