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

Question No 11 A Chapter No 13

Dishonor of a Bill

11.(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 dishonored 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 parties.

The solution of Question No 11 A Chapter No 13: –

In the books of X (Drawer)
Date	Particulars		L.F.	Debit	Credit
2019
Apr.1	Bills Receivable A/c	Dr.		8,000
	To B A/c				8,000
	(Being Y accepted the bill)
Jul. 04	B A/c	Dr.		8,100
	To Bills Receivable A/c				8,000
	To Cash A/c				100
	(Being Bill dishonoured on the due date and noting charges received)
Jul. 04	B A/c	Dr.		243
	To Interest A/c				243
	(Being Bill dishonoured on due date and noting charges received)
Jul. 04	Cash A/c	Dr.		243
	Bills Receivable A/c	Dr.		8,100
	To Cash A/c				8,343
	(Being Bill dishonoured on due date and noting charges received )
Sept. 18	Cash A/c	Dr.		8,100
	To Bills Receivable A/c				8,100
	(Being Bill honoured on maturity)

In the books of Y (Drawee)
Date	Particulars		L.F.	Debit	Credit
2019
Apr. 01	X A/c	Dr.		8,000
	To Bills Payable A/c				8,000
	(Being Bill drawn by X, accepted)
Jul.04	Bills Payable A/c	Dr.		8,000
	Noting Charges A/c	Dr.		100
	To X A/c				8,000
	(Being Bill retired under their bate of @18)
Jul.04	Interest A/c	Dr.		243
	To A A/c				243
	(Being Interest due to be paid)
Jul.05	A  A/c	Dr.		8,100
	To Cash A/c				8,100
	(Being Cash paid to X)

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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)

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