Question No 42 Chapter No 15 – USHA Publication 11 Class

Question No 42 Chapter No 15

Question No 42 Chapter No 15

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.DebitCredit
2018     
Jan.1Bill Receivable A/cDr. 10,000 
 To Suresh A/c   10,000
 (Being receipt of two acceptance of Rs 5,000 each in settlement of amount due.)    
      
Jan.1Bank A/cDr. 4,800 
 Discount A/cDr. 200 
 To Bill Receivable A/c   5,000
 (Being the amount receivable on discounting of the first bill.)    
      
Jan.1Mukesh A/cDr. 5,000 
 To Bills Receivable A/c   5,000
 (Being bill endorsed to Mukesh.)    
      
Apr.4Suresh A/cDr. 5,050 
 To Bank A/c   5,050
 (Being dishonor of the discounted bill nothing charges paid .)    
      
Apr.10Cash A/cDr. 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.DebitCredit
2018     
Jan.1Brijesh A/cDr. 10,000 
 To Bill Payable A/c   10,000
 (Being acceptance of two bill of Rs 5,000 each .)    
      
Apr.4Bill Payable A/cDr. 5,000 
 To Cash A/c   5,000
 (Being receipt of an acceptance for one month.)    
      
Apr.4Bill Payable A/cDr. 5,000 
 Noting Charges A/cDr. 50 
 To Brijesh A/c   5,050
 (Being dishonour of bill presented by a bank on the due date.)    
      
Apr.10Brijesh A/cDr. 5,050 
 To Cash A/c   5,050
 (Being amount paid in Settlement of debt.)    
     

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

Leave a Reply