Question No 44 Chapter No 15 – USHA Publication 11 Class

Question No 44 Chapter No 15

Question No 44 Chapter No 15

Free Accounting book Solution - Class 11 and Class 12

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 .)        
         

 

Bills Receivable Book | Subsidiary Books | Examples

 

Bills Payable Book | Subsidiary Books | Examples

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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)

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