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

Question No 44 Chapter No 16

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

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T.S. Grewals Double Entry Book Keeping - Question No 44 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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