Question No 44 Chapter No 15 - USHA Publication 11 Class

Question No 44 Chapter No 15

Table of Contents

The solution of Question No 44 Chapter No 15: –

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

Renewal of Bill

44. On 15th April 2019. A agrees t Draw on B who is his debtor for Rs 2,400 three bills of exchange No 1 for Rs 700 at one months ; No 2 for Rs 800 at 2 months and No.3 for RS 900 at three months. B accepts and returns these bills to A.
A endorses on 20th April the first bill to his creditor C in full settlement of Account of Rs 710; discounts on 22nd April the second bill at the bank for RS 792 and retains the third bill till maturity.
The first bill is met at Maturity, the second bill is dishonoured on the due date Rs 10 being p[aid for noting charges. A charges B Rsc15 for interest and drew on him a fourth bill for the Rs 825 at three months. The third and fourth bill are duly honoured on the due date
Give journal entries to record these traction in there book of A, B and C

The solution of Question No 44 Chapter No 15: –

In the book of A (Drawee)
Date	Particulars		L.F.	Debit	Credit
2019
Apr.15	Bill Receivable A/c	Dr.		2,400
	To B A/c				2,400
	(Being receipt of three-bill received.)

Apr.20	C A/c	Dr.		710
	To Bill Receivable A/c				700
	To Discount A/c				10
	(Being bill endorsed to C received a discount.)

Apr.22	Bank A/c	Dr.		792
	Discount A/c	Dr.		8
	To Bill Receivable A/c				800
	(Being bill discounted from Bank.)

Jun.18	B A/c	Dr.		810
	To bank A/c				810
	(Being Recep received with interest .)

Jun.18	B A/c	Dr.		15
	To Interest A/c				15
	(Being interest due)

Jun.18	Bill Receivable A/c			825
	To B A/c				825
	(Being the receipt of the 4th acceptance from B)

Jun.18	Cash A/c	Dr.		900
	To Bill Receivable A/c				900
	(Being bill discounted from Bank.)

Sep.21	Cash A/c	Dr.		825
	To Bill Receivable A/c				825
	(Being bill discounted from Bank.)

In the book of B (Drawer)
Date	Particulars		L.F.	Debit	Credit
2019
Apr.15	A A/c	Dr.		2,400
	To Bill Payable A/c				2,400
	(Being acceptance of two bill payable after 3 months .)

May.18	Bill Payable A/c	Dr.		700
	To Cash A/c				700
	(Being payment made of one of the bills.)

Jun.18	Bill Payable A/c	Dr.		800
	Noting Charges A/c	Dr.		10
	To Kapoor A/c				810
	(Being dishonor of bill presented by a bank on the due date.)

Oct.1	Interest A/c	Dr.		15
	To Cash A/c				15
	(Being the amount of interest due to A.)

Jun.18	A A/c	Dr.		825
	To Bill Payable A/c				825
	(Being acceptance of two bills payable after 3 months .)

Jul.18	Bill Payable A/c	Dr.		900
	To Cash A/c				900
	(Being payment made of one of the bill.)

Sep.21	Bill Payable A/c	Dr.		825
	To Cash A/c				825
	(Being payment made of one of the bill.)

Journal of C (Endorsee)
Date	Particulars		L.F.	Debit	Credit
2019
Apr.20	Bill Receivable A/c	Dr.		700
	Discount A/c	Dr.		10
	To Interest A/c				710
	(Being receipt of an acceptance from A in full settlement of the amount due on him.)

May.18	Cash A/c	Dr.		700
	To Bill Receivable A/c				700
	(Being receipt of the amount received .)