Question No 14 Chapter No 13 – D.K Goal 11 Class

Question No 14 Chapter No 13

Dishonour of bill discounted from the Bank

14. Asha sold goods worth 19,000 to Nisha on March 2, 2016. 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her
bank @ 10% p.a. On the due date Nisha dishonoured the bill and the bank paid 30 as noting charges. On 5th June, Nisha paid 3,030 including noting charges in cash and accepted a new bill at one month for the amount due to Asha together with interest @ 15% p.a.
Record the necessary journal entries in the books of Asha and Nisha

The solution of Question No 14 Chapter No 13: –

In the books of Asha’s (Drawer)
Date	Particulars		L.F.	Debit	Credit
2018
Mar.02	Nisha A/c	Dr.		19,000
	To Sale A/c				19,000
	(Being Goods sold to Nisha )
Mar.02	Bills Receivable A/c	Dr.		15,000
	Cash A/c	Dr.		4,000
	To Dinesh A/c				19,000
	(Being Nisha accepted the bill)
Mar.02	Bank A/c	Dr.		14,625
	Discounting Charges A/c	Dr.		375
	To Bills Receivable A/c				15,000
	(Being Bill discounted with the bank @18%)
June 05	Nisha A/c (15, 000 +30)	Dr.		15,030
	To Bank A/c				15,030
	(Being Bill dishonoured)
Jun. 05	Nisha A/c	Dr.		150
	To Interest A/c				150
	(Being Cash received from Dinesh)
Jun. 05	Cash A/c	Dr.		3,030
	Bills Receivable New A/c 12,000 +150	Dr.		12,150
	To Nisha A/c				15,180
	(Being New Acceptance received)

In the books of Nisha’s (Drawee)
Date	Particulars		L.F.	Debit	Credit
2016
Mar.02	Purchases A/c	Dr.		19,000
	To Asha A/c				19,000
	(Being Goods purchased from A)
Mar.02	Asha A/c	Dr.		19,000
	To Bills Payable A/c				15,000
	To Cash A/c				4,000
	(Being Acceptance received)
Jun.05	Bills Payable A/c	Dr.		15,000
	Noting Charges A/c	Dr.		30
	To A A/c				15,030
	(Being Bill dishonoured)
Jun.05	Interest A/c	Dr.		150
	To Asha A/c				150
	(Being Interest due to be paid)
Jun. 05	Asha A/c	Dr.		15,180
	To Bills Payable A/c 12,000 +150				12,150
	To Cash A/c				3,030
	(Being Interest due to be paid)

Working Note: –

Calculation of Discounting Charges

Discounting Charges	=	15,000	x	10	X	3
				100		12
	=	Rs 375

Calculation of the amount of Interest

Amount of Interest	=	12,000	x	15	X	1
				100		12
	=	Rs 604

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.