Question No 39 Chapter No 15 – USHA Publication 11 Class

Question No 39 Chapter No 15

Question No 39 Chapter No 15

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 receipt of an acceptance for one months.)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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Also, Check out the solved question of all Chapters: –

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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