Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill) 1 09 Bill of Exchange (trade bill) Type A: Proforma Solution to Practice Q.1.: Solution to Practice Q.2.: STAMP Saumil Kapadia, Sector 5, Navi Mumbai 17 th Feb, 2013 Two months after date pay to me or my order the sum of Rupees Nineteen Sd/- Saumil Kapadia ACCEPTED 18 th Feb, 2013 Thousand Seven Hundred and Eighty only for the value received. To, Sujit Mehra, Shivaji Nagar, Pune ` 19,780/- Bill of Exchange Sd/- Sujit Mehra STAMP Sairaj Gandhi, S. V. Road, Bandra 5 th Dec, 2012 Four months after date pay to me or my order the sum of Rupees Ten Sd/- Sairaj Gandhi ACCEPTED 7 th Dec, 2012 Thousand only for the value received. Sd/- Harrison Paul To, Harrison Paul, MIDC Thane ` 10,000/- Bill of Exchange
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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
1
09 Bill of Exchange (trade bill)
Type A: Proforma Solution to Practice Q.1.: Solution to Practice Q.2.:
Sep 1 Bank A/c To Vijay’s A/c (Being balance amount received by cheque)
Dr. 8,000 8,000
Sep 1 Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
11,760 240
12,000
Total: 52,000 52,000 Solution to Practice Q.2.: In the Books of Bhagyashri (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Rupa’s A/c
To Sales A/c (Being good sold on credit)
Dr. 24,000 24,000
2. Cash A/c To Rupa’s A/c
(Being cash received on the spot)
Dr. 10,000 10,000
3. Bills Receivable A/c To Rupa’s A/c
(Being bill drawn for balance for 4 months)
Dr. 14,000 14,000
4. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
13,650 350
14,000
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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5. Rupa’s A/c To Bank A/c
(Being discounted bill dishonoured and noting charges paid by bank)
Dr. 14,200 14,200
6. Cash A/c To Rupa’s A/c
(Being part payment received along with full amount of noting charges)
Dr. 7,200 7,200
7. Rupa’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 100 100
8. Bills Receivable A/c To Rupa’s A/c
(Being new bill drawn for 2 months along with interest)
Dr. 7,100 7,100
Total: 90,600 90,600 Solution to Practice Q.3.: In the Books of Sparsh (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2013
Rashi’s A/c To Sales A/c
(Being goods sold on credit)
Dr.
13,000
13,000Jul 15
Jul 15 Bills Receivable I A/c To Rashi’s A/c (Being bill I drawn for 2 months)
Dr. 5,000 5,000
Jul 15 Bill Receivable II A/c To Rashi’s A/c (Being bill II drawn for 3 months)
Dr. 8,000 8,000
Aug 14 Bill Sent for Collection A/c To Bills Receivable I A/c (Being bill sent for collection)
Dr. 5,000 5,000
Aug 14 Cash / Bank A/c Discount A/c To Bills Receivable II A/c (Being bill discounted with the bank)
Dr. Dr.
7,840 160
8,000
Oct 18 Rashi’s A/c To Bill Sent for Collection A/c (Being bill sent for collection dishonoured)
Dr. 5,000 5,000
Oct 18 Rashi’s A/c To Cash A/c (Being noting charges paid)
Dr. 100 100
Total: 44,100 44,100
Rashi’s Account Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
2013 2013 Jul 15 To Sales A/c 13,000 Jul 15 By Bills Receivable I A/c 5,000Oct 18 To Bill Sent for Collection A/c 5,000 Jul 15 By Bills Receivable II A/c 8,000
Oct 18 To Cash A/c 100 By Balance c/d 5,100
18,100 18,100
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
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Solution to Practice Q.4.: In the Books of Sunita (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
2013 Sep 19 Vijay’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 25,000 2,5000
Sep 19 Bills Receivable A/c To Vijay’s A/c (Being bill drawn for 3 months)
Dr. 25,000 25,000
A. Dec 22 Cash A/c
To Bills Receivable A/c (Being bill honoured)
Dr. 25,000 25,000
B. Sep 19 Cash / Bank A/c
Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
24,062 938
25,000
C. Sep 19 Sachin’s A/c
To Bills Receivable A/c (Being bill endorsed to Sachin)
Dr. 25,000 25,000
D. Dec 16 Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent for collection)
Dr. 25,000 25,000
Dec 22 Cash A/c To Bill Sent for Collection A/c (Being bill sent for collection honoured)
Dr. 25,000 25,000
Total: 1,75,000 1,75,000
In the Books of Vijay (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
2013 Sep 19 Purchases A/c
To Sunita’s A/c (Being goods puchased on credit)
Dr. 25,000 25,000
Sep 19 Sunita’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 25,000 25,000
A. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
B. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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C. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
D. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
Total: 1,50,000 1,50,000 Solution to Practice Q.5.: In the Books of Jainee (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Hena’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 25,000 25,000
2. Bills Receivable A/c To Hena’s A/c (Being bill drawn for 3 months)
Dr. 20,000 20,000
3. Cash A/c To Hena’s A/c (Being balance paid by Hena)
Dr. 5,000 5,000
4. Purchases A/c To Viral’s A/c (Being goods purchased on credit)
Dr. 20,000 20,000
5. Viral’s A/c To Bills Receivable A/c (Being bill endorsed to Viral)
Dr. 20,000 20,000
6. Hena’s A/c To Viral’s A/c (Being endorsed bill dishonoured)
Dr. 20,000 20,000
7. Cash A/c To Hena’s A/c (Being noting charges and interest paid by Hena)
Dr. 850 850
8. Bills Receivable A/c To Hena’s A/c (Being new bill drawn)
Dr. 20,000 20,000
9. Cash A/c To Bills Receivable A/c (Being new bill honoured)
Dr. 20,000 20,000
Total: 1,50,850 1,50,850
In the Books of Viral (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Jainee’s A/c To Sales A/c (Being goods sold on credit)
Dr. 20,000 20,000
2. Bills Receivable A/c To Jainee’s A/c (Being endorsement received)
Dr. 20,000 20,000
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3. Jainee’s A/c To Bills Receivable A/c (Being bill dishonoured)
Dr. 20,000 20,000
4. Jainee’s A/c To Cash A/c (Being noting charges paid)
Dr. 150 150
Total: 60,150 60,150
In the Books of Jainee (Drawer) Hena’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
1. To Sales A/c 25,000 2. By Bills Receivable A/c 20,0006. To Viral’s A/c 20,000 3. By Cash A/c 5,000− To Interest A/c 700 7. By Cash A/c 850− To Viral’s A/c 150 8. By Bills Receivable A/c 20,000
45,850 45,850
Solution to Practice Q.6.: In the books of Bunty (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Vicky’s A/c (Being bill drawn for 3 months)
Dr. 12,000 12,000
2. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
11,800 200
12,000
3. Vicky’s A/c To Bank A/c
(Being discounted bill dishonoured and noting charges paid by bank)
Dr. 12,100 12,100
4. Bank A/c To Vicky’s A/c
(Being part payment received along with noting charges)
Dr. 3,100 3,100
5. Vicky’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 270 270
6. Bills Receivable A/c To Vicky’s A/c
(Being new bill drawn for 3 months with interest)
Dr. 9,270 9,270
7. Bill Sent for Collection A/c To Bills Receivable A/c
(Being bill sent to bank for collection)
Dr. 9,270 9,270
8. Bank A/c Bank Charges A/c
To Bill Sent for Collection A/c (Being bill honoured and bank charges debited)
Dr. Dr.
9,200 70
9,270
Total: 67,280 67,280
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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In the Books of Vicky (Drawee) Bunty’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
1. To Bills Payable A/c 12,000 − By Balance b/d 12,0003. To Bank A/c 3,100 2. By Bills Payable A/c 12,1005. To Bills Payable A/c 9,270 4. By Interest A/c 270 24,370 24,370
Solution to Practice Q.7.: In the books of Sakshi (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Seema’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 20,000 20,000
2. Bills Receivable A/c To Seema’s A/c (Being bill drawn for 3 months)
Dr. 20,000 20,000
3. Seema’s A/c To Bills Receivable A/c (Being retained bill cancelled)
Dr. 20,000 20,000
4. Seema’s A/c To Interest A/c (Being interest receivable)
Dr. 500 500
5. Cash A/c To Seema’s A/c (Being part payment received along with interest)
Dr. 10,500 10,500
6. Bills Receivable A/c To Seema’s A/c (Being new bill drawn for the balance amount due)
Dr. 10,000 10,000
7. Cash A/c To Bills Receivable A/c (Being new bill honoured)
Dr. 10,000 10,000
Total: 91,000 91,000 Solution to Practice Q.8.: In the Books of Priyesh (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2013
Bills Receivable A/c To Charmi’s A/c (Being bill drawn for 3 months)
Dr.
15,000
15,000Apr 30
May 4 Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection to bank)
Dr. 15,000 15,000
Aug 1 Charmi’s A/c To Bill Sent for Collection A/c (Being bill cancelled)
Dr. 15,000 15,000
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Aug 1 Charmi’s A/c To Interest A/c (Being interest receivable)
Dr. 400 400
Aug 1 Cash A/c To Charmi’s A/c (Being part payment received)
Dr. 5,000 5,000
Aug 1 Bills Receivable A/c To Charmi’s A/c (Being new bill drawn for the balance amount due along with interest)
Dr. 10,400 10,400
Aug 31 Charmi’s A/c To Bills Receivable A/c (Being new bill dishonoured)
Dr. 10,400 10,400
Nov 1 Cash / Bank A/c Bad debts A/c To Charmi’s A/c (Being Charmi became insolvent and only ` 5,000 amount recovered)
Dr. Dr.
5,000 5,400
10,400
Total: 81,600 81,600
In the Books of Charmi (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
2013 Priyesh’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr.
15,000
15,000Apr 30
Aug 1 Bills Payable A/c To Priyesh’s A/c (Being bill cancelled)
Dr. 15,000 15,000
Aug 1 Priyesh’s A/c To Cash A/c (Being part payment made)
Dr. 5,000 5,000
Aug 1 Interest A/c To Priyesh’s A/c (Being interest payable on balance amount)
Dr. 400 400
Aug 1 Priyesh’s A/c To Bills Payable A/c (Being new bill accepted for 2 months along with interest)
Dr. 10,400 10,400
Nov 1 Bills Payable A/c To Priyesh’s A/c (Being new bill dishonoured)
Dr. 10,400 10,400
Nov 1 Priyesh’s A/c To Cash / Bank A/c To Deficiency A/c (Being amount paid in full settlement)
Dr. 10,400 5,000 5,400
Total: 66,600 66,600
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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Solution to Practice Q.9.: In the Books of Sanjay (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Bills Receivable A/c To Pappu’s A/c
(Being bill drawn for 3 months)
Dr. 12,000 12,000
2. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
11,700 300
12,000
3. Pappu’s A/c To Bills Receivable A/c
(Being bill dishonoured and noting charges paid)
Dr. 12,200 12,200
4. Cash A/c To Pappu’s A/c
(Being part payment received)
Dr. 4,000 4,000
5. Bills Receivable A/c To Pappu’s A/c
(Being new bill accepted)
Dr. 8,200 8,200
6. Vinayak’s A/c To Bills Receivable A/c
(Being new bill endorsed)
Dr. 8,200 8,200
Total: 56,600 56,600
In the Books of Pappu (Drawee) Sanjay’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
1. To Bills Payable A/c 12,000 - By Balance b/d 12,0003. To Cash A/c 4,000 2. By Bills Payable A/c 12,0005. To Bills Payable A/c 8,200 4. By Noting Charges A/c 200
24,200 24,200 Solution to Practice Q.10.: In the Books of Giridhar (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2007
Bills Receivable A/c To Shridhar’s A/c
(Being bill drawn for 3 months)
Dr.
24,000
24,000Mar 12
Mar 12 Murlidhar’s A/c To Bills Receivable A/c
(Being bill endorsed)
Dr. 24,000 24,000
Jun 12 Shridhar’s A/c To Murlidhar’s A/c
(Being endorsed bill cancelled on request of Shridhar)
Dr. 24,000 24,000
Jun 12 Bank A/c To Shridhar’s A/c
(Being part payment received)
Dr. 12,000 12,000
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Jun 12 Shridhar’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 200 200
Jun 12 Bills Receivable A/c To Shridhar’s
(Being new bill drawn for 2 months)
Dr. 12,200 12,200
Jun 12 Bill Sent for Collection A/c To Bills Receivable A/c
(Being new bill sent to bank for collection)
Dr. 12,200 12,200
Aug 14 Bank A/c Bank Charges A/c
To Bill Sent for Collection A/c (Being new bill collected by bank)
Dr. Dr.
12,100 100
12,200
Total: 1,20,800 1,20,800Shridhar’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
2007 2007 Mar 12 To Balance b/d 24,000 Mar 12 By Bills Receivable A/c 24,000Jun 12 To Murlidhar’s A/c 24,000 Jun 12 By Bank A/c 12,000Jun 12 To Interest A/c 200 Jun 12 By Bills Receivable 12,200
48,200 48,200
Solution to Practice Q.11.: In the Books of Subhash (Drawer)
Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Bills Receivable A/c To Prakash’s A/c
(Being bill drawn for 3 months)
Dr. 20,000 20,000
2. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
19,500 500
20,000
3. Prakash’s A/c To Bank A/c
(Being dishonour of bill and noting charges paid by bank)
Dr. 20,100 20,100
4. Cash A/c To Prakash’s A/c
(Being part payment and noting charges received in cash)
Dr. 10,100 10,100
5. Prakash’s A/c To Interest A/c
(Being interest receivable)
Dr. 500 500
6. Bills Receivable A/c To Prakash’s A/c
(Being new bill received for balance amount including interest)
Dr. 10,500 10,500
Total: 81,200 81,200
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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Prakash’s Account Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
– To Balance b/d 20,000 1. By Bills Receivable A/c 20,0003. To Bank A/c 20,100 4. By Cash/Bank A/c 10,1005. To Interest A/c 500 6. By Bills Receivable A/c 10,500
40,600 40,600 Solution to Practice Q.12.: In the Books of Jaya (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2010
Bills Receivable A/c To Maya’s A/c
(Being bill drawn for 4 months)
Dr.
54,000
54,000Jan 1
Jan 1 Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
52,560 1,440
54,000
May 4 Maya’s A/c To Bank A/c
(Being bill cancelled on request of Maya)
Dr. 54,000 54,000
May 4 Cash A/c To Maya’s A/c
(Being part payment received)
Dr. 36,000 36,000
May 4 Maya’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 360 360
May 4 Bills Receivable A/c To Maya’s A/c
(Being new bill drawn for 2 months along with interest)
Dr. 18,360 18,360
May 4 Bill Sent for Collection A/c To Bills Receivable A/c
(Being bill sent to bank for collection)
Dr. 18,360 18,360
Jul 7 Bank A/c To Bill Sent for Collection A/c
(Being bill honoured)
Dr. 18,360 18,360
Total: 2,53,440 2,53,440
In the Books of Maya (Drawee) Jaya’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
2010 2010 Jan 1 To Bills Payable A/c 54,000 Jan 1 By Balance b/d 54,000May 4 To Cash A/c 36,000 May 4 By Bills Payable A/c 54,000May 4 To Bills Payable A/c 18,360 May 4 By Interest A/c 360
1,08,360 1,08,360
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
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Solution to Practice Q.13.: In the Books of Suhas (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Sunil’s A/c To Bills Payable A/c
(Being bill accepted for 3 months)
Dr. 10,000 10,000
2. Bills Payable A/c To Sunil’s A/c (Being bill cancelled)
Dr. 10,000 10,000
3. Interest A/c To Sunil’s A/c (Being interest payable on the balance amount)
Dr. 200 200
4. Sunil’s A/c To Cash A/c (Being part payment made along with interest on balance amount)
Dr. 5,700 5,700
5. Sunil’s A/c To Bills Payable A/c (Being new bill accepted for 2 months for the balance amount)
Dr. 4,500 4,500
6. Bills Payable A/c To Cash A/c To Rebate A/c (Being bill retired and rebate received)
Dr. 4,500 4,403
97
Total: 34,900 34,900
In the Books of Sunil (Drawer) Suhas’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
− To Balance b/d 10,000 1 By Bills Receivable A/c 10,0003 To Bank A/c 10,000 4 By Cash A/c 5,7005 To Interest A/c 200 6 By Bills Receivable A/c 4,500
20,200 20,200
Solution to Practice Q.14.: In the Books of Ram (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Bills Receivable A/c To Krishna’s A/c (Being bill drawn for 3 months)
Dr. 20,000 20,000
2. Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
19,500 500
20,000
3. Krishna’s A/c To Bank A/c (Being discounted bill cancelled at the request of Krishna)
Dr. 20,000 20,000
4. Krishna’s A/c To Interest A/c (Being interest receivable)
Dr. 350 350
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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5. Bills Receivable A/c To Krishna’s A/c (Being new bill drawn for 2 months including noting charges and interest)
Dr. 20,500 20,500
6. Cash A/c Rebate A/c To Bills Receivable A/c (Being bill retired and ` 1,500 rebate allowed)
Dr. Dr.
19,000 1,500
20,500
Total: 1,01,350 1,01,350 In the Books of Krishna (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Ram’s A/c
To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 20,000 20,000
2. Bills Payable A/c To Ram’s A/c (Being bill cancelled)
Dr. 20,000 20,000
3. Interest A/c To Ram’s A/c (Being interest payable)
Dr. 350 350
4. Ram’s A/c To Bills Payable A/c (Being new bill accepted for 2 months including interest and noting charges)
Dr. 20,500 20,500
5. Bills Payable A/c To Rebate A/c To Cash A/c (Being bill retired and ` 1,500 rebate received)
Dr. 20,500 1,500
19,000
Total: 81,350 81,350 Solution to Practice Q.15.: In the Books of Sanjay (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Ravi’s A/c (Being bill drawn for 2 months)
Dr. 13,500 13,500
2. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)
Dr. 13,500 13,500
3. Ravi’s A/c To Bill Sent for Collection A/c (Being bill sent for collection dishonoured)
Dr. 13,500 13,500
4. Ravi’s A/c To Cash A/c (Being noting charges paid)
Dr. 100 100
5. Cash A/c To Ravi’s A/c (Being part payment received along with interest and noting charges)
Dr. 3,850 3,850
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6. Bills Receivable A/c To Ravi’s A/c (Being new bill drawn for the balance amount due)
Dr. 10,000 10,000
7. Cash A/c Rebate A/c To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
9,500 500
10,000
Total: 64,450 64,450
In the Books of Ravi (Drawee) Sanjay’s Account
Dr. Cr.
Date Particulars J.F. Amount
` Date Particulars J.F.
Amount `
1. To Bills Payable A/c 13,500 − By Balance b/d 13,5004. To Cash A/c 3,850 2. By Bills Payable A/c 13,5005. To Bills Payable A/c 10,000 3. By Interest A/c 350
27,350 27,350
Solution to Practice Q.16.: In the Books of Smita (Drawee)
Journal Entries
Date Particulars L.F. Debit `
Credit `
2010 Purchases A/c
To Ramesh’s A/c (Being goods purchased on credit)
Dr.
36,000
36,000Apr 1
Apr 1 Ramesh’s A/c To Bills Payable A/c
(Being bill accepted for 2 months)
Dr. 36,000 36,000
Jun 4 Bills Payable A/c Noting Charges A/c
To Ramesh’s A/c (Being bill dishonoured and noting charges payable)
Dr. Dr.
36,000 60
36,060
Jun 4 Ramesh’s A/c To Cash A/c
(Being part payment made)
Dr. 18,060 18,060
Jun 4 Interest A/c To Ramesh’s A/c
(Being interest payable on the balance amount)
Dr. 450 450
Jun 4 Ramesh’s A/c To Bills Payable A/c
(Being new bill accepted for 2 months)
Dr. 18,450 18,450
Jul 7 Bills Payable A/c To Cash A/c To Rebate A/c
(Being bill retired and rebate received)
Dr. 18,450 18,200
250
Total: 1,63,470 1,63,470
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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Solution to Practice Q.17.: In the Books of Anjali (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
2011 Ravina’s A/c
To Sales A/c (Being goods sold on credit)
Dr.
5,000
5,000Apr 1
Apr 1 Cash A/c Discount A/c To Ravina’s A/c (Being part payment received and discount of 5% allowed)
Dr. Dr.
1,900 100
2,000
Apr 1 Bills Receivable A/c To Ravina’s A/c (Being bill drawn for the balance amount due)
Dr. 3,000 3,000
i. Jul 4 Cash A/c
To Bills Receivable A/c (Being bill honoured)
Dr. 3,000 3,000
ii. May 1 Cash / Bank A/c
Discount A/c To Bills Receivable A/c (Bieng bill discounted with bank)
Dr. Dr.
2,940 60
3,000
Aug 4 Ravina’s A/c To Bank A/c (Being discounted bill dishonoured)
Dr. 3,000 3,000
iii. Aug 4 Bills Sent for Collection A/c
To Bills Receivable A/c (Being bill sent for collection)
Dr. 3,000 3,000
Aug 4 Bank A/c Bank Charges A/c To Bill Sent for Collection A/c (Being amount collected by Bank and Charges debited)
Dr. Dr.
2,800 200
3,000
iv. Apr 1 Kantilal’s A/c
To Bills Receivable A/c (Being bill endorsed to Kantilal)
Dr. 3,000 3,000
Aug 4 Ravina’s A/c To Kantilal’s A/c (Being endorsed bill dishonoured)
Dr. 3,000 3,000
Aug 4 Cash / Bank A/c Bad debts A/c To Ravina’s A/c (Being Ravina became insolvent and only 20% amount recovered)
Dr. Dr.
600 2,400
3,000
Total: 34,000 34,000
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In the Books of Ravina (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
2011 Purchases A/c To Anjali’s A/c (Being goods purchased on credit)
Dr.
5,000
5,000Apr 1
Apr 1 Anjali’s A/c To Cash A/c To Discount A/c (Being part payment made and discount of 5% received)
Dr. 2,000 1,900
100
Apr 1 Anjali’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 3,000 3,000
i. Jul 4 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 3,000 3,000
ii. Aug 4 Bills Payable A/c
To Anjali’s A/c (Being bill dishonoured)
Dr. 3,000 3,000
iii. Aug 4 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 3,000 3,0000
iv. Aug 4 Bills Payable A/c
To Anjali’s A/c (Being bill dishonoured)
Dr. 3,000 3,000
Aug 4 Anjali’s A/c To Cash / Bank A/c To Deficiency A/c (Being Ravina became insolvent and only 20% amount paid)
Dr. 3,000 600
2,400
Total: 25,000 25,000 Solution to Practice Q.18.: In the Books of Sunil (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Ramesh’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 15,000 15,000
2. Bills Receivable A/c To Ramesh’s A/c (Being bill drawin for 2 months)
Dr. 15,000 15,000
3. Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
14,875 125
15,000
4. Ramesh’s A/c To Bank A/c (Being discounted bill dishnoured)
Dr. 15,000 15,000
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5. Cash A/c To Ramesh’s A/c (Being part payment received)
Dr. 8,000 8,000
6. Ramesh’s A/c To Interest A/c (Being interest receivable)
Dr. 140 140
7. Bills Receivable A/c To Ramesh’s A/c (Being new bill drawn for the balance amount due along with interest)
Dr. 7,140 7,140
8. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)
Dr. 7,140 7,140
9. Ramesh’s A/c To Bill Sent for Collection A/c (Being bill dishnoured)
Dr. 7,140 7,140
10. Cash / Bank A/c Bad Debts A/c To Ramesh’s A/c (Being Ramesh declared insolvent and only 30% amount recovered)
Dr. Dr.
2,142 4,998
7,140
Total: 96,700 96,700 Solution to Practice Q.19.: In the Books of Sushant (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Rohan’s A/c (Being bill drawn for 2 months)
Dr. 10,000 10,000
2. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)
Dr. 10,000 10,000
3. Rohan’s A/c To Bill Sent for Collection A/c (Being bill cancelled at the request of Rohan)
Dr. 10,000 10,000
4. Rohan’s A/c To Interest A/c (Being interest receivable)
Dr. 500 500
5. Cash A/c To Rohan’s A/c (Being part payment received along with interest)
Dr. 5,500 5,500
6. Bills Receivable A/c To Rohan’s A/c (Being new bill drawn on balance amount due)
Dr. 5,000 5,000
7. Rohan’s A/c To Bills Receivable A/c (Being bill dishonoured)
Dr. 5,000 5,000
8. Cash / Bank A/c Bad Debts A/c To Rohan’s A/c (Being Rohan became insolvent and only 40% amount recovered)
Dr. Dr.
2,000 3,000
5,000
Total: 51,000 51,000
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In the Books of Sushant (Drawer) Rohan’s Account
Dr. Cr.
Date Particulars J.F.Amount
` Date Particulars J.F.
Amount `
− To Balance b/d 10,000 1. By Bills Receivable A/c 10,0003. To Bill Sent for Collection A/c 10,000 5. By Cash A/c 5,5004. To Interest A/c 500 6. By Bills Receivable A/c 5,0007. To Bills Receivable A/c 5,000 8. By Cash / Bank A/c 2,000 8. By Bad Debts A/c 3,000
25,500 25,500
Solution to Practice Q.20.: In the Books of Manisha (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Priti’s A/c (Being bill drawn for 4 months)
Dr. 9,000 9,000
2. Shital’s A/c To Bills Receivable A/c
(Being bill endorsed)
Dr. 9,000 9,000
3. Priti’s A/c To Shital’s A/c
(Being bill cancelled on request of Priti)
Dr. 9,000 9,000
4. Priti’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 120 120
5. Cash A/c To Priti’s A/c
(Being part payment received along with interest)
Dr. 3,120 3,120
6. Bills Receivable A/c To Priti’s A/c
(Being new bill drawn for 3 months)
Dr. 6,000 6,000
7. Priti’s A/c To Bills Receivable A/c
(Being new bill dishonoured due to insolvency)
Dr. 6,000 6,000
8. Cash/Bank A/c Dr. Bad Debts A/c Dr.
To Priti’s A/c (Being Priti declared insolvent and only 50% amount recovered)
3,000 3,000
6,000
Total: 48,240 48,240 Solution to Practice Q.21.: In the Books of Madhav (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Kashinath’s A/c
To Bills Payable A/c (Being bill drawn for 3 months)
Dr. 40,000 40,000
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2. Bills Payable A/c To Kashinath’s A/c
(Being bill cancelled on the request of Madhav)
Dr. 40,000 40,000
3. Interest A/c To Kashinath’s A/c
(Being interest payable on the balance amount)
Dr. 250 250
4. Kashinath’s A/c To Cash/Bank A/c
(Being part payment made along with interest)
Dr. 30,250 30,250
5. Kashinath’s A/c To Bills Payable A/c
(Being new bill accepted for 3 months)
Dr. 10,000 10,000
6. Bills Payable A/c To Kashinath’s A/c
(Being new bill dishonoured)
Dr. 10,000 10,000
7. Kashinath’s A/c To Cash/Bank A/c To Deficiency A/c
(Being Madhav declared insolvent and only 35% amount paid)
Dr. 10,000 3,500 6,500
Total: 1,40,500 1,40,500
In the Books of Kashinath (Drawer) Madhav’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
– To Balance b/d 40,000 1. By Bills Receivable A/c 40,0002. To Bank A/c 40,000 4. By Cash/Bank A/c 30,2503. To Interest A/c 250 5. By Bills Receivable A/c 10,0006. To Bills Receivable A/c 10,000 7. By Cash/Bank A/c 3,500 7. By Bad Debts A/c 6,500
90,250 90,250
Solution to Practice Q.22.: In the Books of Narendra (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Surendra’s A/c
To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 8,000 8,000
2. Bills Payable A/c To Surendra’s A/c
(Being bill cancelled on the request of Narendra)
Dr. 8,000 8,000
3. Interest A/c To Surendra’s A/c
(Being interest payable on the balance amount)
Dr. 50 50
4. Surendra’s A/c To Cash A/c
(Being part payment made along with interest)
Dr. 6,050 6,050
5. Surendra’s A/c To Bills Payable A/c
(Being new bill accepted)
Dr. 2,000 2,000
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6. Bills Payable A/c To Surendra’s A/c
(Being new bill dishonoured)
Dr. 2,000 2,000
7. Surendra’s A/c Dr. To Cash A/c To Deficiency A/c
(Being Narendra declared insolvent and only 25% amount paid)
2,000 500
1,500
Total: 28,100 28,100 Solution to Practice Q.23.: In the Books of Dhamanekar (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`2008
Jun 01 Purchases A/c To Pednekar’s A/c
(Being goods purchased on credit)
Dr. 40,000 40,000
Jun 01 Pednekar’s A/c To Bills Payable A/c
(Being bill accepted for 3 months)
Dr. 40,000 40,000
Sep 04 Bills Payable A/c To Pednekar’s A/c
(Being bill dishonoured)
Dr. 40,000 40,000
Sep 04 Noting Charges A/c To Pednekar’s A/c
(Being noting charges paid)
Dr. 200 200
Sep 04 Interest A/c To Pednekar’s A/c
(Being interest payable on the balance amount)
Dr. 1,206 1,206
Sep 04 Pednekar’s A/c To Bills Payable’s A/c
(Being new bill accepted for 3 months)
Dr. 41,406 41,406
Dec 07 Bills Payable A/c To Pednekar’s A/c
(Being new bill dishonoured due to insolvency)
Dr. 41,406 41,406
Dec 07 Pednekar’s A/c Dr. To Cash A/c To Deficiency A/c
(Being Pednekar declared insolvent and only 1/3rd amount paid)
41,406 13,802 27,604
Total: 2,45,624 2,45,624 Solution to Practice Q.24.: In the Books of Avadhoot
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Nisha’s A/c To Nandini’s A/c
(Being endorsed bill dishonoured and noting charges paid)
Dr.
5,100
5,1001.
B. Dhanashri’s A/c
To Bills Receivable A/c (Being bill cancelled on the request of Dhanashri)
Dr.
2,400
2,4002.
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3. Cash A/c To Dhanashri’s A/c
(Being part payment received)
Dr. 1,200 1,200
4. Dhanashri’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 36 36
5. Bills Receivable A/c To Dhanashri’s A/c
(Being new bill drawn with interest)
Dr. 1,236 1,236
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
5,900
100
6,000
6.
D. Shashikala’s A/c
To Bank A/c (Being discounted bill dishonoured and noting charges paid by bank)
Dr.
4,070
4,0707.
E. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
6,000
6,0008.
Total: 26,042 26,042 Solution to Practice Q.25.: In the Books of Vivek
Journal Entries Date Particulars L.F. Debit
` Credit
`2010
Mahesh’s A/c
To Sameer’s A/c (Being endorsed bill dishonoured and noting charges paid)
Dr.
32,800
32,800
A. Jan 1
B. Subhash’s A/c
To Bills Receivable A/c (Being bill dishonoured)
Dr.
30,000
30,000Feb 1
Feb 1 Cash A/c To Subhash’s A/c
(Being part payment received)
Dr. 14,000 14,000
Feb 1 Subhash’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 400 400
Feb 1 Bills Receivable A/c To Subhash’s A/c
(Being new bill accepted for 3 months along with interest)
Dr. 16,400 16,400
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
11,600
400
12,000
Feb 5
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D. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
20,000
20,000Mar 1
Mar 1 Sohan’s A/c To Bill Sent for Collection A/c
(Being bill dishonoured)
Dr. 20,000 20,000
Total: 1,45,600 1,45,600 Solution to Practice Q.26.: In the Books of Ashwin
Journal Entries
Date Particulars L.F. Debit
` Credit
` A.
Bank A/c Bank Charges A/c
To Bill Sent for Collection A/c (Being bill sent for collection collected by bank and charges debited)
Dr. Dr.
5,700
50
5,750
1.
B. Nitin’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Nitin)
Dr.
7,200
7,2002.
3. Cash A/c To Nitin’s A/c
(Being part payment received)
Dr. 2,200 2,200
4. Nitin’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 100 100
5. Bills Receivable A/c To Nitin’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 5,100 5,100
C. Bills Payable A/c
To Bills Receivable A/c To Discount A/c
(Being our acceptance to Pravin discharged by endorsing Bhavin’s acceptance to us)
Dr.
4,250
4,000 250
6.
D. Cash/Bank A/c Bad Debts A/c
To Jatin’s A/c (Being Jatin became insolvent and only 40% amount recovered)
Dr. Dr.
3,400 5,100
8,500
7.
Total: 33,100 33,100
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Solution to Practice Q.27.: In the Books of Manoj Patil Journal Entries
Date Particulars L.F. Debit `
Credit `
2010 Vaishali’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Vaishali)
Dr.
22,400
22,400
A. Jan 1
Jan 1 Cash A/c To Vaishali’s A/c
(Being part payment received)
Dr. 12,000 12,000
Jan 1 Vaishali’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 312 312
Jan 1 Bills Receivable A/c To Vaishali’s A/c
(Being fresh bill accepted for 3 month along with interest)
Dr. 10,712 10,712
B. Feb 1 Cash A/c
Bad Debts A/c To Sadashiv’s A/c
(Being 45% amount received in full settlement)
Dr. Dr.
12,600 15,400
28,000
C. Cash A/c Rebate A/c
To Bill Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
11,940
60
12,000
Mar 1
D. Bharati’s A/c
To Bills Receivable A/c To Discount A/c
(Being bill endorsed and discount earned)
Dr.
6,000
5,750 250
Mar 31
Total: Solution to Practice Q.28.: In the Books of Motilal
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Jyoti’s A/c To Bhavna’s A/c
(Being bill dishonoured and noting charges paid)
Dr.
3,750
3,750
1.
B. Anil’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Anil)
Dr.
3,400
3,4002.
3. Cash A/c To Anil’s A/c
(Being part payment received)
Dr. 900 900
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4. Anil’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 50 50
5. Bills Receivable A/c To Anil’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 2,550 2,550
C. 6. Cash A/c
Rebate A/c To Bills Receivable A/c
(Being bill retired and rebate allowed)
Dr. Dr.
3,850 150
4,000
D. Arun’s A/c
To Bank A/c (Being discounted bill dishonoured and noting charges paid)
Dr.
7,100
7,100 7.
Total: 21,750 21,750 Solution to Practice Q.29.: In the Books of Ranbir
Journal Entries
Date Particulars L.F. Debit `
Credit `
A. Salman’s A/c
To Sonam’s A/c (Being endorsed bill dishonoured and noting charges paid by Sonam)
Dr.
3,280
3,2801.
B. Ravindra’s A/c
To Bills Receivable A/c (Being bill cancelled on the request of Ravindra)
Dr.
4,800
4,8002.
3. Cash A/c To Ravindra’s A/c
(Being part payment received in cash)
Dr. 1,800 1,800
4. Ravindra’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 60 60
5. Bills Receivable A/c To Ravindra’s A/c
(Being new bill drawn for 2 months along with interest)
Dr. 3,060 3,060
C. Cash/Bank A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
7,920
80
8,000
6.
D. Shirin’s A/c
To Bank A/c (Being discounted bill dishonoured and noting charges paid by bank)
Dr.
5,575
5,5757.
Total: 26,575 26,575
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Solution to Practice Q.30.: In the Books of Sharad Journal Entries
Date Particulars L.F. Debit `
Credit `
A. Vasant’s A/c
To Hemant’s A/c (Being endorsed bill dishonoured and noting charges paid)
Dr.
5,050
5,050i.
B. Pramod’s A/c
To Bills Receivable A/c (Being bill dishonoured)
Dr.
15,000
15,000ii.
iii. Pramod’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 250 250
iv. Cash A/c To Pramod’s A/c
(Being part payment received)
Dr. 5,000 5,000
v. Bills Receivable A/c To Pramod’s A/c
(Being new bill drawn for 3 months with interest)
Dr. 10,250 10,250
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being retired and rebate allowed)
Dr. Dr.
7,500
100
7,600
vi.
D. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
10,000
10,000vii.
viii. Amol’s A/c To Bill Sent for Collection A/c
(Being bill dishonoured)
Dr. 10,000 10,000
Total: 63,150 63,150 Solution to Practice Q.31.: In the Books of Nilesh
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Sanjay’s A/c To Naresh’s A/c
(Being bill dishonoured and noting charges paid)
Dr.
8,200
8,200i.
B. Sujit’s A/c
To Bills Receivable A/c (Being bill dishonoured)
Dr.
4,800
4,800ii.
iii. Cash A/c To Sujit’s A/c
(Being part payment received)
Dr. 1,600 1,600
iv. Sujit’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 96 96
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v. Bills Receivable A/c To Sujit’s A/c
(Being new bill drawn for 3 months)
Dr. 3,296 3,296
C. Cash A/c Rebate A/c
To Bills Payable A/c (Being bill retired and rebate allowed)
Dr. Dr.
23,760
240
24,000
vi.
D. Prashant’s A/c
To Bank A/c (Being bill dishonoured and noting charges paid by bank)
Dr.
8,160
8,160vii.
Total: 50,152 50,152 Solution to Practice Q.32.: In the Books of Kantilal
Journal Entries Date Particulars L.F.
Debit `
Credit `
A. Sawan’s A/c
To Sandhya’s A/c (Being bill dishonoured and noting charges paid)
Dr.
16,300
16,300i.
B. Nalini’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Nalini)
Dr.
6,000
6,000ii.
iii. Cash A/c To Nalini’s A/c
(Being part payment received)
Dr. 2,000 2,000
iv. Nalini’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 120 120
v. Bills Receivable A/c To Nalini’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 4,120 4,120
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
9,950
50
10,000
vi.
D. Meenakshi’s A/c
To Bill Sent for Collection A/c (Being bill dishonoured)
Dr.
8,000
8,000vii.
Total: 46,540 46,540
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Solution to Practice Q.33.: In the Books of Bhaskar Journal Entries
Date Particulars L.F. Debit `
Credit `
A. Nishad’s A/c
To Suresh’s A/c (Being bill dishonoured and noting charges paid)
Dr.
2,525
2,525i.
B. Rajesh’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Rajesh)
Dr.
7,500
7,500ii.
iii. Cash A/c To Rajesh’s A/c
(Being part payment received)
Dr. 2,500 2,500
iv. Rajesh’s A/c To Interest A/c
(Being interest receivable on balance amount)
Dr. 125 125
v. Bills Receivable A/c To Rajesh’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 5,125 5,125
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
3,750
50
3,800
vi.
D. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
5,000
5,000vii.
viii. Dayaram’s A/c To Bill Sent for Collection A/c
(Being bill sent to bank for collection dishonoured by Dayaram)
Dr. 5,000 5,000
Total: 31,575 31,575 Solution to Practice Q.34.: In the Books of Kedarnath
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Aloknath’s A/c To Badrinath’s A/c
(Being endorsed bill dishonoured and noting charges paid)
Dr.
16,500
16,500i.
B. Somnath’s A/c
To Bills Receivable A/c (Being bill cancelled on the request of Somnath)
Dr.
14,400
14,400ii.
iii. Cash A/c To Somnath’s A/c
(Being part payment received)
Dr. 4,400 4,400
iv. Somnath’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 200 200
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v. Bills Receivable A/c To Somnath’s A/c
(Being new bill drawn along with interest)
Dr. 10,200 10,200
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
10,250
250
10,500
vi.
D. Cash A/c Bad Debts A/c
To Ramnath’s A/c (Being Ramnath declared insolvent and only 50% amount recovered)
Dr. Dr.
6,250 6,250
12,500
vii.
Total: 68,700 68,700 Solution to Practice Q.35.: In the Books of Jwala
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
John’s A/c To Abdul’s A/c
(Being endorsed bill dishonoured and noting charges paid)
Dr.
16,200
16,200i.
B. Sony’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Sony)
Dr.
24,000
24,000ii.
iii. Sony’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 300 300
iv. Cash A/c To Sony’s A/c
(Being part payment received along with interest)
Dr. 12,300 12,300
v. Bills Receivable A/c To Sony’s A/c
(Being new bill drawn for 3 months)
Dr. 12,000 12,000
C. Cash A/c Bad Debts A/c
To Trupti’s A/c (Being Trupti became insolvent and only 40% amount recovered)
Dr. Dr.
14,400 21,600
36,000
vi.
D. Rani’s A/c
To Bills Receivable A/c To Discount A/c
(Being bill endorsed in full settlement and discount received)