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

Question No 11 B Chapter No 13

Dishonor of a Bill

11 (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.

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

In the books of X (Drawer)
Date	Particulars		L.F.	Debit	Credit
2016
Oct.15	Y A/c	Dr.		75,000
	To Sale A/c				75,000
	(Being goods sold to Y)
Oct.15	Bills Receivable A/c	Dr.		75,000
	To Y A/c				75,000
	(Being Bill dishonoured on due date and noting charges received )
2017
Jan.18	Y A/c	Dr.		75,600
	To Bills Receivable A/c				75,000
	To Cash A/c				600
	(Being Bill dishonoured on due date and noting charges received)
Jan.18	Y A/c	Dr.		1,890
	To Interest A/c				1,890
	(Being Interest due to be received)
Jan. 18	Cash A/c	Dr.		1,890
	Bills Receivable A/c	Dr.		75,600
	To Y A/c				77,490
	(Being Y accepted the new bill)
Mar. 21	Cash A/c	Dr.		75,600
	To Bills Receivable A/c				75,600
	(Being Bill honoured on maturity)

In the books of Y (Drawee)
Date	Particulars		L.F.	Debit	Credit
2016
Oct. 15	Purchases A/c	Dr.		75,000
	To X A/c				75,000
	(Being Goods purchased from X)
Oct. 15	X A/c	Dr.		75,000
	To Bills Payable A/c				75,000
	(Being Bill drawn by X, accepted)
2017
Jan. 18	Bills Payable A/c	Dr.		75,000
	Noting Charges A/c	Dr.		600
	To X A/c				75,600
	(Being Bill dishonoured on due date and noting charges paid)
Jan. 18	Interest A/c	Dr.		1,890
	To X A/c				1,890
	(Being Interest due to be paid)
Jan.18	X A/c	Dr.		77,490
	To Cash A/c				1,890
	To Bills Payable A/c				75,600
	(Being New bill drawn by X, accepted)
Mar. 21	Bills Payable A/c	Dr.		75,600
	To Cash A/c				75,600
	(Being Interest due to be paid)

Working Note: –

Calculation of Discounting Charges

Amount of Rebate	=	75,600	x	15	X	1
				100		12
	=	Rs 1,890

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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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