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

Question No 8 Chapter No 16

Question No 8 Chapter No 16

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. Debit Credit
2017          
Aug.01 B A/c Dr.   8,000  
  Bills Payable A/c       8,000
  (Being bill accepted by B )      
Dec.04 Bills Payable A/c Dr.   8,000  
  To Bank A/c       8,000
  (Being bill received with Discount )      
         
 

 


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

 


Books of C
Date   Particulars
L.F. Debit Credit
2018          
Aug.01 Bills Receivable A/c Dr.   8,000  
  To B A/c       8,000
  (Being Bill receivable received from A)      
Sep 01 Bank A/c Dr.   7,760  
  Discount Charges A/c Dr.   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 receivable X Rate X Period of Maturity
100 12

 

  = 8,000 X X 12 X 3
100 12
             

= Rs 240

Bill of exchange (BOE): Meaning and Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 8 Chapter No 16 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.