Question No 41 Chapter No 16 – T.S. Grewal 11 Class

Question No 41 Chapter No 16

Question No 41  Chapter No 16

41. Y purchased goods for 6,000 on 1st June, 2011 from X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonoured for non-payment and Z had to pay 50 as noting charges. Two days after the dishonour of bill, Y paid 2,000 to X and requested him to draw a second bill for the balance plus 90 for the amount of interest, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity. Pass Journal entries for the above transactions in the books of X.

The solution of Question No 41 Chapter No 16:-

a



Books of X
Date   Particulars
L.F. Debit Credit
2011          
June 01 Y A/c Dr.   6,000  
  To Sales A/c       6,000
  (Being Goods sold to Y)        
June 01 Bills Receivable A/c Bill no. 1 Dr.   6,000  
  To Y A/c       6,000
  (Being Y′s acceptance received)        
June 04 Z A/c Dr.   6,000  
  To Bills Receivable A/c Bill no. 1       6,000
  (Being Bill endorsed in favour of Z)        
Sept.04 Y A/c Dr.   6,050  
  To Z A/c       6,050
  (Being Endorsed bill get dishonoured and noting charges were paid)        
Sept.06 Cash A/c Dr.   2,000  
  Bills Receivable A/c Bill no. 2 4, 050 +90 Dr.   4,140  
  To Y A/c       6,050
  To Interest A/c       90
  (Cash received and the remaining balance new Bill issued including interest        
Nov.09 Cash A/c Dr.   4,140  
  To Bills Receivable A/c Bill no. 2       4,140
  (Being Bill met on the due date )        

 

 

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

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T.S. Grewals Double Entry Book Keeping - Question No 41 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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