Question No 40 Chapter No 16 - T.S. Grewal 11 Class

Question No 40 Chapter No 16

40. How will you record the following transactions in the books Kapadia?
a A bill received from Dalpat for 1,000 has to be renewed, Dalpat agrees to pay 20 as interest.
b Swamy’s bill for 800 endorsed in favour of Ghosh dishonoured, Ghosh pays 10 as noting charges. Swamy pays 300 immediately and agrees to accept a new bill for 3 months for the balance together with interest at 6% p.a. Ghosh’s Account is settled by cheque.

The solution of Question No 40 Chapter No 16:-

Books of Kapadia
Date	Particulars		L.F.	Debit	Credit
	Dalpat A/c	Dr.		1,000
	To Bills Receivable A/c				1,000
	(Being Dalpat acceptance cancelled)
	Dalpat A/c	Dr.		20
	To Interest A/c				20
	(Being Interest due from Dalpat)
	Cash A/c	Dr.		20
	To Dalpat A/c				20
	(Being Cash received from Dalpat for interest on renewal of the bill)
	Bills Receivable A/c	Dr.		1,000
	To Dalpat A/c				1,000
	(Being New bill accepted by Dalpat )

Books of Meena
Date	Particulars		L.F.	Debit	Credit
	Swamy A/c	Dr.		810
	To Ghosh				810
	(Being Swamy ′s acceptance dishonoured and Ghosh paid Rs 10 as Noting Charges)
	Cash A/c	Dr.		300
	To Swamy				300
	(Being Cash received from Swamy)
	Swamy A/c	Dr.		7.65
	To Interest A/c				7.65
	(Being Cash received from Dalpat for interest on renewal of the bill)
	Working Note: Interest = 510 × 6% × 3/12 = Rs 7.65
	Bills Receivable A/c	Dr.		517.65
	To Swamy A/c				517.65
	(Being Swamy ′s acceptance received for the balance due including interest)
	Ghosh A/c	Dr.		810
	To Bank A/c				810
	(Being Amount due to Ghosh was paid through cheque)

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