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

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.

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The solution of Question No 41 Chapter No 16:-

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