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Accountancy Solution for Class 11 Commerce Accountancy Part I Chapter 8 - Bills of Exchange

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NCERT Textbook Solutions are considered extremely helpful when preparing for your CBSE Class 11 Accountancy part 1 exams. TopperLearning study resources infuse profound knowledge, and our Textbook Solutions compiled by our subject experts are no different. Here you will find all the answers to the NCERT textbook questions of Chapter 8 - Bills of Exchange.

All our solutions for Chapter 8 - Bills of Exchange are prepared considering the latest CBSE syllabus, and they are amended from time to time. Our free NCERT Textbook Solutions for CBSE Class 11 Accountancy part 1 will strengthen your fundamentals in this chapter and can help you to score more marks in the examination. Refer to our Textbook Solutions any time, while doing your homework or while preparing for the exam.

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Accountancy Solution for Class 11 Commerce Accountancy Part I Chapter 8 - Bills of Exchange Page/Excercise 323

Solution NUM 1

 

Book of Rao

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 01 

Reddy A/c

Dr. 

10,000 

  

  

----------To Sales A/c

10,000 

  

(Being goods sold to Reddy)

  

  

  

  

Jan 01 

Cash A/c

Dr. 

5,000 

  

  

----------To Reddy A/c

5,000 

  

(Being cash received from Reddy)

  

  

  

Jan 01 

Bills Receivable A/c

Dr. 

5,000 

  

  

----------To Reddy A/c

5,000 

  

(Being bill received and accepted from Reddy for 30 days)

  

  

  

Feb 03 

Cash A/c

Dr. 

5,000 

  

  

----------To Bills Receivable A/c

5,000 

(Being Reddy's acceptance met on due date)

  

  

  

  

 

Books of Reddy

Rao's Account 

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount 

Rs. 

Date 

Particulars 

J.F. 

Amount 

Rs. 

2015 

2015 

  

  

Jan 01 

To Cash A/c

  

5,000 

Jan01 

By Purchases A/c

  

10,000 

Jan 01 

To Bills Payable A/c

  

5,000 

 

 

 

 

  

  

  

  

  

  

  

  

 

 

 

10,000

10,000 

 

 

Solution NUM 2

Book of Parvati

Journal

Date 

 Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 01 

Shankar A/c

Dr. 

8,000 

  

  

----------To Sales A/c

8,000 

  

(Being goods sold to Shankar)

  

  

 

  

Jan 01 

Bills Receivable A/c

Dr. 

8,000 

  

  

----------To Shankar A/c

8,000 

  

(Being promissory note received from Shankar for three months)

  

  

 

  

Apr 05 

Cash A/c

Dr. 

8,000 

  

  

----------To Bills Receivable A/c

8,000 

  

(Being cash received for promissory note one day after the maturity date on account of holiday declared by govt.)

 

  

  

  

  

  

 

 

Book of Shankar

Journal

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 01 

Purchases A/c

Dr. 

8,000 

  

  

----------To Parvati A/c

8,000 

  

(Being goods purchased from Parvati)

  

  

 

  

Jan 01 

Parvati A/c

Dr. 

8,000 

  

  

----------To Bills Payable A/c

8,000 

  

(Being promissory note for three months sent to Parvati)

  

 

  

Apr 5

Bills Payable A/c

Dr.

8,000

----------To Cash A/c

8,000

(Being cash paid on maturity promissory note)

 

 

Solution NUM 3

Book of Vishal

Journal

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 05 

Manju A/c

Dr. 

7,000 

  

  

----------To Sales A/c

7,000 

  

(Being goods sold to Manju)

  

  

 

  

Jan 05 

Bills Receivable A/c

Dr. 

7,000 

  

  

----------To Manju A/c

7,000 

  

(Being bill received with Manju's acceptance for two months)

  

  

 

  

Jan 05 

Bank A/c

Dr. 

6,860 

  

  

Discount A/c

Dr. 

140 

7,000 

  

----------To Bills Receivable A/c

  

  

(Being bill receivable discounted with the bank @ 12 % p.a. for two months)

  

  

 

Note: On payment of the bill, no entry will be made.

 

 

Book of Manju

Journal

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 05 

Purchases A/c

Dr. 

7,000 

  

  

----------To Vishal A/c

7,000 

  

(Being goods purchased from Vishal)

  

  

 

  

Jan 05 

Vishal A/c

Dr. 

7,000 

  

  

----------To Bills Payable A/c

7,000 

  

(Being bill accepted drawn by Vishal)

  

 

 

 

 

 

 

Mar08

Bills Payable A/c

Dr.

7,000

  

----------To Bank A/c

7,000

(Being amount of bill payable paid to bank on maturity)

 

 

Solution NUM 4

 

Book of Jimmi

Journal

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Feb 01 

John A/c

Dr. 

15,000 

  

  

 ----------To Sales A/c

15,000 

  

(Being goods sold to John)

  

  

 

  

Feb 01 

Bank A/c

Dr. 

5,000 

  

  

 ----------To John A/c

5,000 

  

(Being cheque received for Rs.5,000 from John)

  

  

 

  

Feb 01 

Bills Receivable A/c

Dr. 

10,000 

  

  

 ----------To John A/c

10,000 

  

(Being bill received from John for 40 days)

  

  

  

 

  

Mar 11 

Bill Sent for Collection A/c

Dr. 

10,000 

  

  

 ----------To Bills Receivable A/c

  

10,000 

  

(Being John's acceptance sent to bank for collection)

  

  

 

  

Mar 16 

Bank A/c

Dr. 

10,000 

  

  

 ----------To Bill Sent for Collection A/c

10,000 

  

(Being John's acceptance met on due date and bank received the payment)

 

  

 

 

Ledger

John's Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Feb 01 

To Sales A/c

15,000

Feb 01

By Bank A/c

5,000

Feb 01

By Bills Receivable A/c

10,000

15,000

15,000

 

 

Book of John

Journal 

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Feb 01 

Purchases A/c

Dr. 

15,000 

  

  

 ----------To Jimmi A/c

15,000 

  

(Being goods purchases from Jimmi)

  

  

 

  

Feb 01 

Jimmi A/c

Dr. 

5,000 

  

  

----------To Bank A/c

5,000 

  

(Being cheque paid to Jimmi)

  

  

 

  

Feb 01 

Jimmi A/c

Dr. 

10,000 

  

  

 ----------To Bills Payable A/c

10,000 

  

(Being bill draw accepted for 40 days)

  

  

  

 

  

Mar 16 

Bills Payable A/c

Dr. 

10,000 

  

  

 ----------To Bank A/c

  

10,000 

  

(Being payment made on maturity of the bill to bank)

  

 

 

Ledger

Jimmi's Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Feb 01 

To Bank A/c

5,000

Feb 01

By Purchases A/c

15,000

Feb 01

To Bills Payable A/c

10,000

15,000

15,000

 

 

Accountancy Solution for Class 11 Commerce Accountancy Part I Chapter 8 - Bills of Exchange Page/Excercise 324

Solution NUM 5

 

Books of Kartar

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

 

  

  

Jan 15 

Bhagwan 

Dr. 

 

30,000 

  

  

----------To Sales A/c

 

 

30,000 

  

(Being goods sold to Bhagwan)

 

 

  

  

 

 

 

  

Jan 15 

Bills Receivable A/c

Dr. 

 

30,000 

  

  

----------To Bhagwan A/c

 

 

30,000 

  

(Being three bills of Rs.10,000 each, received from Bhagwan the first bill for one month, second bill for two months and third bill for three months)

 

 

 

  

  

 

 

  

Jan 15 

Ratna A/c

Dr. 

 

10,000 

  

  

 ----------To Bills Receivable A/c

 

 

10,000 

  

(Being the second bill endorsed to Ratna)

 

  

  

  

 

 

 

  

Jan 15 

Bank A/c

Dr. 

 

9,850 

  

  

Discount A/c

Dr. 

 

150 

  

  

----------To Bills Receivable A/c

 

 

10,000 

  

(Being bill discounted at 6% p.a.)

 

 

  

 

 

 

 

 

Feb 18 

Cash A/c

Dr. 

 

10,000 

  

  

----------To Bills Receivable A/c

 

 

10,000 

  

(Being the first bill met by Bhagwan, on due date)

 

 

  

 

 

Bhagwan's Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Jan 15 

To Sales A/c

30,000

Jan 15

By Bills Receivable A/c

30,000

30,000

30,000

 

 

Ratna's Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015

  

  

Jan 15 

To Bills Receivable A/c

10,000

Jan 31

 By Balance c/d

10,000

10,000

10,000

 

 

 

Bills Receivable Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Jan 15 

To Bhagwan A/c

30,000

Jan 15

By Ratna A/c

10,000

Jan 15

By Bank A/c

9,850

Jan 15

By Discount A/c

150

Jan 15

By Cash A/c

10,000

 

 

 

 

 

 

 

 

30,000

30,000

 

 

Cash Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Feb 18 

To Bills Receivable A/c

10,000

Feb 28

By Balance c/d

10,000

10,000

10,000

 

 

Bank's Account 

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Jan 15 

To Bills Receivable A/c

9,850

Jan 31

By Balance c/d

9,850

9,850

9,850

 

 

Books of Bhagwan

Journal Entries

Date 

Particulars 

 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

 

 

  

  

Jan 15 

Purchases A/c

Dr. 

 

30,000 

  

  To Kartar A/c

 

 

 

30,000 

(Being good purchased from Kartar on Cr.)

 

 

 

  

 

  

 

 

  

Jan 15 

Kartar A/c

Dr. 

 

30,000 

  

  To Bills Payable A/c

 

 

 

30,000 

(Being three bill Rs.10,000 each drawn by Kartar the first bill for one month, the second bill for two months and the third bill for three months, accepted and returned them to Kartar)

 

 

 

  

 

Feb 18 

Bills Payable A/c

Dr.

 

10,000

 To Cash A/c

10,000

(Being first was paid on due date)

Mar18

Bills Payable A/c

Dr.

 

10,000

 To Bank A/c

10,000

(Being second bill was paid on due to Ratna)

Apr 18

Bills Payable A/c

Dr.

 

10,000

 To Bank A/c

10,000

(Being third bill was paid on due to bank)

 

Kartar's Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Jan 15 

To Bills Payable A/c

30,000

Jan 15

By Purchases A/c

30,000

 

30,000

30,000

 

 

 

Bills Payable Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Feb 18 

To Cash A/c

10,000

Jan 15

By Kartar A/c

30,000

Mar 18

To Bank A/c

10,000

Apr 18

To Bank A/c

10,000

30,000

30,000

 

 

Cash Account

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Feb28 

To Balance c/d

10,000

Feb 18

By Bills Payable A/c

10,000

10,000

10,000

 

 

Bank Account 

Dr. 

Cr. 

Date 

Particulars 

J.F. 

Amount Rs. 

Date 

Particulars 

J.F. 

Amount Rs. 

2015 

  

2015 

  

  

Apr 31 

To Balance c/d 

20,000

Mar18

By Bills Payable A/c

10,000

Apr18

By Bills Payable A/c

10,000

20,000

20,000

 

Solution NUM 6

As per the provisions of Negotiable Instrument Act, when the maturity date of any bill falls on a public holiday then the maturity date of the bill will be the previous business day.

20 days after Jan 01, 2015 is 21st Jan, 2015. Adding 3 days of grace, we get the maturity date as 24th Jan, 2015. Previous business day is 23rd Jan, 2015.

 

 

Book of Arun

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 01 

Sunil A/c

Dr. 

30,000 

  

  

 ---------To Sales A/c

30,000 

  

(Being goods sold to Sunil)

  

  

 

  

Jan 01 

Cash A/c

Dr. 

14,700 

  

  

Discount Allowed A/c

Dr. 

300 

  

  

 ---------To Sunil A/c

15,000 

  

(Being half of the amount due from Sunil was received and allowed him 2% cash discount)

 

  

  

 

  

Jan 01 

Bills Receivable A/c

Dr. 

15,000 

  

  

---------To Sunil A/c

15,000 

  

(Being promissory note received for balance amount due from Sunil)

 

  

  

  

 

  

Jan 23 

Cash A/c

Dr. 

15,000 

  

  

---------To Bills Receivable A/c

15,000  

  

(Being cash received from Sunil one day before the maturity date due to public holiday)

 

  

 

 

 

Book of Sunil

Journal Entries

Date 

Particulars 

L.F. 

Dr.

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan01 

Purchases A/c

Dr. 

30,000 

  

  

---------To Arun A/c

30,000 

  

(Being goods purchased from Arun)

Jan 01

Arun A/c

Dr.

15,000

---------To Cash A/c

14,700

---------To Discount Received A/c

300

(Being half amount due to Arun paid by cheque and 2% discount allowed by him)

Jan 01

Arun A/c

Dr.

15,000

---------To Bills Payable A/c

15,000

(Being promissory note issued in favour of Arun for twenty days)

Jan 23

Bills Payable A/c

Dr.

15,000

---------To Cash A/c

15,000

(Being promissory note met one day before the maturity day)

 

 

Solution NUM 7

Case i: When the bill was retained by Darshan till the date of its maturity

 

Books of Darshan

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 08 

Varun A/c

Dr. 

40,000 

  

  

---------To Sales A/c

40,000 

  

(Being goods sold to Varun)

  

  

 

  

Jan 08 

Bills Receivable A/c

Dr. 

40,000 

  

  

 ---------To Varun A/c

40,000 

  

(Being Varun's acceptance received)

  

  

 

  

Mar 11 

Cash A/c

Dr. 

40,000 

  

  

 ---------To Bills Receivable A/c

40,000 

  

(Being bill met on due date)

  

  

  

Varun A/c

  

  

 

 

Book of Varun

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 08 

Purchases A/c

Dr. 

40,000 

  

  

---------To Darshan A/c

40,000 

  

(Being goods bought from Darshan)

  

  

 

  

Jan 08 

Darshan A/c

Dr. 

40,000 

  

  

  To Bills Payable A/c

40,000 

  

(Being bill of two months accepted for Darshan)

 

  

  

 

  

Mar 11 

Bills Payable A/c

Dr. 

40,000

 To Cash A/c

40,000

(Being Varun cleared his acceptance on the due date)

 

 

Case ii: When Darshan immediately discounted the bill @ 6% p.a. with his bank.

 

 

Book of Darshan

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 08 

Varun A/c

Dr. 

40,000 

  

  

 ---------To Sales A/c

40,000 

  

(Being goods sold to Varun)

  

  

 

  

Jan 08 

Bills Receivable A/c

Dr. 

40,000 

  

  

---------To Varun

40,000 

  

(Being B/R received from Varun for two months)

 

  

  

 

  

Jan08 

Bank A/c

Dr. 

39,600

Discount A/c

Dr.

400

---------To Bills Receivable A/c

40,000

(Being bill discounted with the bank @ 6 % p.a.)

 

 

 

Book of Varun

Journal Entries

Date 

Particulars 

L.F. 

Dr. 

Rs. 

Cr. 

Rs. 

2015 

  

  

  

Jan 08 

Purchases A/c

Dr. 

40,000 

  

  

---------To Darshan A/c

40,000 

  

(Being goods bought from Darshan)

  

  

 

  

Jan 08 

Darshan A/c

Dr. 

40,000 

  

  

 ---------To Bills Payable A/c