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

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

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

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

T.S. Grewal’s Double Entry Book Keeping