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Question No 41 Chapter No 15
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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. | Debit | Credit | |
(a) | Bill Payable A/c | Dr. | 5,000 | ||
To Ram A/c | 5,000 | ||||
(Being cancellation of the bill.) | |||||
Ram A/c | Dr. | 2,000 | |||
To Bank A/c | 2,000 | ||||
(Being payment received from Ram.) | |||||
125 | |||||
Intrest A/c | 125 | ||||
To Ram A/c | |||||
Ram A/c | Dr. | 3,125 | |||
To Bill Payable A/c | 3,125 | ||||
(Being new bill for the balance of the amount.) | |||||
(b) | Bill Payable A/c | Dr. | 9,000 | ||
To Karan A/c | 9,000 | ||||
(Being the cancellation of old bill.) | |||||
Interest A/c | Dr. | 135 | |||
To Karan A/c | 135 | ||||
(Being interest paid in cash.) | |||||
Karam A/c | Dr. | 9,135 | |||
To Bills Payable A/c | 9,135 | ||||
(Being acceptance of the new bill for amount with interest.) | |||||
(C) | P A/c | Dr. | 2,500 | ||
To Bill Receivable A/c | 2,500 | ||||
(Being the cancellation of old bill.) | |||||
Cash A/c | Dr. | 1,000 | |||
Bad Debts A/c | Dr. | 1,500 | |||
To P A/c | 2,500 | ||||
(Being amount received from the estate of P balance written off bad debts.) | |||||
(d) | Raghu A/c | Dr. | 2,000 | ||
To Bill Receivable A/c | 2,000 | ||||
(Being the cancellation of old bill.) | |||||
Cash A/c | Dr. | 500 | |||
To Raghu A/c | 500 | ||||
(Being amount received from Raghu in part of Payment.) | |||||
Raghu A/c | Dr. | 30 | |||
To Interest A/c | 30 | ||||
(Being interest on Rs 1,500 @ 8% for 3 months.) | |||||
Bill Receivable A/c | Dr. | 1,530 | |||
To Rahu A/c | 1,530 | ||||
(Being receipt of new bill for the balancing amount including interest.) | |||||
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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. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
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Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
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Chapter No. 12 – Bank Reconciliation Statement
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)
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Chapter No. 18 – Financial Statements – (With Adjustments)
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