Question No 43 Chapter No 15 - USHA Publication 11 Class

Question No 43 Chapter No 15

Table of Contents

The solution of Question No 43 Chapter No 15: –

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

Renewal of Bill

43. On 15th June,2018 Saksena Bros. owed Kapoor &Co RS 15,000. the latter drew upon the former two bills-one for Rs 10,000 payable two months after date and the other for Rs 5,000 payable thee months after date. Kapoor & Co. discounted the first bill at 6 percent per annum and endorsed the second bill in factor of Sarabjit & Co. the bill was duly met duly met on maturity but the second bill was dishonoured and Sarabjit & Co. paid RS 45 as noting charges. On 1st October Saksena Bros. cleared their account by Paying Rs 5,060 which also included Rs 15 as interest
Write up the journal entries in the book of Kapoor & Co. and Saksena Bros.

The solution of Question No 43 Chapter No 15: –

In the book of Kapoor & Co (Drawer)
Date	Particulars		L.F.	Debit	Credit
2018
Jun.15	Bill Receivable A/c	Dr.		15,000
	To Saksena Bros. A/c				15,000
	(Being receipt of two bill received payable after 3 months.)

Jun.15	Bank A/c	Dr.		9,900
	Discount A/c	Dr.		100
	To Bill Receivable A/c				10,000
	(Being the amount receivable on discounting of the first bill.)

Jun.15	Sarabjit & Co A/c	Dr.		5,000
	To Bills Receivable A/c				5,000
	(Being bill endorsed to Sarabjit & Co.)

Sep.4	Saksena Bros. A/c	Dr.		5,045
	To Sarabjit & Co A/c				5,045
	(Being dishonor of the discounted bill nothing charges paid .)

Oct.1	Cash A/c	Dr.		5,060
	To Saksena A/c				5,045
	To Interest A/c				15
	(Being amount receive from Saksena including interest)

In the book of Saksena Bros (Drawee)
Date	Particulars		L.F.	Debit	Credit
2018
Jun.15	Kapoor A/c	Dr.		15,000
	To Bill Payable A/c				15,000
	(Being acceptance of two bill payable after 3 months .)

Aug.18	Bill Payable A/c	Dr.		10,000
	To Cash A/c				10,000
	(Being payment made of one of the bill.)

Sep.18	Bill Payable A/c	Dr.		5,000
	Noting Charges A/c	Dr.		45
	To Kapoor A/c				5,045
	(Being dishonor of bill presented by bank on the due date.)

Oct.1	Kapoor A/c	Dr.		5,045
	Interest A/c	Dr.		15
	To Cash A/c				5,060
	(Being payment of the amount dur to Kapoor & Co. including interest.)