Question No 39 Chapter No 15 - USHA Publication 11 Class

Question No 39 Chapter No 15

Table of Contents

The solution of Question No 39 Chapter No 15: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Renewal of Bill

39. Mahesh sold goods of the value of Rs 2,000 to Naresh taking a bill for 3 months dated1st July,2017. on 4th August Mahesh discounted the bill at 6% p.a. with his bankers. At maturity, the bill was returned by the bankers dishonoured with Rs 50 as expenses. Naresh paid Rs 500 and the expenses ad gave Mahesh another bill at three months for Rs 1,500 and 8% p.a. interest in cash but before maturity, he became insolvent and ultimately paid his creditors 80 paise in rupee.
Pass journal entries in the book of Mahesh

The solution of Question No 39 Chapter No 15: –

In the book of Mahesh (Drawer)
Date	Particulars		L.F.	Debit	Credit
2017
Jul.1	Naresh A/c	Dr.		2,000
	To Sale A/c				2,000
	(Being sold goods on credit .)

Jul.1	Bill Receivable A/c	Dr.		2,000
	To Naresh A/c				2,000
	(Being receipt of an acceptance for 3 months.)

Aug.4	Bank A/c	Dr.		1,980
	Discount A/c	Dr.		20
	To Bill Receivable A/c				2,000
	To Bill Receivable A/c

Oct.4	Naresh A/c	Dr.		2,050
	To Bank A/c				2,050
	(Being bill dishonoured and expenses paid by bank.)

Oct.4	Cash A/c	Dr.		550
	To Naresh A/c				550
	(Being cash received as part payment .)

Oct.4	Naresh A/c	Dr.		30
	To Interest A/c				30
	(Being interest charges on Rs 1,500fro 3 months @8%.)

Oct.4	Bill Receivable A/c	Dr.		1,530
	To Naresh A/c				1,530
	(Being new bill received from Naresh for the balance amount plus interest.)
2018
Jan.7	Naresh A/c	Dr.		1,530
	To Bill Receivable A/c				1,530
	(Being bill dishonoured on maturity due to insolvency.)

Jan.7	Cash A/c	Dr.		1,224
	Bad Debts A/c	Dr.		306
	To Naresh A/c				1,530
	(Being 80p in the rupee received from the estate of Naresh)