Question No 44 Chapter No 15

Question No 44 Chapter No 15

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.DebitCredit
2019     
Apr.15Bill Receivable A/cDr. 2,400 
 To B A/c   2,400
 (Being receipt of three-bill received.)    
      
Apr.20C A/cDr. 710 
 To Bill Receivable A/c   700
 To Discount A/c   10
 (Being bill endorsed to C received a discount.)    
      
Apr.22Bank A/cDr. 792 
 Discount  A/cDr. 8 
 To Bill Receivable A/c   800
 (Being bill discounted from Bank.)    
      
Jun.18Bill Receivable A/cDr. 825 
 To B A/c   810
 To Interest A/c   15
 (Being Recep received with interest .)    
      
Jun.18Cash A/cDr. 900 
 To Bill Receivable A/c   900
 (Being bill discounted from Bank.)    
      
Sep.21Cash A/cDr. 825 
 To Bill Receivable A/c   825
 (Being bill discounted from Bank.)    
     

 

In the book of B (Drawer)
Date  Particulars
L.F.DebitCredit
2019     
Apr.15A A/cDr. 2,400 
 To Bill Payable A/c   2,400
 (Being acceptance of two bill payable after 3 months .)    
      
May.18Bill Payable A/cDr. 700 
 To Cash A/c   700
 (Being payment made of one of the bills.)    
      
Jun.18Bill Payable A/cDr. 800 
 Noting Charges A/cDr. 10 
 To Kapoor A/c   810
 (Being dishonor of bill presented by a bank on the due date.)    
      
Oct.1Interest A/cDr. 15 
 To Cash A/c   15
 (Being the amount of interest due to A.)    
      
Jun.18A A/cDr. 825 
 To Bill Payable A/c   825
 (Being acceptance of two bills payable after 3 months .)    
      
Jul.18Bill Payable A/cDr. 900 
 To Cash A/c   900
 (Being payment made of one of the bill.)    
      
Sep.21Bill Payable A/cDr. 825 
 To Cash A/c   825
 (Being payment made of one of the bill.)    
     

 

Journal of C (Endorsee)
Date  Particulars
L.F.DebitCredit
2019     
Apr.20Bill Receivable A/cDr. 700 
 Discount A/cDr. 10 
 To Interest A/c   710
 (Being receipt of an acceptance from A in full settlement of the amount due on him.)    
      
May.18Cash A/cDr. 710 
 To Bill Receivable A/c   710
 (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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