Advertisement

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

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

Advertisement

Question No 38  Chapter No 16

Advertisement

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.DebitCredit
 B A/cDr. 1,000 
 To Bills Receivable A/c   1,000
 (Being B′s acceptance was cancelled)    
 B A/cDr. 15 
 To Interest A/c   15
 (Being Interest due from B)    
 Bills Receivable A/cDr. 1,015 
 To B A/c   1,015
 (Being Interest due from B)    

Advertisement-X

 


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)    

 

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)    

 

Working Note:

 

Interest

=1,000 X6X3
10012

Advertisement-X

Interest = Rs 15

b


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

 

Working Note:

Interest=5,000 X6X2
10012

Advertisement-Y

Interest = Rs 50

c



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

Advertisement-X

 

 

Bill of exchange (BOE): Meaning and Examples

 

Thanks, Please Like and share with your friends  

Comment if you have any question.

Advertisement-X

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

Advertisement

Advertisement

error: Content is protected !!