Question No 19 Chapter No 13
Three Bills of Exchange
19. On 1st Jan. 2017, Satish drew on Harish three bills of exchange in full settlement of claims the first for Rs 14,000 at one months; the second for Rs 16,000 at two months and the third for Rs 18,000 at three months. The bills were duly acceptance by Harish. The first bill was endorsed by Satish to his creditor Rajnish on 3rd Jan, 2017. the second bill was discounted on 15th Jan. for Rs 15,900 and third bill was sent to bank for collection on 4th Feb. All the bills were met on maturity except the second bill which was dishonoured, noting charges being paid Rs 240. Satish charged Rs 300 for interest from Harish and drew on him on him a fourth bill for two months for Rs 16,540. the fourth bill was duly met on maturity.
Give Journal entries in the book of Satish and Harish.
The solution of Question No 19 Chapter No 13: –
| In the books of A |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jan.1 | Bill Receivable A/c (i) | Dr. | 14,000 | ||
| Bill Receivable A/c (ii) | Dr. | 16,000 | |||
| Bill Receivable A/c (iii) | Dr. | 18,000 | |||
| To Harish A/c | 48,000 | ||||
| (Being three bills drew on Harish and acceptance received from him.) | |||||
| Jan.3 | Satish A/c | Dr. | 14,000 | ||
| To Bill Receivable A/c (i) | 14,000 | ||||
| (Being Bill endorsed to Satish) | |||||
| Jan.15 | Bank A/c | Dr. | 15,900 | ||
| Discount A/c | Dr. | 100 | |||
| To Bill Receivable A/c | 16,000 | ||||
| (Being second bill was discounted by Satish) | |||||
| Feb.4 | Bill Sent for collection A/c | Dr. | 18,000 | ||
| To Bill Receivable A/c | 18,000 | ||||
| (Being third bill was sent for collection) | |||||
| Mar.4 | Harish A/c | Dr. | 16,240 | ||
| To Bill Receivable A/c | 16,000 | ||||
| To noting Charges A/c | 240 | ||||
| (Being second bill was dishonoured and paid noting charges) | |||||
| Mar.4 | Harish A/c | Dr. | 300 | ||
| Interest A/c | 300 | ||||
| (Being interest charged on Harish) | |||||
| Mar.4 | Bill Receivable A/c (iv) | Dr. | 16,540 | ||
| To Harish A/c | 16,540 | ||||
| (Being new bill drawn on harish ) | |||||
| Jun.7 | Cash A/c | Dr. | 16,540 | ||
| To Bill Receivable A/c (iv) | 16,540 | ||||
| (Being the four bill received on maturity) | |||||
| In the books of B |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jan.1 | Satish A/c | Dr. | 48,000 | ||
| To Bill Payable A/c (i) | 14,000 | ||||
| To Bill Payable A/c (ii) | 16,000 | ||||
| To Bill Payable A/c (iii) | 18,000 | ||||
| (Being three bills drew by Satish acceptance by us.) | |||||
| Feb.4 | Bill Payable A/c (i) | Dr. | 14,000 | ||
| To Cash A/c | 14,000 | ||||
| (Being first bill payable paid on maturity) | |||||
| Mar.04 | Bill Payable A/c(ii) | Dr. | 16,000 | ||
| To Satish A/c | 16,000 | ||||
| (Being Bill dishonoured) | |||||
| Mar.04 | Satish A/c | Dr. | 16,540 | ||
| To Bill Payable A/c (iv) | 16,540 | ||||
| (Being four bill was acceptance by us) | |||||
| Jun.4 | Bill Payable A/c (iv) | Dr. | 16,540 | ||
| To Cash A/c | 16,540 | ||||
| (Being bill paid on maturity) | |||||
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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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