Accountancy Dk Goel 2019 Solutions for Class 11 Commerce Accountancy Chapter 11 Bills Of Exchange are provided here with simple stepbystep explanations. These solutions for Bills Of Exchange are extremely popular among Class 11 Commerce students for Accountancy Bills Of Exchange Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Accountancy Dk Goel 2019 Book of Class 11 Commerce Accountancy Chapter 11 are provided here for you for free. You will also love the adfree experience on Meritnation’s Accountancy Dk Goel 2019 Solutions. All Accountancy Dk Goel 2019 Solutions for class Class 11 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 18.57:
Question 1:
Calculate the due dates of the bills in the following cases:
Date of the Bills  Period  
I.  1st February, 2017  2 months 
II.  31st January, 2017  3 months 
III.  30th September, 2017  2 months 
IV.  30th September, 2017  3 months 
V.  29th December, 2017  2 months 
VI.  31st December, 2017  2 months 
VII.  15th July, 2017  30 days 
VIII  27th January, 2016  1 month 
Answer:
Due Date of Bill = Date of Bill Drawn + Period + Grace Days
S. No.

Date of Bill Drawn
(1)

Period
(2)

Grace Days
(3)

Due Date
(1 + 2 + 3)

I.

February 01, 2017 
2 months

3 days

April 04, 2017 
II.

January 31, 2017 
3 months

3 days

May 03, 2017 
III.

September 30, 2017 
2 months

3 days

December 03, 2017 
IV.

September 30, 2017 
3 months

3 days

January 02, 2018 
V.

December 29, 2017 
2 months

3 days

March 03, 2018 
VI.

December 31, 2017 
2 months

3 days

March 03, 2018 
VII.

July 15, 2017 
30 days

3 days

August 17, 2017 
VIII.

January 27, 2016 
1 month

3 days

March 01, 2016 
Page No 18.57:
Question 2:
Find out the due dates of the bills in the following cases:
Date of the Bills  Period  
I.  29th May, 2017  4 months 
II.  31st March, 2017  1 month 
III.  21st July, 2017  60 days 
IV.  14th May, 2017  90 days 
V.  28th January, 2016  1 month 
VI.  31st January, 2016  1 month 
Emergency holiday 22nd September. 
Answer:
Due Date of Bill = Date of Bill Drawn + Period + Grace Days
S. No.

Date of Bill Drawn
(1)

Period
(2)

Grace Days
(3)

Due Date
(1 + 2 + 3)

I.

May 29, 2017 
4 months

3 days

October 01, 2017 
II.

March 31, 2017 
1 month

3 days

May 03, 2017 
III.

July 21, 2017 
60 days

3 days

September 23, 2017 
IV.

May 14, 2017 
90 days

3 days

August 14, 2017 
V.

January 28, 2016 
1 month

3 days

March 02, 2016 
VI.

January 31, 2016 
1 month

3 days

March 03, 2016 
Note: When due date falls on;
1. Public holiday (here October 2, 2017 and August 15, 2017), then due date is preceding date.
2. Emergency holiday (here September 22, 2017), then due date is succeeding date.
Page No 18.58:
Question 3:
On 1st January, 2019, Ajay sold goods to Bhushan for ₹ 50,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay. Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.
Answer:
Books of Ajay
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan. 01

Bhushan  Dr. 
50,000




To Sales A/c 

50,000



(Goods sold to Bhushan) 







Jan. 01

Bills Receivable A/c  Dr. 
50,000




To Bhushan 

50,000



(Bhushan accepted the bill) 







Mar. 04

Cash A/c  Dr. 
50,000




To Bills Receivable A/c 

50,000



(Bill honoured on maturity) 


Books of Bhushan
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan. 01

Purchases A/c  Dr. 
50,000




To Ajay 

50,000



(Goods purchased from Ajay) 







Jan. 01

Ajay  Dr. 
50,000




To Bills Payable A/c 

50,000



(Bill drawn by Ajay, accepted) 







Mar. 04

Bills Payable A/c  Dr. 
50,000




To Cash A/c 

50,000



(Bill honoured on maturity) 


Page No 18.58:
Question 4:
On Jan. 1,2017, Tarun purchased goods from Arun for ₹ 20,000 and immediately drew a promissory note in favour of Arun payable after 1 month. Date of maturity of the promissory note was declared emergency holiday by the Government of India under the Negotiable Instrument Act 1881. Tarun met the promissory note according to the provisions of law.
Pass the necessary Journal entries in the books of Arun and Tarun.
Answer:
Books of Arun
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 01

Tarun  Dr. 
20,000




To Sales A/c 

20,000



(Goods sold to Tarun) 







Jan. 01

Bills Receivable A/c  Dr. 
20,000




To Tarun 

20,000



(Tarun accepted the promissory note) 







Feb. 05

Cash A/c  Dr. 
20,000




To Bills Receivable A/c 

20,000



(Promissory note honoured on maturity) 


Books of Tarun
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 01

Purchases A/c  Dr. 
20,000




To Arun 

20,000



(Goods purchased from Arun) 







Jan. 01

Arun  Dr. 
20,000




To Bills Payable A/c 

20,000



(Promissory note drawn by Arun, accepted) 







Feb. 05

Bills Payable A/c  Dr. 
20,000




To Cash A/c 

20,000



(Promissory note honoured on maturity) 


Note: When due date falls on Emergency holiday (here February 04, 2017), then due date is succeeding date i.e. February 05, 2017.
Page No 18.58:
Question 5:
On Feb. 6, 2017 A sold goods for ₹ 1,00,000 to B. B paid 40% immediately on which A allowed a cash discount of ₹ 500. For the balance A drew a bill on B payable after 30 days. Due date of bill was a public holiday and the bill was met as per the provisions of Negotiable Instrument Act. Journalise the above transactions in the books of A and B.
Answer:
Books of A
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Feb. 06

B  Dr. 
1,00,000




To Sales A/c 

1,00,000



(Goods sold to B) 







Feb. 06

Cash A/c  Dr. 
39,500




Discount Allowed A/c  Dr. 
500




Bills Receivable A/c  Dr. 
60,000




To B 

1,00,000



(B accepted the bill) 







Mar. 10

Cash A/c  Dr. 
60,000




To Bills Receivable A/c 

60,000



(Bill honoured on maturity) 


Books of B
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Feb. 06

Purchases A/c  Dr. 
1,00,000




To A 

1,00,000



(Goods purchased from A) 







Feb. 06

A  Dr. 
1,00,000




To Cash A/c 

39,500



To Discount Received A/c 

500



To Bills Payable A/c 

60,000



(Bill drawn by A, accepted) 







Mar. 10

Bills Payable A/c  Dr. 
60,000




To Cash A/c 

60,000



(Bill honoured on maturity) 


Note: When due date falls on Public holiday (here March 11, 2017), then due date is preceding date i.e. March 10, 2017.
Page No 18.58:
Question 6(A):
Vishal sold goods for ₹ 70,000 to Manju on Jan. 5, 2019 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank @ 12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.
Answer:
Books of Vishal
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan. 05

Manju  Dr. 
70,000




To Sales A/c 

70,000



(Goods sold to Manju) 







Jan. 05

Bills Receivable A/c  Dr. 
70,000




To Manju 

70,000



(Manju accepted the bill) 







Jan. 05

Bank A/c  Dr. 
68,600




Discounting Charges A/c  Dr. 
1,400




To Bills Receivable A/c 

70,000



(Bill discounted with bank @ 12% p.a. for 2 months) 


Books of Manju
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan. 05

Purchases A/c  Dr. 
70,000




To Vishal 

70,000



(Goods purchased from Vishal) 







Jan. 05

Vishal  Dr. 
70,000




To Bills Payable A/c 

70,000



(Bill drawn by Vishal, accepted) 







Mar. 08

Bills Payable A/c  Dr. 
70,000




To Cash A/c 

70,000



(Bill honoured on maturity) 


Working Note:
Calculation of Discounting Charges
$\mathrm{Discounting}\mathrm{Charges}=7,000\times \frac{12}{100}\times \frac{2}{12}=\mathrm{Rs}140$
Page No 18.58:
Question 6(B):
On 15th February, 2019, X sold goods to Y for ₹ 60,000. On the same day, Y accepted a bill drawn upon him by X for three months for ₹ 60,000. X immediately discounted the bill at 15% p.a. at his bank and Y met the bill on maturity. Make Journal entries in the books of both the parties.
Answer:
Books of X
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Feb. 15

Y  Dr. 
60,000




To Sales A/c 

60,000



(Goods sold to Y) 







Feb. 15

Bills Receivable A/c  Dr. 
60,000




To Y 

60,000



(Y accepted the bill) 







Feb. 15

Bank A/c  Dr. 
57,750




Discounting Charges A/c  Dr. 
2,250




To Bills Receivable A/c 

60,000



(Bill discounted with bank @ 15% p.a. for 3 months) 


Books of Y
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2017





Feb. 15

Purchases A/c  Dr. 
60,000




To X 

60,000



(Goods purchased from X) 







Feb. 15

X  Dr. 
60,000




To Bills Payable A/c 

60,000



(Bill drawn by X, accepted) 







May 18

Bills Payable A/c  Dr. 
60,000




To Cash A/c 

60,000



(Bill honoured on maturity) 


Working Note:
Calculation of Discounting Charges
$\mathrm{Discounting}\mathrm{Charges}=6,000\times \frac{15}{100}\times \frac{3}{12}=\mathrm{Rs}225$
Page No 18.58:
Question 7:
B owed ₹ 20,400 to A. On 15th January, 2019, he accepted a bill for ₹ 20,000 for two months drawn by A in full settlement of his debt. On 18th January, 2019, A endorsed the bill to his creditor C. The bill was duly met on the date of maturity. Pass Journal entries in the books of A, B and C.
Answer:
Books of A
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan.15

Bills Receivable A/c  Dr. 
20,000



Discount Allowed A/c  Dr.  400  

To B 

20,400



(B accepted the bill) 







Jan. 18

C  Dr. 
20,000




To Bills Receivable A/c 

20,000



(Bill endorsed in favour of C) 


Books of B
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan.15

A  Dr. 
20,400




To Bills Payable A/c 

20,000



To Discount Received A/c 

400



(Bill drawn by A, accepted) 







Mar. 18

Bills Payable A/c  Dr. 
20,000




To Cash A/c 

20,000



(Bill honoured on maturity) 


Books of C
Journal


Date

Particulars

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)


2019





Jan. 18

Bills Receivable A/c  Dr. 
20,000




To A 

20,000



(Bills receivable was received from A) 







Mar. 18

Cash A/c  Dr. 
20,000




To Bills Receivable A/c 

20,000



(Bill honoured on maturity) 


Page No 18.58:
Question 8:
On 10th January, 2017, A sells goods to B for ₹ 12,000. On that date, B accepted a bill drawn upon him by A at two months for ₹ 12,000. A retains the bill till due date and on due date sends the bill to the Banker for collection. In due course, A receives the information from the Bank that the bill has been duly met.
Pass Journal Entries in the books of A and B.
Answer:
Books of A
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 10

B  Dr. 
12,000




To Sales A/c 

12,000



(Goods sold to B) 







Jan. 10

Bills Receivable A/c  Dr. 
12,000




To B 

12,000



(B accepted the bill) 







Mar. 13

Bill Sent for Collection A/c  Dr. 
12,000




To Bills Receivable A/c 

12,000



(Bills sent to bank for collection) 







Mar. 13

Bank A/c  Dr. 
12,000




To Bills Sent for Collection A/c 

12,000



(Bill honoured on maturity) 


Books of B
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 10

Purchases A/c  Dr. 
12,000




To A 

12,000



(Goods purchased from A) 







Jan .10

A  Dr. 
12,000




To Bills Payable A/c 

12,000



(Bill drawn by A, accepted) 







Mar. 13

Bills Payable A/c  Dr. 
12,000




To Cash A/c 

12,000



(Bill honoured on maturity) 


Page No 18.59:
Question 9:
On Jan. 15, 2017, Kusum sold goods for ₹ 30,000 to Pushpa and drew upon her three bills of exchanges of ₹ 10,000 each payable after one month, two months and three months respectively. The first bill was retained by Kusum till its maturity. The second bill was endorsed by her in favour of her creditor Khushboo and the third bill was discounted by her immediately @ 6% p.a. All the bills were met by Pushpa. Journalise the above transactions in the books of Kusum and Pushpa.
Answer:
Books of Kusum
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 15

Pushpa  Dr. 
30,000




To Sales A/c 

30,000



(Goods sold to Pushpa) 







Jan. 15

Bills Receivable A/c (1)  Dr. 
10,000




Bills Receivable A/c (2)  Dr. 
10,000




Bills Receivable A/c (3)  Dr. 
10,000




To Pushpa 

30,000



(Pushpa accepted the bills) 







Jan. 15

Khushboo  Dr. 
10,000




To Bills Receivable A/c (2) 

10,000



(Bill endorsed in favour of Khushboo) 







Jan. 15

Bank A/c  Dr. 
9,850




Discounting Charges A/c  Dr. 
150




To Bills Receivable A/c (3) 

10,000



(Bill discounted with the bank @ 6% p.a. for 3 months) 







Feb. 18

Cash A/c  Dr. 
10,000




To Bills Receivable A/c (1) 

10,000



(Bill honoured on maturity) 


Books of Pushpa
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 15

Purchases A/c  Dr. 
30,000




To Kusum 

30,000



(Goods purchased from Kusum) 







Jan. 15

Kusum  Dr. 
30,000




To Bills Payable A/c (1) 

10,000



To Bills Payable A/c (2) 

10,000



To Bills Payable A/c (3) 

10,000



(Bills drawn by Kusum, accepted) 







Feb. 18

Bills Payable A/c  Dr. 
10,000




To Cash A/c 

10,000



(Bill (1) honoured on maturity) 







Mar. 18

Bills Payable A/c (2)  Dr. 
10,000




To Cash A/c 

10,000



(Bill (2) honoured on maturity) 







Apr. 18

Bills Payable A/c (3)  Dr. 
10,000




To Cash A/c 

10,000


(Bill (3) honoured on maturity) 


Working Note:
Calculation of Discounting Charges
Page No 18.59:
Question 10:
X draws on Y a bill for ₹ 4,000 which was duly accepted by Y. Y meets the bill on its due date. Show what entries would be passed in the books of X and Y under each of the following circumstances:
(i) If X retains the bill till due date.
(ii) If X discounts the same with his banker paying ₹ 100 for discount.
(iii) If X endorses the same to his creditor Z, in full settlement of his debt of ₹ 4,080.
(iv) If X sends the bill to his banker for collection.
Answer:
Books of X
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)



Bill drawn by X 




Bills Receivable A/c  Dr. 
4,000




To Y 

4,000



(Y accepted the bill) 








Case (i): Bill retained till maturity 




Cash A/c  Dr. 
4,000




To Bills Receivable A/c 

4,000



(Bill honoued on maturity) 








Case (ii): Bill discounted with bank 




Bank A/c  Dr. 
3,900




Discounting Charges A/c  Dr. 
100




To Bills Receivable A/c 

4,000



(Bill discounted with the bank) 








Case (iii): Bill endorsed to Z 




Z  Dr. 
4,080




To Bills Receivable A/c 

4,000



To Discount Received A/c 

80



(Bill endorsed in favour of Z) 








Case (iv): Bill sent to bank for collection 




Bills Sent for Collection A/c  Dr. 
4,000




To Bills Receivable A/c 

4,000



(Bill sent to bank for collection) 







Bank A/c  Dr. 
4,000




To Bill Sent for Collection A/c 

4,000



(Bill honoured on maturity) 


Books of Y
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)



Bill accepted by Y 




X  Dr. 
4,000




To Bills Payable A/c 

4,000



(Bill drawn by Y, accepted) 








Same entry will be passed in all the four cases 




Bills Payable A/c  Dr. 
4,000




To Cash A/c 

4,000



(Bill honoured on maturity) 


Page No 18.59:
Question 11:
X made the following sales to Y:
Date  Amount (₹) 
Jan. 01, 2017  20,000 
Jan. 08, 2017  25,000 
Jan. 10, 2017  10,000 
Jan. 15, 2017  40,000 
For all the sales X drew bills on Y payable after 60 days. Bill drawn on Jan. 01, 2017 was retained by X with him till its due date. The bill drawn on Jan. 08, 2017 was discounted by X from the bank at 9% p.a. The bill drawn on Jan. 10, 2017 was endorsed by X to his creditor Z in full settlement of ₹ 10,400. On March 12, 2017 X sent the bill drawn on Jan. 15, 2017 to his bank for collection. All the bills were met by Y on due dates.
Pass necessary journal entries in the books of X and Y and prepare Y' s account in the books of X and X's account in the books of Y.
Answer:
Books of X
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 01

Y  Dr. 
20,000




To Sales A/c 

20,000



(Goods sold to Y) 







Jan. 01

Bills Receivable A/c (1)  Dr. 
20,000




To Y 

20,000



(Y accepted the bill) 






Jan. 08

Y  Dr. 
25,000




To Sales A/c 

25,000


(Goods sold to Y) 






Jan. 08

Bills Receivable A/c (2)  Dr. 
25,000




To Y 

25,000



(Y accepted the bill) 







Jan. 08

Bank A/c  Dr. 
24,630




Discounting Charges A/c  Dr. 
370




To Bills Receivable A/c (2) 

25,000



(Bill discounted with the bank @ 9% p.a. for 60 days) 







Jan. 10

Y  Dr. 
10,000




To Sales A/c 

10,000


(Goods sold to Y) 






Jan.10

Bills Receivable A/c (3)  Dr. 
10,000




To Y 

10,000



(Y accepted the bill) 







Jan.10

Z  Dr. 
10,400




To Bills Receivable A/c (3) 

10,000



To Discount Received A/c 

400



(Bill endorsed in favour of Z) 







Jan. 15

Y  Dr. 
40,000




To Sales A/c 

40,000


(Goods sold to Y) 






Jan.15

Bills Receivable A/c (4)  Dr. 
40,000




To Y 

40,000



(Y accepted the bill) 







Mar. 05

Cash A/c  Dr. 
20,000




To Bills Receivable A/c (1) 

20,000



(Bill honoured on maturity) 







Mar. 12

Bill Sent for Collection A/c  Dr. 
40,000




To Bills Receivable A/c (4) 

40,000



(Bill sent to bank for collection) 







Mar. 19

Bank A/c  Dr. 
40,000




To Bills for Collection A/c 

40,000



(Bill honoured on maturity) 


Y’s Account


Dr.


Cr.


Date

Particulars

J.F.

Amount
(Rs)

Date

Particulars

J.F.

Amount
(Rs)


2017


2017



Jan. 01

Sales A/c 
20,000

Jan. 01

Bills Receivable A/c (1) 
20,000


Jan. 08

Sales A/c 
25,000

Jan. 08

Bills Receivable A/c (2) 
25,000


Jan. 10

Sales A/c 
10,000

Jan. 10

Bills Receivable A/c (3) 
10,000


Jan. 15

Sales A/c 
40,000

Jan. 15

Bills Receivable A/c (4) 
40,000



95,000


95,000


Books of Y
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 01

Purchases A/c  Dr. 
20,000




To X 

20,000



(Goods purchased from X) 







Jan. 01

X  Dr. 
20,000




To Bills Payable A/c (1) 

20,000



(Bill drawn by X, accepted) 






Jan. 08

Purchases A/c  Dr. 
25,000




To X 

25,000



(Goods purchased from X) 







Jan. 08

X  Dr. 
20,000




To Bills Payable A/c (2) 

20,000



(Bill drawn by X, accepted) 







Jan. 10

Purchases A/c  Dr. 
10,000




To X 

10,000



(Goods purchased from X) 







Jan.10

X  Dr. 
10,000




To Bills Payable A/c (3) 

10,000



(Bill drawn by X, accepted) 







Jan. 15

Purchases A/c  Dr. 
40,000




To X 

40,000



(Goods purchased from X) 







Jan. 15

X  Dr. 
40,000




To Bills Payable A/c (4) 

40,000



(Bill drawn by X, accepted) 







Mar. 05

Bills Payable A/c (1)  Dr. 
20,000




To Cash A/c 

20,000



(Bill honoured on maturity) 







Mar. 12

Bills Payable A/c (2)  Dr. 
25,000




To Cash A/c 

25,000



(Bill honoured on maturity) 







Mar.14

Bills Payable A/c (3)  Dr. 
10,000




To Cash A/c 

10,000



(Bill honoured on maturity) 







Mar.19

Bills Payable A/c (4)  Dr. 
40,000




To Cash A/c 

40,000



(Bill honoured on maturity) 


X’s Account


Dr.


Cr.


Date

Particulars

J.F.

Amount
(Rs)

Date

Particulars

J.F.

Amount
(Rs)


2017


2017



Jan. 01

Bills Payable A/c (1) 
20,000

Jan. 01

Purchases A/c 
20,000


Jan. 08

Bills Payable A/c (2) 
25,000

Jan. 08

Purchases A/c 
25,000


Jan. 10

Bills Payable A/c (3) 
10,000

Jan. 10

Purchases A/c 
10,000


Jan. 15

Bills Payable A/c (4) 
40,000

Jan. 15

Purchases A/c 
40,000



95,000


95,000


Working Note:
Calculation of Discounting Charges
$\mathrm{Discounting}\mathrm{Charges}=25,000\times \frac{9}{100}\times \frac{60}{365}=\mathrm{Rs}370$
Page No 18.59:
Question 12:
On January 1, 2017, Ajay sold goods to Balbir for ₹ 10,000 at a discount of 20%. On that date, Balbir accepted a bill, drawn on him by Ajay for ₹ 8,000 payable 3 months after sight. Having surplus funds, Balbir paid off the bill on 4th March, 2017 and was allowed a rebate of 18% per annum. Show Journal entries in the books of Ajay and Balbir.
Answer:
Book of Ajay
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 01

Balbir  Dr. 
8,000




Discount Allowed A/c 
2,000




To Sales A/c 

10,000



(Goods sold to Balbir) 







Jan. 01

Bills Receivable A/c  Dr. 
8,000




To Balbir 

8,000



(Bill accepted by Balbir) 







Mar. 04

Cash A/c  Dr. 
7,880




Rebate A/c  Dr. 
120




To Bills Receivable A/c 

8,000



(Bill retired under the rebate of 18% p.a. for one month) 


Books of Balbir
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2017





Jan. 01

Purchases A/c  Dr. 
8,000




To Ajay 

8,000



(Goods purchased from Ajay) 







Jan.01

Ajay  Dr. 
8,000




To Bills Payable A/c 

8,000



(Bill drawn by Ajay, accepted) 







Mar. 04

Bills Payable A/c  Dr. 
8,000




To Cash A/c 

7,880



To Rebate A/c 

120



(Bill retired under the rebate of 18% p.a. for one month) 


Working Note:
Calculation of amount of Rebate
$\mathrm{Amount}\mathrm{of}\mathrm{Rebate}=8,000\times \frac{18}{100}\times \frac{1}{12}=\mathrm{Rs}120$
Page No 18.59:
Question 13:
On 17th April, 2016, X sold goods to Y for ₹ 80,000 and draws a bill for 2 months upon Y for the amount due. Y accepted the bill and returned it to X. On due date the bill became dishonoured and X paid ₹ 400 as Noting Charges. Fifteen days later Y pays the amount due to X. Pass Journal entries in the books of both the parties.
Answer:
Books of X
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2016





Apr. 17

Y

Dr.

80,000




To Sales A/c


80,000



(Goods sold to Y)








Apr. 17

Bills Receivable A/c

Dr.

80,000




To Y


80,000



(Y accepted the bill)








June 20

Y

Dr.

80,400




To Bills Receivable A/c


80,000



To Cash A/c


400



(Bill dishonoured on due date and noting charges received)








July 05

Cash A/c

Dr.

80,400




To Y


80,400



(Cash received from Y)



Books of Y
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2016





Apr. 17

Purchases A/c

Dr.

80,000




To X


80,000



(Goods purchased from X)








Apr. 17

X

Dr.

80,000




To Bills Payable A/c


80,000



(Bill drawn by X, accepted)








June 20

Bills Payable A/c

Dr.

80,000




Noting Charges A/c

Dr.

400




To X


80,400



(Bills dishonoured on due date and notice charged paid)








July 05

X

Dr.

80,400




To Cash A/c


80,400



(Cash paid to X)



Page No 18.60:
Question 14(A):
On 1st April, 2016, B accepts a bill drawn by A at three months for ₹ 8,000 in payment of debt. On the due date the acceptance is dishonoured and A gets the bill noted paying ₹ 100. On 4th July, 2016 A draws a new bill payable after 73 days provided interest is paid in cash @ 15% p.a. To this B is agreeable. The bill is met on maturity.
Record these transactions in the Journal of both the parties.
Answer:
Books of A
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2016




Apr. 01

Bills Receivable A/c

Dr.

8,000




To B


8,000



(B accepted the bill)








July 04

B

Dr.

8,100




To Bills Receivable A/c


8,000



To Cash A/c


100



(Bill dishonoured on due date and noting charges received)








July 04

B

Dr.

243




To Interest A/c


243



(Interest due to be received)








July 04

Cash A/c

Dr.

243




Bills Receivable A/c

Dr.

8,100




To B


8,343



(B accepted the new bill)








Sept. 18

Cash

Dr.

8,100




To Bills Receivable A/c


8,100



(Bill honoured on maturity)



Books of B
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2016





Apr. 01

A

Dr.

8,000




To Bills Payable A/c


8,000



(Bill drawn by A, accepted)








July 04

Bills Payable A/c

Dr.

8,000




Noting Charges A/c

Dr.

100




To A


8,100



(Bill dishonoured on due date and noting charges paid)








July 04

Interest A/c

Dr.

243




To A


243



(Interest due to be paid)








July 04

A

Dr.

8,343




To Cash A/c


243



To Bills Payable A/c (New)


8,100



(New bill drawn by A, accepted)








Sept. 18

Bills Payable A/c

Dr.

8,100




To Cash A/c


8,100



(Bill honoured on maturity)



Working Note:
Calculation of amount of Interest
$\mathrm{Amount}\mathrm{of}\mathrm{Interest}=8,100\times \frac{15}{100}\times \frac{73}{365}=\mathrm{Rs}243$
Page No 18.60:
Question 14(B):
On 15th October, 2016, Y purchased goods worth ₹ 75,000 from X, and accepted a three months bill for this amount drawn by X. On the due date, it was dishonoured. Noting charges paid by X ₹ 600. On 18th January, 2017, Y requested X for renewal of the bill for another two months, for which X agrees, provided that interest is paid @ 15% p.a. in cash. Make Journal entries of these transactions in the books of X and Y.
Answer:
Books of X
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2016




Oct. 15

Y

Dr.

75,000




To Sales A/c


75,000



(Goods sold to Y)








Oct. 15

Bills Receivable A/c

Dr.

75,000




To Y


75,000



(Y accepted the bill)




2017




Jan. 18

Y

Dr.

75,600




To Bills Receivable A/c


75,000



To Cash A/c


600



(Bill dishonoured on due date and noting charges paid)








Jan. 18

Y

Dr.

1,890




To Interest A/c


1,890



(Interest due to be received)








Jan. 18

Cash A/c

Dr.

1,890




Bills Receivable A/c

Dr.

75,600




To Y


77,490



(Y accepted the new bill)








Mar. 21

Cash

Dr.

75,600




To Bills Receivable A/c


75,600



(Bill honoured on maturity)



Books of Y
Journal


Date

Particulars

L.F.

Debit
Amount
(Rs)

Credit
Amount
(Rs)


2016





Oct. 15

Purchases A/c

Dr.

75,000




To X


75,000



(Goods purchased from X)








Oct. 15

X

Dr.

75,000




To Bills Payable A/c


75,000



(Bill drawn by X, accepted)








2017




Jan. 18

Bills Payable A/c

Dr.

75,000




Noting Charges A/c

Dr.

600




To X


75,600



(Bill dishonoured on due date and noting charges paid)








Jan. 18

Interest A/c

Dr.

1,890




To X


1,890

