Question No 08 Chapter No 13 – D.K Goal 11 Class

Question No 08 Chapter No 13

Sending the Bill to Bank for Collection

08. On January 1,2018 Ajay sold goods to Balbir for Rs 10,000 at a discount of 20%. On that date, Balbir acceptance a bill drawn on him by Ajay for Rs 8,000 payable 3 months after Sight. Having surplus funds, Balbir paid off the bill on 4th March 2018 and was allowed a rebate of 18% per annum. Show journal entries in the books of Ajay and Balbir.

The solution of Question No 08 Chapter No 13: –

In the books of Ajay (Drawer)
Date	Particulars		L.F.	Debit	Credit
2019
Jan.01	Balbir A/c	Dr.		8,000
	Discount A/c	Dr.		2,000
	To Y A/c				10,000
	(Being Goods sold to Balbir)
Jan.01	Sent for Collection A/c	Dr.		8,000
	To Balbir A/c				8,000
	(Being Bill accepted by Balbir)
Mar.04	Cash A/c	Dr.		7,880
	Rebate A/c	Dr.		120
	To Bills Receivable A/c				8,000
	(Being Bills sent to bank for Discount)

In the books of Balbir (Drawee)
Date	Particulars		L.F.	Debit	Credit
2019
Jan. 01	Purchases A/c	Dr.		4,000
	To Ajay A/c				4,000
	(Being Goods purchased from Ajay)
Jan. 01	Ajay A/c	Dr.		4,000
	To Bills Payable A/c				4,000
	(Being 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
	(Being Bill retired under there bate of @18)

Working Note: –

Calculation of Discounting Charges

Amount of Rebate	=	8,000	x	18	X	1
				100		12
	=	Rs 120

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.