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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
1
09 Bill of Exchange (trade bill)
Type A: Proforma Solution to Practice Q.1.: Solution to Practice Q.2.:
STAMP Saumil Kapadia, Sector 5, Navi Mumbai 17th Feb, 2013
Two months after date pay to me or my order the sum of Rupees Nineteen
Sd/- Saumil Kapadia
ACCEPTED
18th Feb, 2013
Thousand Seven Hundred and Eighty only for the value received.
To, Sujit Mehra, Shivaji Nagar, Pune
` 19,780/-
Bill of Exchange
Sd/- Sujit Mehra
STAMP Sairaj Gandhi, S. V. Road, Bandra 5th Dec, 2012
Four months after date pay to me or my order the sum of Rupees Ten
Sd/- Sairaj Gandhi
ACCEPTED
7th Dec, 2012
Thousand only for the value received.
Sd/- Harrison Paul
To, Harrison Paul, MIDC Thane
` 10,000/-
Bill of Exchange
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
2
Solution to Practice Q.3.: Solution to Practice Q.4.:
STAMP Mr. Avadhoot Raktade 586, Main Road, Ajara. 1st May, 2010
To, Mr. Mukund Aglawe 133, Chandni Chowk, Panvel.
Sd/- Mr. Avadhoot Raktade
Two months after date pay to me or my order the sum of Rupees Eight
ACCEPTED
` 8,800/-
Bill of Exchange
Sd/- Mr. Mukund Aglawe
5th May, 2010
Thousand and Eight Hundred only for the value received.
STAMP Shri. Suraj Patil Bazarpeth, Sawantwadi. 1st Jan, 2011
To, Anita Desai M.G. Road, Pune.
Sd/- Shri. Suraj Patil
Four months after date pay to me or my order the sum of Rupees Nineteen
ACCEPTED
` 19,500/-
Bill of Exchange
Sd/- Anita Desai 4th Jan, 2011
Thousand and Five Hundred only for the value received.
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
3
Solution to Practice Q.5.: Solution to Practice Q.6.:
STAMP Ms. Suman Raje Kolhapur 1st Jan, 2013
Three months after date pay to Ms. Krupa Mehta, Thane or her’s order
Sd/- Ms. Suman Raje ACCEPTED
5th Jan, 2013
the sum of Rupees Twelve Thousand only for the value received.
Sd/- Mrs. Rajshree Masrani
To, Mrs. Rajshree Masrani Ahmednagar.
` 12,000/-
Bill of Exchange
STAMP Harshil Sajnani Lokhandwala, Kandivali 18th Mar, 2013
Two months after date pay to Anagha Shashtri, Sector 12, Navi Mumbai
Sd/- Harshil Sajnani ACCEPTED
15th Mar, 2013
or her’s order the sum of Rupees Thirty Two Thousand only for the value
Sd/- Sameer Mahajan
To, Sameer Mahajan Kalwa, Mumbai
` 32,000/-
Bill of Exchange
received.
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
4
Solution to Practice Q.7.: Solution to Practice Q.8.:
STAMP Vitthal Mule 112, Bhawani Road, Wadepuri. 20th Apr, 2009
To, Kishor Gavate 99, Tilak Road, Janapuri.
Sd/- Vitthal Mule
Sixty days after date pay to Mr. Ajay Jamadar, 12, Rajarampuri, Kolhapur
ACCEPTED
` 5,700/-
Bill of Exchange
Sd/- Kishor Gavate 23rd Apr, 2009
or his order the sum of Rupees Five Thousand and Seven Hundred only for the value received.
STAMP Shreenath Patil Bridavan Dham, Nasik 15th Oct, 2007
To, Narayan Shastri Shiv Colony, Dadar, Mumbai.
Sd/- Shreenath Patil
Ninety days after date pay to Mr. Gopal Sharma, Samrat Nagar, Thane or
ACCEPTED
` 9,990/-
Bill of Exchange
Sd/- Narayan Shastri 19th Oct, 2007
his order the sum of Rupees Nine Thousand Nine Hundred and Ninety only
for the value received.
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
5
Solution to Practice Q.9.: Solution to Practice Q.10.:
STAMP Mrs. Archana Patil Vikram Nagar, Patan. 28th Dec, 2007
To, Mrs. Nalini Maniyar Jalaram Krupa, Mul.
Sd/- Mrs. Archana Patil
Ninety days after date pay to Mrs. Sheela Ghatkar, Mangal Yog, CIDCO,
ACCEPTED
` 17,575/-
Bill of Exchange
Sd/- Mrs. Nalini Maniyar
2nd Jan, 2008
Hundred and Seventy Five only for value received.
Aurangabad or her’s order the sum of Rupees Seventeen Thousand Five
STAMP Shri. Amar Patil Guruwar Peth, Karad. 31st Dec, 2007
To, Shri. Mehul Maniyar Mul.
Sd/- Shri. Amar Patil
Two months after date pay to Mr. Yogesh Ghatkar, CIDCO, Aurangabad
ACCEPTED
` 9,500/-
Bill of Exchange
Sd/- Shri. Mehul Maniyar
2nd Jan, 2008
only for the value received.
or his order the sum of Rupees Nine Thousand and Five Hundred
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
6
Solution to Practice Q.11.: Solution to Practice Q.12.:
STAMP Renuka Hazari 104,Umang, Ambajogai. 20th Nov, 2007
To, Vimal Wadikar Nanded Road, Udgir.
Sd/- Renuka Hazari
Sixty days after date pay to Radhika Desai, Parli Vaijanath or her’s order
ACCEPTED
` 5,500/-
Bill of Exchange
Sd/- Vimal Wadikar 22nd Nov, 2007
received.
the sum of Rupees Five Thousand and Five Hundred only for the value
STAMP Subhash Suryawanshi Main Road, Ajara 25th May, 2006
To, Madhukar Bharati Amboli Road, Sawantwadi
Sd/- Subhash Suryawanshi
Sixty days after date pay to Mr. Manoj Desai, Amboli or his order the sum
ACCEPTED
` 5,700/-
Bill of Exchange
Sd/- Madhukar Bharati 28th May, 2006
of Rupees Five Thousand and Seven Hundred only for the value received.
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
7
Solution to Practice Q.13.: Solution to Practice Q.14.:
STAMP Jaya Ansari Bajaj Road, Vile Parle (West). 21st Sep, 2012
Three months after date pay to Mamta Beherwani, Malaviya Road, Vile
Sd/- Jaya Ansari ACCEPTED
24th Sep, 2012
Parle or her’s order the sum of Rupees Twenty Two Thousand only for the
Sd/- Sameera Parmar
To, Sameera Parmar Senapati Bapat Marg, Lower Parel.
` 22,000/-
Bill of Exchange
value received.
STAMP Rajesh Patil 205, High Towers, M.G.Road, Pune. 5th Jan, 2011
Nashik or her’s order the sum of Rupees Nine Thousand and Five
To, Rajneesh Gandhi 210, Business House, Main Road, Surat.
Sd/- Rajesh Patil
Sixty days after date pay to Vasundhara Joshi, 403, Commerce House,
ACCEPTED
` 9,500
Bill of Exchange
Sd/- Rajneesh Gandhi
10th Jan, 2011
Hundred only for the value received.
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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Solution to Practice Q.15.: Solution to Practice Q.16.:
STAMP Rupesh Mishra Shivaji Park, Dadar, Mumbai. 10th Dec, 2012
Ninty days after date pay to Vimal Jain, Kolhapur or his order the sum of
Sd/- Rupesh Mishra
ACCEPTED
14th Dec, 2012
Rupees Seventeen Thousand Eight Hundred only for the value received.
To, Amit Kale Vikram Nagar, Patan
` 17,800/-
Bill of Exchange
Sd/- Amit Kale
STAMP Rajkumar Mohan, S.V.Road, Borivali 5th Jan, 2013
One month after date pay to Sonia Sainani, Kopri, Thane or her’s order
Sd/- Rajkumar Mohan
ACCEPTED FOR ` 45,000 ONLY
7th Jan, 2013
the sum of Rupees Forty Nine Thousand only for the value received.
To, Madan Raj L.B.S. Road, Thane.
` 49,000/-
Bill of Exchange
Sd/- Madan Raj
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
9
Solution to Practice Q.17.: Solution to Practice Q.18.:
STAMP Bhavik Maniyar Bazar Chowk, MUL. 1st Jan, 2008
To, Mangesh Ghatkar Mangal Yog, Aurangabad.
Sd/- Bhavik Maniyar
Three months after date pay to Mr. Abhijit Patil, 423, Vikram Nagar,
ACCEPTED FOR ` 12,000 ONLY
` 15,555/-
Bill of Exchange
Sd/- Mangesh Ghatkar
3rd Jan, 2008
Patan or his order the sum of Rupees Fifteen Thousand Five Hundred
and Fifty Five only for the value received.
STAMP Ajit Patil Viveknagar, Pune. 22nd Feb, 2008
To, Sujit Kale Main Road, Latur.
Two months after date pay to Mr. Ranjit Jagadale, Nashik or his order
ACCEPTED FOR ` 5,000 ONLY
` 5,500/-
Bill of Exchange
Sd/- Sujit Kale
27th Feb, 2008
received.
the sum of Rupees Five Thousand and Five Hundred only for the value
Sd/- Ajit Patil
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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Solution to Practice Q.19.:
Type B: Practical Questions Solution to Practice Q.1.: In the Books of Vijay
Journal Entries
Date Particulars L.F. Debit
` Credit
` 2012
Ajay’s A/c To Sales A/c
(Being goods sold on credit)
Dr.
12,000
12,000Aug 1
Aug 1 Bills Receivable A/c To Ajay’s A/c (Being bill drawn for 3 months)
Dr. 12,000 12,000
Sep 1 Purchases A/c To Raj’s A/c (Being goods purchased on credit)
Dr. 20,000 20,000
Sep 1 Raj’s A/c To Bills Receivable A/c To Bank A/c (Being bill endorsed to Raj and balance amount paid by cheque)
Dr. 20,000 12,000 8,000
Total: 64,000 64,000
STAMP Ramesh Mishra L.B.S. Road, Ghatkopar Mumbai. 17th Feb, 2014
Amaravati or his order the sum of Rupees Twenty Five Thousand only
To, Nandkumar Sharma, Laxmi Road, Pune
Sd/- Ramesh Mishra
Ninety days after date pay to Mr. Rupesh Kumar Pande, Rajkamal Chowk,
ACCEPTED FOR ` 20,000 ONLY
` 25,000
Bill of Exchange
Sd/- Nandkumar Sharma
20th Feb, 2014
for the value received.
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
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In the Books of Ajay Journal Entries
Date Particulars L.F. Debit `
Credit `
2012 Purchases A/c
To Vijay’s A/c (Being goods purchased on credit)
Dr.
12,000
12,000Aug 1
Aug 1 Vijay’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 12,000 12,000
Nov 4 Bills Payable A/c To Cash A/c (Being bill honoured)
Dr. 12,000 12,000
Total: 36,000 36,000
In the Books of Raj Journal Entries
Date Particulars L.F. Debit `
Credit `
2012 Vijay’s A/c
To Sales A/c (Being goods sold on credit)
Dr.
20,000
20,000Sep 1
Sep 1 Bills Receivable A/c To Vijay’s A/c (Being endorsement received)
Dr. 12,000 12,000
Sep 1 Bank A/c To Vijay’s A/c (Being balance amount received by cheque)
Dr. 8,000 8,000
Sep 1 Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
11,760 240
12,000
Total: 52,000 52,000 Solution to Practice Q.2.: In the Books of Bhagyashri (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Rupa’s A/c
To Sales A/c (Being good sold on credit)
Dr. 24,000 24,000
2. Cash A/c To Rupa’s A/c
(Being cash received on the spot)
Dr. 10,000 10,000
3. Bills Receivable A/c To Rupa’s A/c
(Being bill drawn for balance for 4 months)
Dr. 14,000 14,000
4. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
13,650 350
14,000
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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5. Rupa’s A/c To Bank A/c
(Being discounted bill dishonoured and noting charges paid by bank)
Dr. 14,200 14,200
6. Cash A/c To Rupa’s A/c
(Being part payment received along with full amount of noting charges)
Dr. 7,200 7,200
7. Rupa’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 100 100
8. Bills Receivable A/c To Rupa’s A/c
(Being new bill drawn for 2 months along with interest)
Dr. 7,100 7,100
Total: 90,600 90,600 Solution to Practice Q.3.: In the Books of Sparsh (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2013
Rashi’s A/c To Sales A/c
(Being goods sold on credit)
Dr.
13,000
13,000Jul 15
Jul 15 Bills Receivable I A/c To Rashi’s A/c (Being bill I drawn for 2 months)
Dr. 5,000 5,000
Jul 15 Bill Receivable II A/c To Rashi’s A/c (Being bill II drawn for 3 months)
Dr. 8,000 8,000
Aug 14 Bill Sent for Collection A/c To Bills Receivable I A/c (Being bill sent for collection)
Dr. 5,000 5,000
Aug 14 Cash / Bank A/c Discount A/c To Bills Receivable II A/c (Being bill discounted with the bank)
Dr. Dr.
7,840 160
8,000
Oct 18 Rashi’s A/c To Bill Sent for Collection A/c (Being bill sent for collection dishonoured)
Dr. 5,000 5,000
Oct 18 Rashi’s A/c To Cash A/c (Being noting charges paid)
Dr. 100 100
Total: 44,100 44,100
Rashi’s Account Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
2013 2013 Jul 15 To Sales A/c 13,000 Jul 15 By Bills Receivable I A/c 5,000Oct 18 To Bill Sent for Collection A/c 5,000 Jul 15 By Bills Receivable II A/c 8,000
Oct 18 To Cash A/c 100 By Balance c/d 5,100
18,100 18,100
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
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Solution to Practice Q.4.: In the Books of Sunita (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
2013 Sep 19 Vijay’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 25,000 2,5000
Sep 19 Bills Receivable A/c To Vijay’s A/c (Being bill drawn for 3 months)
Dr. 25,000 25,000
A. Dec 22 Cash A/c
To Bills Receivable A/c (Being bill honoured)
Dr. 25,000 25,000
B. Sep 19 Cash / Bank A/c
Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
24,062 938
25,000
C. Sep 19 Sachin’s A/c
To Bills Receivable A/c (Being bill endorsed to Sachin)
Dr. 25,000 25,000
D. Dec 16 Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent for collection)
Dr. 25,000 25,000
Dec 22 Cash A/c To Bill Sent for Collection A/c (Being bill sent for collection honoured)
Dr. 25,000 25,000
Total: 1,75,000 1,75,000
In the Books of Vijay (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
2013 Sep 19 Purchases A/c
To Sunita’s A/c (Being goods puchased on credit)
Dr. 25,000 25,000
Sep 19 Sunita’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 25,000 25,000
A. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
B. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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C. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
D. Dec 22 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 25,000 25,000
Total: 1,50,000 1,50,000 Solution to Practice Q.5.: In the Books of Jainee (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Hena’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 25,000 25,000
2. Bills Receivable A/c To Hena’s A/c (Being bill drawn for 3 months)
Dr. 20,000 20,000
3. Cash A/c To Hena’s A/c (Being balance paid by Hena)
Dr. 5,000 5,000
4. Purchases A/c To Viral’s A/c (Being goods purchased on credit)
Dr. 20,000 20,000
5. Viral’s A/c To Bills Receivable A/c (Being bill endorsed to Viral)
Dr. 20,000 20,000
6. Hena’s A/c To Viral’s A/c (Being endorsed bill dishonoured)
Dr. 20,000 20,000
7. Cash A/c To Hena’s A/c (Being noting charges and interest paid by Hena)
Dr. 850 850
8. Bills Receivable A/c To Hena’s A/c (Being new bill drawn)
Dr. 20,000 20,000
9. Cash A/c To Bills Receivable A/c (Being new bill honoured)
Dr. 20,000 20,000
Total: 1,50,850 1,50,850
In the Books of Viral (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Jainee’s A/c To Sales A/c (Being goods sold on credit)
Dr. 20,000 20,000
2. Bills Receivable A/c To Jainee’s A/c (Being endorsement received)
Dr. 20,000 20,000
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
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3. Jainee’s A/c To Bills Receivable A/c (Being bill dishonoured)
Dr. 20,000 20,000
4. Jainee’s A/c To Cash A/c (Being noting charges paid)
Dr. 150 150
Total: 60,150 60,150
In the Books of Jainee (Drawer) Hena’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
1. To Sales A/c 25,000 2. By Bills Receivable A/c 20,0006. To Viral’s A/c 20,000 3. By Cash A/c 5,000− To Interest A/c 700 7. By Cash A/c 850− To Viral’s A/c 150 8. By Bills Receivable A/c 20,000
45,850 45,850
Solution to Practice Q.6.: In the books of Bunty (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Vicky’s A/c (Being bill drawn for 3 months)
Dr. 12,000 12,000
2. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
11,800 200
12,000
3. Vicky’s A/c To Bank A/c
(Being discounted bill dishonoured and noting charges paid by bank)
Dr. 12,100 12,100
4. Bank A/c To Vicky’s A/c
(Being part payment received along with noting charges)
Dr. 3,100 3,100
5. Vicky’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 270 270
6. Bills Receivable A/c To Vicky’s A/c
(Being new bill drawn for 3 months with interest)
Dr. 9,270 9,270
7. Bill Sent for Collection A/c To Bills Receivable A/c
(Being bill sent to bank for collection)
Dr. 9,270 9,270
8. Bank A/c Bank Charges A/c
To Bill Sent for Collection A/c (Being bill honoured and bank charges debited)
Dr. Dr.
9,200 70
9,270
Total: 67,280 67,280
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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In the Books of Vicky (Drawee) Bunty’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
1. To Bills Payable A/c 12,000 − By Balance b/d 12,0003. To Bank A/c 3,100 2. By Bills Payable A/c 12,1005. To Bills Payable A/c 9,270 4. By Interest A/c 270 24,370 24,370
Solution to Practice Q.7.: In the books of Sakshi (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Seema’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 20,000 20,000
2. Bills Receivable A/c To Seema’s A/c (Being bill drawn for 3 months)
Dr. 20,000 20,000
3. Seema’s A/c To Bills Receivable A/c (Being retained bill cancelled)
Dr. 20,000 20,000
4. Seema’s A/c To Interest A/c (Being interest receivable)
Dr. 500 500
5. Cash A/c To Seema’s A/c (Being part payment received along with interest)
Dr. 10,500 10,500
6. Bills Receivable A/c To Seema’s A/c (Being new bill drawn for the balance amount due)
Dr. 10,000 10,000
7. Cash A/c To Bills Receivable A/c (Being new bill honoured)
Dr. 10,000 10,000
Total: 91,000 91,000 Solution to Practice Q.8.: In the Books of Priyesh (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2013
Bills Receivable A/c To Charmi’s A/c (Being bill drawn for 3 months)
Dr.
15,000
15,000Apr 30
May 4 Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection to bank)
Dr. 15,000 15,000
Aug 1 Charmi’s A/c To Bill Sent for Collection A/c (Being bill cancelled)
Dr. 15,000 15,000
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Aug 1 Charmi’s A/c To Interest A/c (Being interest receivable)
Dr. 400 400
Aug 1 Cash A/c To Charmi’s A/c (Being part payment received)
Dr. 5,000 5,000
Aug 1 Bills Receivable A/c To Charmi’s A/c (Being new bill drawn for the balance amount due along with interest)
Dr. 10,400 10,400
Aug 31 Charmi’s A/c To Bills Receivable A/c (Being new bill dishonoured)
Dr. 10,400 10,400
Nov 1 Cash / Bank A/c Bad debts A/c To Charmi’s A/c (Being Charmi became insolvent and only ` 5,000 amount recovered)
Dr. Dr.
5,000 5,400
10,400
Total: 81,600 81,600
In the Books of Charmi (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
2013 Priyesh’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr.
15,000
15,000Apr 30
Aug 1 Bills Payable A/c To Priyesh’s A/c (Being bill cancelled)
Dr. 15,000 15,000
Aug 1 Priyesh’s A/c To Cash A/c (Being part payment made)
Dr. 5,000 5,000
Aug 1 Interest A/c To Priyesh’s A/c (Being interest payable on balance amount)
Dr. 400 400
Aug 1 Priyesh’s A/c To Bills Payable A/c (Being new bill accepted for 2 months along with interest)
Dr. 10,400 10,400
Nov 1 Bills Payable A/c To Priyesh’s A/c (Being new bill dishonoured)
Dr. 10,400 10,400
Nov 1 Priyesh’s A/c To Cash / Bank A/c To Deficiency A/c (Being amount paid in full settlement)
Dr. 10,400 5,000 5,400
Total: 66,600 66,600
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
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Solution to Practice Q.9.: In the Books of Sanjay (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Bills Receivable A/c To Pappu’s A/c
(Being bill drawn for 3 months)
Dr. 12,000 12,000
2. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
11,700 300
12,000
3. Pappu’s A/c To Bills Receivable A/c
(Being bill dishonoured and noting charges paid)
Dr. 12,200 12,200
4. Cash A/c To Pappu’s A/c
(Being part payment received)
Dr. 4,000 4,000
5. Bills Receivable A/c To Pappu’s A/c
(Being new bill accepted)
Dr. 8,200 8,200
6. Vinayak’s A/c To Bills Receivable A/c
(Being new bill endorsed)
Dr. 8,200 8,200
Total: 56,600 56,600
In the Books of Pappu (Drawee) Sanjay’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
1. To Bills Payable A/c 12,000 - By Balance b/d 12,0003. To Cash A/c 4,000 2. By Bills Payable A/c 12,0005. To Bills Payable A/c 8,200 4. By Noting Charges A/c 200
24,200 24,200 Solution to Practice Q.10.: In the Books of Giridhar (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2007
Bills Receivable A/c To Shridhar’s A/c
(Being bill drawn for 3 months)
Dr.
24,000
24,000Mar 12
Mar 12 Murlidhar’s A/c To Bills Receivable A/c
(Being bill endorsed)
Dr. 24,000 24,000
Jun 12 Shridhar’s A/c To Murlidhar’s A/c
(Being endorsed bill cancelled on request of Shridhar)
Dr. 24,000 24,000
Jun 12 Bank A/c To Shridhar’s A/c
(Being part payment received)
Dr. 12,000 12,000
Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
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Jun 12 Shridhar’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 200 200
Jun 12 Bills Receivable A/c To Shridhar’s
(Being new bill drawn for 2 months)
Dr. 12,200 12,200
Jun 12 Bill Sent for Collection A/c To Bills Receivable A/c
(Being new bill sent to bank for collection)
Dr. 12,200 12,200
Aug 14 Bank A/c Bank Charges A/c
To Bill Sent for Collection A/c (Being new bill collected by bank)
Dr. Dr.
12,100 100
12,200
Total: 1,20,800 1,20,800Shridhar’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
2007 2007 Mar 12 To Balance b/d 24,000 Mar 12 By Bills Receivable A/c 24,000Jun 12 To Murlidhar’s A/c 24,000 Jun 12 By Bank A/c 12,000Jun 12 To Interest A/c 200 Jun 12 By Bills Receivable 12,200
48,200 48,200
Solution to Practice Q.11.: In the Books of Subhash (Drawer)
Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Bills Receivable A/c To Prakash’s A/c
(Being bill drawn for 3 months)
Dr. 20,000 20,000
2. Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
19,500 500
20,000
3. Prakash’s A/c To Bank A/c
(Being dishonour of bill and noting charges paid by bank)
Dr. 20,100 20,100
4. Cash A/c To Prakash’s A/c
(Being part payment and noting charges received in cash)
Dr. 10,100 10,100
5. Prakash’s A/c To Interest A/c
(Being interest receivable)
Dr. 500 500
6. Bills Receivable A/c To Prakash’s A/c
(Being new bill received for balance amount including interest)
Dr. 10,500 10,500
Total: 81,200 81,200
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Prakash’s Account Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
– To Balance b/d 20,000 1. By Bills Receivable A/c 20,0003. To Bank A/c 20,100 4. By Cash/Bank A/c 10,1005. To Interest A/c 500 6. By Bills Receivable A/c 10,500
40,600 40,600 Solution to Practice Q.12.: In the Books of Jaya (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`2010
Bills Receivable A/c To Maya’s A/c
(Being bill drawn for 4 months)
Dr.
54,000
54,000Jan 1
Jan 1 Bank A/c Discount A/c
To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
52,560 1,440
54,000
May 4 Maya’s A/c To Bank A/c
(Being bill cancelled on request of Maya)
Dr. 54,000 54,000
May 4 Cash A/c To Maya’s A/c
(Being part payment received)
Dr. 36,000 36,000
May 4 Maya’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 360 360
May 4 Bills Receivable A/c To Maya’s A/c
(Being new bill drawn for 2 months along with interest)
Dr. 18,360 18,360
May 4 Bill Sent for Collection A/c To Bills Receivable A/c
(Being bill sent to bank for collection)
Dr. 18,360 18,360
Jul 7 Bank A/c To Bill Sent for Collection A/c
(Being bill honoured)
Dr. 18,360 18,360
Total: 2,53,440 2,53,440
In the Books of Maya (Drawee) Jaya’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
2010 2010 Jan 1 To Bills Payable A/c 54,000 Jan 1 By Balance b/d 54,000May 4 To Cash A/c 36,000 May 4 By Bills Payable A/c 54,000May 4 To Bills Payable A/c 18,360 May 4 By Interest A/c 360
1,08,360 1,08,360
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Solution to Practice Q.13.: In the Books of Suhas (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Sunil’s A/c To Bills Payable A/c
(Being bill accepted for 3 months)
Dr. 10,000 10,000
2. Bills Payable A/c To Sunil’s A/c (Being bill cancelled)
Dr. 10,000 10,000
3. Interest A/c To Sunil’s A/c (Being interest payable on the balance amount)
Dr. 200 200
4. Sunil’s A/c To Cash A/c (Being part payment made along with interest on balance amount)
Dr. 5,700 5,700
5. Sunil’s A/c To Bills Payable A/c (Being new bill accepted for 2 months for the balance amount)
Dr. 4,500 4,500
6. Bills Payable A/c To Cash A/c To Rebate A/c (Being bill retired and rebate received)
Dr. 4,500 4,403
97
Total: 34,900 34,900
In the Books of Sunil (Drawer) Suhas’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
− To Balance b/d 10,000 1 By Bills Receivable A/c 10,0003 To Bank A/c 10,000 4 By Cash A/c 5,7005 To Interest A/c 200 6 By Bills Receivable A/c 4,500
20,200 20,200
Solution to Practice Q.14.: In the Books of Ram (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
1. Bills Receivable A/c To Krishna’s A/c (Being bill drawn for 3 months)
Dr. 20,000 20,000
2. Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with bank)
Dr. Dr.
19,500 500
20,000
3. Krishna’s A/c To Bank A/c (Being discounted bill cancelled at the request of Krishna)
Dr. 20,000 20,000
4. Krishna’s A/c To Interest A/c (Being interest receivable)
Dr. 350 350
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5. Bills Receivable A/c To Krishna’s A/c (Being new bill drawn for 2 months including noting charges and interest)
Dr. 20,500 20,500
6. Cash A/c Rebate A/c To Bills Receivable A/c (Being bill retired and ` 1,500 rebate allowed)
Dr. Dr.
19,000 1,500
20,500
Total: 1,01,350 1,01,350 In the Books of Krishna (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Ram’s A/c
To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 20,000 20,000
2. Bills Payable A/c To Ram’s A/c (Being bill cancelled)
Dr. 20,000 20,000
3. Interest A/c To Ram’s A/c (Being interest payable)
Dr. 350 350
4. Ram’s A/c To Bills Payable A/c (Being new bill accepted for 2 months including interest and noting charges)
Dr. 20,500 20,500
5. Bills Payable A/c To Rebate A/c To Cash A/c (Being bill retired and ` 1,500 rebate received)
Dr. 20,500 1,500
19,000
Total: 81,350 81,350 Solution to Practice Q.15.: In the Books of Sanjay (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Ravi’s A/c (Being bill drawn for 2 months)
Dr. 13,500 13,500
2. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)
Dr. 13,500 13,500
3. Ravi’s A/c To Bill Sent for Collection A/c (Being bill sent for collection dishonoured)
Dr. 13,500 13,500
4. Ravi’s A/c To Cash A/c (Being noting charges paid)
Dr. 100 100
5. Cash A/c To Ravi’s A/c (Being part payment received along with interest and noting charges)
Dr. 3,850 3,850
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6. Bills Receivable A/c To Ravi’s A/c (Being new bill drawn for the balance amount due)
Dr. 10,000 10,000
7. Cash A/c Rebate A/c To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
9,500 500
10,000
Total: 64,450 64,450
In the Books of Ravi (Drawee) Sanjay’s Account
Dr. Cr.
Date Particulars J.F. Amount
` Date Particulars J.F.
Amount `
1. To Bills Payable A/c 13,500 − By Balance b/d 13,5004. To Cash A/c 3,850 2. By Bills Payable A/c 13,5005. To Bills Payable A/c 10,000 3. By Interest A/c 350
27,350 27,350
Solution to Practice Q.16.: In the Books of Smita (Drawee)
Journal Entries
Date Particulars L.F. Debit `
Credit `
2010 Purchases A/c
To Ramesh’s A/c (Being goods purchased on credit)
Dr.
36,000
36,000Apr 1
Apr 1 Ramesh’s A/c To Bills Payable A/c
(Being bill accepted for 2 months)
Dr. 36,000 36,000
Jun 4 Bills Payable A/c Noting Charges A/c
To Ramesh’s A/c (Being bill dishonoured and noting charges payable)
Dr. Dr.
36,000 60
36,060
Jun 4 Ramesh’s A/c To Cash A/c
(Being part payment made)
Dr. 18,060 18,060
Jun 4 Interest A/c To Ramesh’s A/c
(Being interest payable on the balance amount)
Dr. 450 450
Jun 4 Ramesh’s A/c To Bills Payable A/c
(Being new bill accepted for 2 months)
Dr. 18,450 18,450
Jul 7 Bills Payable A/c To Cash A/c To Rebate A/c
(Being bill retired and rebate received)
Dr. 18,450 18,200
250
Total: 1,63,470 1,63,470
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Solution to Practice Q.17.: In the Books of Anjali (Drawer) Journal Entries
Date Particulars L.F. Debit `
Credit `
2011 Ravina’s A/c
To Sales A/c (Being goods sold on credit)
Dr.
5,000
5,000Apr 1
Apr 1 Cash A/c Discount A/c To Ravina’s A/c (Being part payment received and discount of 5% allowed)
Dr. Dr.
1,900 100
2,000
Apr 1 Bills Receivable A/c To Ravina’s A/c (Being bill drawn for the balance amount due)
Dr. 3,000 3,000
i. Jul 4 Cash A/c
To Bills Receivable A/c (Being bill honoured)
Dr. 3,000 3,000
ii. May 1 Cash / Bank A/c
Discount A/c To Bills Receivable A/c (Bieng bill discounted with bank)
Dr. Dr.
2,940 60
3,000
Aug 4 Ravina’s A/c To Bank A/c (Being discounted bill dishonoured)
Dr. 3,000 3,000
iii. Aug 4 Bills Sent for Collection A/c
To Bills Receivable A/c (Being bill sent for collection)
Dr. 3,000 3,000
Aug 4 Bank A/c Bank Charges A/c To Bill Sent for Collection A/c (Being amount collected by Bank and Charges debited)
Dr. Dr.
2,800 200
3,000
iv. Apr 1 Kantilal’s A/c
To Bills Receivable A/c (Being bill endorsed to Kantilal)
Dr. 3,000 3,000
Aug 4 Ravina’s A/c To Kantilal’s A/c (Being endorsed bill dishonoured)
Dr. 3,000 3,000
Aug 4 Cash / Bank A/c Bad debts A/c To Ravina’s A/c (Being Ravina became insolvent and only 20% amount recovered)
Dr. Dr.
600 2,400
3,000
Total: 34,000 34,000
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In the Books of Ravina (Drawee) Journal Entries
Date Particulars L.F. Debit `
Credit `
2011 Purchases A/c To Anjali’s A/c (Being goods purchased on credit)
Dr.
5,000
5,000Apr 1
Apr 1 Anjali’s A/c To Cash A/c To Discount A/c (Being part payment made and discount of 5% received)
Dr. 2,000 1,900
100
Apr 1 Anjali’s A/c To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 3,000 3,000
i. Jul 4 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 3,000 3,000
ii. Aug 4 Bills Payable A/c
To Anjali’s A/c (Being bill dishonoured)
Dr. 3,000 3,000
iii. Aug 4 Bills Payable A/c
To Cash A/c (Being bill honoured)
Dr. 3,000 3,0000
iv. Aug 4 Bills Payable A/c
To Anjali’s A/c (Being bill dishonoured)
Dr. 3,000 3,000
Aug 4 Anjali’s A/c To Cash / Bank A/c To Deficiency A/c (Being Ravina became insolvent and only 20% amount paid)
Dr. 3,000 600
2,400
Total: 25,000 25,000 Solution to Practice Q.18.: In the Books of Sunil (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Ramesh’s A/c
To Sales A/c (Being goods sold on credit)
Dr. 15,000 15,000
2. Bills Receivable A/c To Ramesh’s A/c (Being bill drawin for 2 months)
Dr. 15,000 15,000
3. Cash / Bank A/c Discount A/c To Bills Receivable A/c (Being bill discounted with the bank)
Dr. Dr.
14,875 125
15,000
4. Ramesh’s A/c To Bank A/c (Being discounted bill dishnoured)
Dr. 15,000 15,000
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5. Cash A/c To Ramesh’s A/c (Being part payment received)
Dr. 8,000 8,000
6. Ramesh’s A/c To Interest A/c (Being interest receivable)
Dr. 140 140
7. Bills Receivable A/c To Ramesh’s A/c (Being new bill drawn for the balance amount due along with interest)
Dr. 7,140 7,140
8. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)
Dr. 7,140 7,140
9. Ramesh’s A/c To Bill Sent for Collection A/c (Being bill dishnoured)
Dr. 7,140 7,140
10. Cash / Bank A/c Bad Debts A/c To Ramesh’s A/c (Being Ramesh declared insolvent and only 30% amount recovered)
Dr. Dr.
2,142 4,998
7,140
Total: 96,700 96,700 Solution to Practice Q.19.: In the Books of Sushant (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Rohan’s A/c (Being bill drawn for 2 months)
Dr. 10,000 10,000
2. Bill Sent for Collection A/c To Bills Receivable A/c (Being bill sent for collection)
Dr. 10,000 10,000
3. Rohan’s A/c To Bill Sent for Collection A/c (Being bill cancelled at the request of Rohan)
Dr. 10,000 10,000
4. Rohan’s A/c To Interest A/c (Being interest receivable)
Dr. 500 500
5. Cash A/c To Rohan’s A/c (Being part payment received along with interest)
Dr. 5,500 5,500
6. Bills Receivable A/c To Rohan’s A/c (Being new bill drawn on balance amount due)
Dr. 5,000 5,000
7. Rohan’s A/c To Bills Receivable A/c (Being bill dishonoured)
Dr. 5,000 5,000
8. Cash / Bank A/c Bad Debts A/c To Rohan’s A/c (Being Rohan became insolvent and only 40% amount recovered)
Dr. Dr.
2,000 3,000
5,000
Total: 51,000 51,000
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In the Books of Sushant (Drawer) Rohan’s Account
Dr. Cr.
Date Particulars J.F.Amount
` Date Particulars J.F.
Amount `
− To Balance b/d 10,000 1. By Bills Receivable A/c 10,0003. To Bill Sent for Collection A/c 10,000 5. By Cash A/c 5,5004. To Interest A/c 500 6. By Bills Receivable A/c 5,0007. To Bills Receivable A/c 5,000 8. By Cash / Bank A/c 2,000 8. By Bad Debts A/c 3,000
25,500 25,500
Solution to Practice Q.20.: In the Books of Manisha (Drawer)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Bills Receivable A/c
To Priti’s A/c (Being bill drawn for 4 months)
Dr. 9,000 9,000
2. Shital’s A/c To Bills Receivable A/c
(Being bill endorsed)
Dr. 9,000 9,000
3. Priti’s A/c To Shital’s A/c
(Being bill cancelled on request of Priti)
Dr. 9,000 9,000
4. Priti’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 120 120
5. Cash A/c To Priti’s A/c
(Being part payment received along with interest)
Dr. 3,120 3,120
6. Bills Receivable A/c To Priti’s A/c
(Being new bill drawn for 3 months)
Dr. 6,000 6,000
7. Priti’s A/c To Bills Receivable A/c
(Being new bill dishonoured due to insolvency)
Dr. 6,000 6,000
8. Cash/Bank A/c Dr. Bad Debts A/c Dr.
To Priti’s A/c (Being Priti declared insolvent and only 50% amount recovered)
3,000 3,000
6,000
Total: 48,240 48,240 Solution to Practice Q.21.: In the Books of Madhav (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Kashinath’s A/c
To Bills Payable A/c (Being bill drawn for 3 months)
Dr. 40,000 40,000
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2. Bills Payable A/c To Kashinath’s A/c
(Being bill cancelled on the request of Madhav)
Dr. 40,000 40,000
3. Interest A/c To Kashinath’s A/c
(Being interest payable on the balance amount)
Dr. 250 250
4. Kashinath’s A/c To Cash/Bank A/c
(Being part payment made along with interest)
Dr. 30,250 30,250
5. Kashinath’s A/c To Bills Payable A/c
(Being new bill accepted for 3 months)
Dr. 10,000 10,000
6. Bills Payable A/c To Kashinath’s A/c
(Being new bill dishonoured)
Dr. 10,000 10,000
7. Kashinath’s A/c To Cash/Bank A/c To Deficiency A/c
(Being Madhav declared insolvent and only 35% amount paid)
Dr. 10,000 3,500 6,500
Total: 1,40,500 1,40,500
In the Books of Kashinath (Drawer) Madhav’s Account
Dr. Cr.
Date Particulars J.F. Amount `
Date Particulars J.F. Amount `
– To Balance b/d 40,000 1. By Bills Receivable A/c 40,0002. To Bank A/c 40,000 4. By Cash/Bank A/c 30,2503. To Interest A/c 250 5. By Bills Receivable A/c 10,0006. To Bills Receivable A/c 10,000 7. By Cash/Bank A/c 3,500 7. By Bad Debts A/c 6,500
90,250 90,250
Solution to Practice Q.22.: In the Books of Narendra (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`1. Surendra’s A/c
To Bills Payable A/c (Being bill accepted for 3 months)
Dr. 8,000 8,000
2. Bills Payable A/c To Surendra’s A/c
(Being bill cancelled on the request of Narendra)
Dr. 8,000 8,000
3. Interest A/c To Surendra’s A/c
(Being interest payable on the balance amount)
Dr. 50 50
4. Surendra’s A/c To Cash A/c
(Being part payment made along with interest)
Dr. 6,050 6,050
5. Surendra’s A/c To Bills Payable A/c
(Being new bill accepted)
Dr. 2,000 2,000
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6. Bills Payable A/c To Surendra’s A/c
(Being new bill dishonoured)
Dr. 2,000 2,000
7. Surendra’s A/c Dr. To Cash A/c To Deficiency A/c
(Being Narendra declared insolvent and only 25% amount paid)
2,000 500
1,500
Total: 28,100 28,100 Solution to Practice Q.23.: In the Books of Dhamanekar (Drawee)
Journal Entries Date Particulars L.F. Debit
` Credit
`2008
Jun 01 Purchases A/c To Pednekar’s A/c
(Being goods purchased on credit)
Dr. 40,000 40,000
Jun 01 Pednekar’s A/c To Bills Payable A/c
(Being bill accepted for 3 months)
Dr. 40,000 40,000
Sep 04 Bills Payable A/c To Pednekar’s A/c
(Being bill dishonoured)
Dr. 40,000 40,000
Sep 04 Noting Charges A/c To Pednekar’s A/c
(Being noting charges paid)
Dr. 200 200
Sep 04 Interest A/c To Pednekar’s A/c
(Being interest payable on the balance amount)
Dr. 1,206 1,206
Sep 04 Pednekar’s A/c To Bills Payable’s A/c
(Being new bill accepted for 3 months)
Dr. 41,406 41,406
Dec 07 Bills Payable A/c To Pednekar’s A/c
(Being new bill dishonoured due to insolvency)
Dr. 41,406 41,406
Dec 07 Pednekar’s A/c Dr. To Cash A/c To Deficiency A/c
(Being Pednekar declared insolvent and only 1/3rd amount paid)
41,406 13,802 27,604
Total: 2,45,624 2,45,624 Solution to Practice Q.24.: In the Books of Avadhoot
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Nisha’s A/c To Nandini’s A/c
(Being endorsed bill dishonoured and noting charges paid)
Dr.
5,100
5,1001.
B. Dhanashri’s A/c
To Bills Receivable A/c (Being bill cancelled on the request of Dhanashri)
Dr.
2,400
2,4002.
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3. Cash A/c To Dhanashri’s A/c
(Being part payment received)
Dr. 1,200 1,200
4. Dhanashri’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 36 36
5. Bills Receivable A/c To Dhanashri’s A/c
(Being new bill drawn with interest)
Dr. 1,236 1,236
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
5,900
100
6,000
6.
D. Shashikala’s A/c
To Bank A/c (Being discounted bill dishonoured and noting charges paid by bank)
Dr.
4,070
4,0707.
E. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
6,000
6,0008.
Total: 26,042 26,042 Solution to Practice Q.25.: In the Books of Vivek
Journal Entries Date Particulars L.F. Debit
` Credit
`2010
Mahesh’s A/c
To Sameer’s A/c (Being endorsed bill dishonoured and noting charges paid)
Dr.
32,800
32,800
A. Jan 1
B. Subhash’s A/c
To Bills Receivable A/c (Being bill dishonoured)
Dr.
30,000
30,000Feb 1
Feb 1 Cash A/c To Subhash’s A/c
(Being part payment received)
Dr. 14,000 14,000
Feb 1 Subhash’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 400 400
Feb 1 Bills Receivable A/c To Subhash’s A/c
(Being new bill accepted for 3 months along with interest)
Dr. 16,400 16,400
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
11,600
400
12,000
Feb 5
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D. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
20,000
20,000Mar 1
Mar 1 Sohan’s A/c To Bill Sent for Collection A/c
(Being bill dishonoured)
Dr. 20,000 20,000
Total: 1,45,600 1,45,600 Solution to Practice Q.26.: In the Books of Ashwin
Journal Entries
Date Particulars L.F. Debit
` Credit
` A.
Bank A/c Bank Charges A/c
To Bill Sent for Collection A/c (Being bill sent for collection collected by bank and charges debited)
Dr. Dr.
5,700
50
5,750
1.
B. Nitin’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Nitin)
Dr.
7,200
7,2002.
3. Cash A/c To Nitin’s A/c
(Being part payment received)
Dr. 2,200 2,200
4. Nitin’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 100 100
5. Bills Receivable A/c To Nitin’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 5,100 5,100
C. Bills Payable A/c
To Bills Receivable A/c To Discount A/c
(Being our acceptance to Pravin discharged by endorsing Bhavin’s acceptance to us)
Dr.
4,250
4,000 250
6.
D. Cash/Bank A/c Bad Debts A/c
To Jatin’s A/c (Being Jatin became insolvent and only 40% amount recovered)
Dr. Dr.
3,400 5,100
8,500
7.
Total: 33,100 33,100
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Solution to Practice Q.27.: In the Books of Manoj Patil Journal Entries
Date Particulars L.F. Debit `
Credit `
2010 Vaishali’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Vaishali)
Dr.
22,400
22,400
A. Jan 1
Jan 1 Cash A/c To Vaishali’s A/c
(Being part payment received)
Dr. 12,000 12,000
Jan 1 Vaishali’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 312 312
Jan 1 Bills Receivable A/c To Vaishali’s A/c
(Being fresh bill accepted for 3 month along with interest)
Dr. 10,712 10,712
B. Feb 1 Cash A/c
Bad Debts A/c To Sadashiv’s A/c
(Being 45% amount received in full settlement)
Dr. Dr.
12,600 15,400
28,000
C. Cash A/c Rebate A/c
To Bill Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
11,940
60
12,000
Mar 1
D. Bharati’s A/c
To Bills Receivable A/c To Discount A/c
(Being bill endorsed and discount earned)
Dr.
6,000
5,750 250
Mar 31
Total: Solution to Practice Q.28.: In the Books of Motilal
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Jyoti’s A/c To Bhavna’s A/c
(Being bill dishonoured and noting charges paid)
Dr.
3,750
3,750
1.
B. Anil’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Anil)
Dr.
3,400
3,4002.
3. Cash A/c To Anil’s A/c
(Being part payment received)
Dr. 900 900
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4. Anil’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 50 50
5. Bills Receivable A/c To Anil’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 2,550 2,550
C. 6. Cash A/c
Rebate A/c To Bills Receivable A/c
(Being bill retired and rebate allowed)
Dr. Dr.
3,850 150
4,000
D. Arun’s A/c
To Bank A/c (Being discounted bill dishonoured and noting charges paid)
Dr.
7,100
7,100 7.
Total: 21,750 21,750 Solution to Practice Q.29.: In the Books of Ranbir
Journal Entries
Date Particulars L.F. Debit `
Credit `
A. Salman’s A/c
To Sonam’s A/c (Being endorsed bill dishonoured and noting charges paid by Sonam)
Dr.
3,280
3,2801.
B. Ravindra’s A/c
To Bills Receivable A/c (Being bill cancelled on the request of Ravindra)
Dr.
4,800
4,8002.
3. Cash A/c To Ravindra’s A/c
(Being part payment received in cash)
Dr. 1,800 1,800
4. Ravindra’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 60 60
5. Bills Receivable A/c To Ravindra’s A/c
(Being new bill drawn for 2 months along with interest)
Dr. 3,060 3,060
C. Cash/Bank A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
7,920
80
8,000
6.
D. Shirin’s A/c
To Bank A/c (Being discounted bill dishonoured and noting charges paid by bank)
Dr.
5,575
5,5757.
Total: 26,575 26,575
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Solution to Practice Q.30.: In the Books of Sharad Journal Entries
Date Particulars L.F. Debit `
Credit `
A. Vasant’s A/c
To Hemant’s A/c (Being endorsed bill dishonoured and noting charges paid)
Dr.
5,050
5,050i.
B. Pramod’s A/c
To Bills Receivable A/c (Being bill dishonoured)
Dr.
15,000
15,000ii.
iii. Pramod’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 250 250
iv. Cash A/c To Pramod’s A/c
(Being part payment received)
Dr. 5,000 5,000
v. Bills Receivable A/c To Pramod’s A/c
(Being new bill drawn for 3 months with interest)
Dr. 10,250 10,250
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being retired and rebate allowed)
Dr. Dr.
7,500
100
7,600
vi.
D. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
10,000
10,000vii.
viii. Amol’s A/c To Bill Sent for Collection A/c
(Being bill dishonoured)
Dr. 10,000 10,000
Total: 63,150 63,150 Solution to Practice Q.31.: In the Books of Nilesh
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Sanjay’s A/c To Naresh’s A/c
(Being bill dishonoured and noting charges paid)
Dr.
8,200
8,200i.
B. Sujit’s A/c
To Bills Receivable A/c (Being bill dishonoured)
Dr.
4,800
4,800ii.
iii. Cash A/c To Sujit’s A/c
(Being part payment received)
Dr. 1,600 1,600
iv. Sujit’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 96 96
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v. Bills Receivable A/c To Sujit’s A/c
(Being new bill drawn for 3 months)
Dr. 3,296 3,296
C. Cash A/c Rebate A/c
To Bills Payable A/c (Being bill retired and rebate allowed)
Dr. Dr.
23,760
240
24,000
vi.
D. Prashant’s A/c
To Bank A/c (Being bill dishonoured and noting charges paid by bank)
Dr.
8,160
8,160vii.
Total: 50,152 50,152 Solution to Practice Q.32.: In the Books of Kantilal
Journal Entries Date Particulars L.F.
Debit `
Credit `
A. Sawan’s A/c
To Sandhya’s A/c (Being bill dishonoured and noting charges paid)
Dr.
16,300
16,300i.
B. Nalini’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Nalini)
Dr.
6,000
6,000ii.
iii. Cash A/c To Nalini’s A/c
(Being part payment received)
Dr. 2,000 2,000
iv. Nalini’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 120 120
v. Bills Receivable A/c To Nalini’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 4,120 4,120
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
9,950
50
10,000
vi.
D. Meenakshi’s A/c
To Bill Sent for Collection A/c (Being bill dishonoured)
Dr.
8,000
8,000vii.
Total: 46,540 46,540
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Solution to Practice Q.33.: In the Books of Bhaskar Journal Entries
Date Particulars L.F. Debit `
Credit `
A. Nishad’s A/c
To Suresh’s A/c (Being bill dishonoured and noting charges paid)
Dr.
2,525
2,525i.
B. Rajesh’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Rajesh)
Dr.
7,500
7,500ii.
iii. Cash A/c To Rajesh’s A/c
(Being part payment received)
Dr. 2,500 2,500
iv. Rajesh’s A/c To Interest A/c
(Being interest receivable on balance amount)
Dr. 125 125
v. Bills Receivable A/c To Rajesh’s A/c
(Being new bill drawn for 3 months along with interest)
Dr. 5,125 5,125
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
3,750
50
3,800
vi.
D. Bill Sent for Collection A/c
To Bills Receivable A/c (Being bill sent to bank for collection)
Dr.
5,000
5,000vii.
viii. Dayaram’s A/c To Bill Sent for Collection A/c
(Being bill sent to bank for collection dishonoured by Dayaram)
Dr. 5,000 5,000
Total: 31,575 31,575 Solution to Practice Q.34.: In the Books of Kedarnath
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
Aloknath’s A/c To Badrinath’s A/c
(Being endorsed bill dishonoured and noting charges paid)
Dr.
16,500
16,500i.
B. Somnath’s A/c
To Bills Receivable A/c (Being bill cancelled on the request of Somnath)
Dr.
14,400
14,400ii.
iii. Cash A/c To Somnath’s A/c
(Being part payment received)
Dr. 4,400 4,400
iv. Somnath’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 200 200
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v. Bills Receivable A/c To Somnath’s A/c
(Being new bill drawn along with interest)
Dr. 10,200 10,200
C. Cash A/c Rebate A/c
To Bills Receivable A/c (Being bill retired and rebate allowed)
Dr. Dr.
10,250
250
10,500
vi.
D. Cash A/c Bad Debts A/c
To Ramnath’s A/c (Being Ramnath declared insolvent and only 50% amount recovered)
Dr. Dr.
6,250 6,250
12,500
vii.
Total: 68,700 68,700 Solution to Practice Q.35.: In the Books of Jwala
Journal Entries Date Particulars L.F. Debit
` Credit
`A.
John’s A/c To Abdul’s A/c
(Being endorsed bill dishonoured and noting charges paid)
Dr.
16,200
16,200i.
B. Sony’s A/c
To Bills Receivable A/c (Being bill cancelled on request of Sony)
Dr.
24,000
24,000ii.
iii. Sony’s A/c To Interest A/c
(Being interest receivable on the balance amount)
Dr. 300 300
iv. Cash A/c To Sony’s A/c
(Being part payment received along with interest)
Dr. 12,300 12,300
v. Bills Receivable A/c To Sony’s A/c
(Being new bill drawn for 3 months)
Dr. 12,000 12,000
C. Cash A/c Bad Debts A/c
To Trupti’s A/c (Being Trupti became insolvent and only 40% amount recovered)
Dr. Dr.
14,400 21,600
36,000
vi.
D. Rani’s A/c
To Bills Receivable A/c To Discount A/c
(Being bill endorsed in full settlement and discount received)
Dr.
6,300
6,000 300
vii.
Total: 1,07,100 1,07,100