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

Question No 38 Chapter No 16

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

 

Thanks, Please Like and share with your friends  

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

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

T.S. Grewals Double Entry Book Keeping - Question No 38 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.