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Question No 8 Chapter No 16 – T.S. Grewal 11 Class

Question No 8 Chapter No 16
Question No.8 - Chapter No.16- T.S. Grewal +1 Book 2019-Solution

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Question No 8 Chapter No 16

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8. A owed B 8,000. He gave a bill for the same on 1st August 2017 payable after 4 months at the Bank of India. Chandni Chowk, Delhi. Immediately after receiving the bill, B endorsed it to C in payment of his debt. On 1st September, C discounted the bill at 12% p.a. The bill is met on the due date. Pass the necessary Journal entries in the books of A, B and C.

The solution of Question No 8 Chapter No 16: – 


Books of A
Date  Particulars
L.F.DebitCredit
2017     
Aug.01B A/cDr. 8,000 
 Bills Payable A/c   8,000
 (Being bill accepted by B )   
Dec.04Bills Payable A/cDr. 8,000 
 To Bank A/c   8,000
 (Being bill received with Discount )   
     
 

 


Books of B
Date  Particulars
L.F.DebitCredit
2017     
Aug 01Bills Receivable A/cDr. 8,000 
 To A A/c   8,000
 (Being Bill accepted )   
Aug 01C A/cDr. 8,000 
 To Bills Receivable A/c   8,000
 (Being Cash paid against the bill )   
     

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Books of C
Date  Particulars
L.F.DebitCredit
2018     
Aug.01Bills Receivable A/cDr. 8,000 
 To B A/c   8,000
 (Being Bill receivable received from A)   
Sep 01Bank A/cDr. 7,760 
 Discount Charges A/cDr. 240 
 To Bills Receivable A/c   8,000
 (Being Amount owed to B was settled by Bills Receivable)   
     

 

Working Note:

 

Calculation of Discount charges=Bills receivableXRateXPeriod of Maturity
10012

 

 =8,000 XX12X3
10012
       

= Rs 240

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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. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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