Question No 41 Chapter No 15

Question No 41 Chapter No 15

Renewal of Bill

41. Journalise the following transaction
(a)Retired our acceptance in favor of Ram for Rs 5,000 by cheque Rs 2,000 and a new bill the balance at two months with Rs 125 as interest
(b)Our acceptance to Karan for Rs 9,000 renewed for three months with interest at 6% p.a.
(c)Archana on whom we had drawn a bill for Rs 2,500 has become insolvent and 40% has been received in final payment
(d)Raghu’s acceptance in our favor has been dishonoured for Rs 2,000. he pays Rs 500 in cash and accepts a new bill for the balance plus interest at 8% p.a at 3 months

The solution of Question No 41 Chapter No 15: –

 

Journal
Date  Particulars
L.F.DebitCredit
      
(a)Bill Payable A/cDr. 5,000 
 To Ram A/c   5,000
 (Being cancellation of the bill.)    
      
 Ram A/cDr. 2,000 
 To Bank A/c   2,000
 (Being payment received from Ram.)    
      
 Ram A/cDr. 3,125 
 To Bill Payable A/c   3,000
 To Interest A/c   125
 (Being new bill for the balance of the amount.)    
      
(b)Bill Payable A/cDr. 9,000 
 To Karan A/c   9,000
 (Being the cancellation of old bill.)    
      
 Interest A/cDr. 135 
 To Karan A/c   135
 (Being interest paid in cash.)    
      
 Karam A/cDr. 9,135 
 To Bills Payable A/c   9,135
 (Being acceptance of the new bill for amount with interest.)    
      
(C)P A/cDr. 2,500 
 To Bill Receivable A/c   2,500
 (Being the cancellation of old bill.)    
      
 Cash A/cDr. 1,000 
 Bad Debts A/cDr. 1,500 
 To P A/c   2,500
 (Being amount received from the estate of P balance written off bad debts.)    
      
(d)Raghu A/cDr. 2,000 
 To Bill Receivable A/c   2,000
 (Being the cancellation of old bill.)    
      
 Cash A/cDr. 500 
 To Raghu A/c   500
 (Being amount received from Raghu in part of Payment.)    
      
 Rahu A/cDr. 30 
 To Interest A/c   30
 (Being interest on Rs 1,500 @ 8% for 3 months.)    
      
 Bill Receivable A/cDr. 1,530 
 To Rahu A/c   1,530
 (Being receipt of new bill for the balancing amount including interest.)    
     

 

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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