Question No 39 Chapter No 16 - T.S. Grewal 11 Class

Question No 39 Chapter No 16

39. Leena sold goods to Meena on 1st March 2009 for 68,000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid 55 as noting charges. The second bill was retired on 4th May 2009 under a rebate of 6% p.a. with mutual agreement. Journalise the above in the books of Leena and Meena.

The solution of Question No 39 Chapter No 16:-

Books of Leena
Date	Particulars		L.F.	Debit	Credit
2009
Mar.01	Meena A/c	Dr.		68,000
	To Sales A/c				68,000
	(Being Goods were sold to Meena)
Mar.01	Bills Receivable A/c Bill no. 1	Dr.		34,000
	Bills Receivable A/c Bill no. 2	Dr.		34,000
	To Meena				68,000
	(Being Meena ′s acceptance were received )
Mar.01	Bank A/c	Dr.		32,980
	Discount Charges A/c	Dr.		1,020
	To Bills Receivable A/c Bill no. 01				34,000
	(Being Bill no. 1discount with bank at12%)
	Working Note: Interest = 34,000 × 12% × 3/12
May 04	Cash A/c	Dr.		33,830
	Rebate A/c	Dr.		170
	To Bills Receivable A/c Bill no. 2				34,000
	(Being Bill no. 2retired before one month under are bate at 6%)
	Working Note: Rebate = 34,000 × 6% × 1/12
June 04	Meena	Dr.		34,055
	To Bank A/c				34,055
	(Being Bill no. 1which was discounted with bank proved dishonoured )

Books of Meena
Date	Particulars		L.F.	Debit	Credit
2009
Mar.01	Purchases A/c	Dr.		68,000
	To Leena				68,000
	(Being goods were bought from Leena)
Mar.01	Leena	Dr.		68,000
	To Bills Payable A/c Bill no. 1				34,000
	To Bills Payable A/c Bill no. 2				34,000
	(Being Bills drawn by Leena were accepted)
May 04	Bills Payable A/c Bill no. 2	Dr.		34,000
	To Cash A/c				33,830
	To Rebate A/c				170
	(Being Bill no. 2 discharge one month before due and received )
June 04	Bills Payable A/c Bill no. 1	Dr.		34,000
	Noting Charges A/c	Dr.		55
	To Leena				34,055
	(Being Bill no. 2 was dishonoured due on payment)

Bill of exchange (BOE): Meaning and Examples

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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