Question No 07 Chapter No 13
Sending the Bill to Bank for Collection
07. X draws a Y bill for Rs 4,000 which was duly accepted by Y,Y meets the bill on the due date. Show what entries would be passed in the books of X and U under each of the following circumstances:
- If X retains the bill till the due date
- If X discounts the same with his banker paying Rs 100 for discount
- If X endorse the same to his creditor Z, in full settlement of his debts of Rs 4,080
- If X sends the bills to his banker for collection.
The solution of Question No 07 Chapter No 13: –
| In the books of A (Drawer) |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2019 | |||||
| – | Bills Receivable A/c | Dr. | 4,000 | ||
| To Y A/c | 4,000 | ||||
| (Being Y accepted the bill) | |||||
| (i) | Cash A/c | Dr. | 4,000 | ||
| To Bills Receivable A/c | 4,000 | ||||
| (Being Bill honoured on maturity) | |||||
| (ii) | Bank A/c | Dr. | 3,900 | ||
| Discount A/c | Dr. | 100 | |||
| To Bills Receivable A/c | 4,000 | ||||
| (Being Bills sent to bank for Discount) | |||||
| (iii) | Z A/c | Dr. | 4,080 | ||
| To Bills Receivable A/c | 4,000 | ||||
| To Discount Received A/c | 80 | ||||
| (Being Bills endorsed to Z in full Settlements) | |||||
| (iv) | Sent for Collection A/c | Dr. | 4,000 | ||
| To Bills Receivable A/c | 4,000 | ||||
| (Being bill sent for collection) | |||||
| In the books of B (Drawee) |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2019 | |||||
| – | Y A/c | Dr. | 4,000 | ||
| To Bills Payable A/c | 4,000 | ||||
| (Being Bill drawn by X, accepted) | |||||
| (i) | Bills Payable A/c | Dr. | 4,000 | ||
| To Cash A/c | 4,000 | ||||
| (Being Bill honoured on maturity) | |||||
| (ii) | Bills Payable A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being Bill honoured on maturity) | |||||
| (iii) | Bills Payable A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being Bill honoured on maturity) | |||||
| (iv) | Bills Payable A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being Bill honoured on maturity) | |||||
https://tutorstips.com/bills-payable/
Also, Check out the solved question of all Chapters: –
D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution
- Chapter 1 Evolution of Accounting & Basic Accounting Terms
- Chapter 2 Accounting Equations
- Chapter 3 Meaning and Objectives of Accounting
- Chapter 4 Double Entry System
- Chapter 5 Books of Original Entry – Journal
- Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
- Chapter 7 Books of Original Entry – Cash Book (Coming soon)
- Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
- Chapter 9 Ledger (Coming soon)
- Chapter 10 Trial Balance and Errors (Coming soon)
- Chapter 11 Bank Reconciliation Statement (Coming soon)
- Chapter 12 Depreciation (Coming soon)
- Chapter 13 Bills of Exchange (Coming soon)
- Chapter 14 Generally Accepted Accounting Principles(GAAP)
- Chapter 15 Bases of Accounting
- Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
- Chapter 17 Capital and Revenue
- Chapter 18 Provisions and Reserves
- Chapter 19 Final Accounts (Coming soon)
- Chapter 20 Final Accounts – With Adjustments (Coming soon)
- Chapter 21 Errors and their Rectification (Coming soon)
- Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
- Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
- Chapter 24 Computerised Accounting System (Coming soon)
- Chapter 25 Introduction to Accounting Information System (Coming soon)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
