Question No 44 Chapter No 16 - T.S. Grewal 11 Class

Question No 44 Chapter No 16

44. Amar sells goods to Bhola for 10,000 plus CGST and SGST @ 9% each. He receives the GST amount in cash and draws upon Bhola a bill for the balance amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bank at a discount of 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his bank and his expenses amounting to 100. Bhola gives a fresh bill of 2 months’ date to Amar for 10,250, which he meets at maturity. Show necessary Journal entries in Amar’s books.

The solution of Question No 44 Chapter No 16:-

In the books of Amar Drawer
Date	Particulars		L.F.	Debit	Credit
	Bhola’s A/c	Dr.		11,800
	To Sales A/c				10,000
	To Output CGST A/c				900
	To Output SGST A/c				900
	(Being Goods sold to Bhola)
	Cash A/c	Dr.		1,800
	Bills Receivable A/c	Dr.		10,000
	To Y A/c				11,800
	(Being Cash and bills received)
	Bank A/c	Dr.		9,850
	Discounting Charges	Dr.		150
	To Bills Receivable A/c				10,000
	( Being Bill discounted)
	Bhola’s A/c	Dr.		10,100
	To Bank A/c				10,100
	( Being Bill dishonoured)
	Bhola’s A/c	Dr.		150
	To Interest A/c				150
	(Being Interest due)
	Bills Receivable A/c	Dr.		10,250
	To Bhola’s A/c				10,250
	(Being New bill received)
	Cash A/c	Dr.		10,250
	To Bills Receivable A/c				10,250
	( Being New bill met on maturity)

In the books of Bhola Drawee
Date	Particulars		L.F.	Debit	Credit
	Purchases A/c	Dr.		10,000
	Input CGST A/c	Dr.		900
	Input SGST A/c	Dr.		900
	To Amar’s A/c				11,800
	(Being Goods purchased from Amar)
	Amar’s A/c	Dr.		11,800
	To Bills Payable A/c				10,000
	To Cash A/c				1,800
	(Being Cash paid and bills accepted)
	Bills Payable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		100
	To A A/c				10,100
	(Being Bills dishonoured)
	Interest A/c	Dr.		150
	To Amar’s A/c				150
	(Being Interest due )
	Amar’s A/c	Dr.		20,000
	To Bills Payable A/c				22,000
	(Being New bill accepted)
	Bills Payable A/c	Dr.		10,250
	To Cash A/c				10,250
	(Being New bill met on maturity)

Bill of exchange (BOE): Meaning and Examples

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Also, Check out the solved question of previous Chapters: –

- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book