Question No 42 Chapter No 15 - USHA Publication 11 Class

Question No 42 Chapter No 15

Table of Contents

The solution of Question No 42 Chapter No 15: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Renewal of Bill

42.Suresh owed money to Brijesh and hence accepted two bills each for Rs 5,000 for the three months duration drawn on him by the latter on January 1,2019. Brijesh discounted one of the bills with the bank for the net proceeds of Rs 4,800 and endorsed the other in the favor of Mukesh to whom he owed the like amount on the same date. Suresh paid the bill held by Mukesh on the due date but failed to meet the bill presented by the bank debited Brijesh’s account on April 4,2019 inclusive of bank charges of Rs 50. Suresh paid the amount inclusive of Charges to Brijesh on April 10,2019
Show journal entries in respect of the above in the book of Suresh and Brijesh

The solution of Question No 42 Chapter No 15: –

In the book of Brijesh (Drawee)
Date	Particulars		L.F.	Debit	Credit
2018
Jan.1	Bill Receivable A/c	Dr.		10,000
	To Suresh A/c				10,000
	(Being receipt of two acceptance of Rs 5,000 each in settlement of amount due.)

Jan.1	Bank A/c	Dr.		4,800
	Discount A/c	Dr.		200
	To Bill Receivable A/c				5,000
	(Being the amount receivable on discounting of the first bill.)

Jan.1	Mukesh A/c	Dr.		5,000
	To Bills Receivable A/c				5,000
	(Being bill endorsed to Mukesh.)

Apr.4	Suresh A/c	Dr.		5,050
	To Bank A/c				5,050
	(Being dishonor of the discounted bill nothing charges paid .)

Apr.10	Cash A/c	Dr.		5,050
	To Suresh A/c				5,050
	(Being amount received in Settlement of debt.)

In the book of Suresh (Drawer)
Date	Particulars		L.F.	Debit	Credit
2018
Jan.1	Brijesh A/c	Dr.		10,000
	To Bill Payable A/c				10,000
	(Being acceptance of two bill of Rs 5,000 each .)

Apr.4	Bill Payable A/c	Dr.		5,000
	To Cash A/c				5,000
	(Being receipt of an acceptance for one month.)

Apr.4	Bill Payable A/c	Dr.		5,000
	Noting Charges A/c	Dr.		50
	To Brijesh A/c				5,050
	(Being dishonour of bill presented by a bank on the due date.)

Apr.10	Brijesh A/c	Dr.		5510
	To Cash A/c				5510
	(Being amount paid in Settlement of debt.)