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# T. S. Grewal Solution for Class 11 Commerce Accountancy Chapter 16 - Accounting for Bills of Exchange

Exercise/Page

## T. S. Grewal Solution for Class 11 Commerce Accountancy Chapter 16 - Accounting for Bills of Exchange Page/Excercise 16.34

Solution PQ 1

 Date of Bill Period Calculation Due Date i. 1st December 2017 60 Days 30th December 2017 + 30th January 2017 + 3 days of grace 2nd February 2018 ii. 30th April 2018 2 Months 2 Months from 30th April 2018 would be 30th June 2018 + 3 days of grace 3rd July 2018 iii. 28th January 2018 1 Month 1 Month from 28th January 2018 would be 28th February 2018 + 3 days of grace 3rd March 2018 iv. 23rd November 2017 2 Months 2 Months from 23rd November 2017 would be 23rd January 2018 + 3 days of grace 26th January 2018, but it is a national holiday so, due date would be one day before i.e.,25th January 2018 v. 29th May 2017 4 Months 4 Months from 29th May 2017 would be 29th September 2017 + 3 days of grace 02nd October 2017 but it is a national holiday so, due date would be one day before i.e.,1st October 2017

Note:

(i) As per this Question, point no. iii. Correct answer is Due Date of 3rd March 2018. While, according to the book is solution is 1st March 2018.

(ii) As per this Question, point no. ii. Correct answer is Due Date of 3rd July 2018. While, according to the book is solution is 3rd July 2017

Solution PQ 2

 Journal in the books of A (Drawer) Date Particulars L.F. Debit  Amount  (Rs.) Credit  Amount  (Rs.) 2018 Mar 10 Bills Receivable A/c Dr. 20,000 To B's A/c 20,000 (Bill drawn) June 13 Cash A/c Dr. 20,000 To Bills Receivable A/c 20,000 (Cash received against bill)

 Journal in the books of B (Drawee) Date Particulars L.F. Debit  Amount  (Rs.) Credit  Amount  (Rs.) 2018 Mar 10 A A/c Dr. 20,000 To Bills Payable A/c 20,000 (Bill accepted) June 13 Bills Payable A/c Dr. 20,000 To Cash A/c 20,000 (Cash paid against bill)

Solution PQ 3

 Journal in the books of A (Drawer) Date ParticulaRs. L.F. Debit  Amount  (Rs.) Credit  Amount  (Rs.) 2018 Jan 01 B's A/c Dr. 5,900 To Sales A/c 5,000 To Output IGST A/c 900 (Goods sold to B) Jan 01 Bank A/c Dr. 900 Bills Receivable A/c Dr. 5,000 To B's A/c 5,900 (Cheque and bill received) Apr 04 Cash A/c Dr. 5,000 To Bills Receivable A/c 5,000 (Cash received against bill)

 Journal in the books of B (Drawee) Date Particulars L.F. Debit  Amount  (Rs.) Credit  Amount  (Rs.) 2018 Jan 01 Purchases A/c Dr. 5,000 Input IGST A/c Dr. 900 To A's A/c 5,900 (Goods purchased from A) Jan 01 A's A/c Dr. 5,900 To Bank A/c Dr. 900 To Bills Payable A/c 5,000 (Cheque and bill sent) Apr 04 Bills Payable A/c Dr. 5,000 To Cash A/c 5,000 (Cash paid against bill)

Solution PQ 4

 Journal in the books of Manish (Drawer) Date Particulars L.F. Debit  Amount  (Rs.) Credit  Amount  (Rs.) Kumar's A/c Dr. 11,800 To Sales A/c 10,000 To Output CGST A/c 900 To Output SGST A/c 900 (Goods sold to Kumar) Cash A/c Dr. 1,800 Bills Receivable A/c Dr. 10,000 To Kumar's A/c 11,800 (Cash and bill received) Cash A/c Dr. 10,000 To Bills Receivable A/c 10,000 (Cash received against bill)

 Journal in the books of Kumar (Drawee) Date Particulars L.F. Debit  Amount  (Rs.) Credit  Amount  (Rs.) Purchases A/c Dr. 10,000 Input CGST A/c Dr. 900 Input SGST A/c Dr. 900 To Manish's A/c 11,800 (Goods purchased from Manish) Manish's A/c Dr. 11,800 To Cash A/c Dr. 1,800 To Bills Payable A/c 10,000 (Cash paid and bill accepted) Bills Payable A/c Dr. 10,000 To Cash A/c 10,000 (Cash paid against bill)

Solution PQ 5

 In the book of Vinod Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Darbara Singh A/c Dr. 1,000 ------To Sales A/c 1,000 (Being goods sold to Darbara Singh) Bills Receivable A/c Dr. 1,000 ------To Darbara Singh A/c 1,000 (Being bills accepted by Darbara Singh) Bank A/c Dr. 990 Discount Charges A/c Dr. 10 ------To Bills Receivable A/c 1,000 (Being Darabara Singh's acceptance discounted at 9% p.a. for 3 month)

 In the book of Darbara Singh Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Purchases A/c Dr. 1,000 ------To Vinod A/c 1,000 ( Being goods bought from Vinod) Vinod A/c Dr. 1,000 ------To Bills payable A/c 1,000 (Being bill drawn by Vinod accepted) Bills Payable A/c Dr. 1,000 ------To Bank A/c 1000 (Being payment of bill was made on its due date )

## T. S. Grewal Solution for Class 11 Commerce Accountancy Chapter 16 - Accounting for Bills of Exchange Page/Excercise 16.35

Solution PQ 6

 In the book of Dinesh Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2016 Sep.01 Bills Receivable A/c Dr. 3,000 ------To Shridhar A/c 3,000 (Being Shridhar's acceptance was received) Sep.01 Bank A/c Dr. 2,932 Discount Charges A/c (3,000×9%×3/12) Dr. 68 ------To Bills Receivable A/c 3,000 (Being Shridhar's acceptance was discounted with bank)

 In the book of Shridhar Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2016 Sep.01 Dinesh A/c Dr. 3,000 ------To Bills Payable A/c 3,000 ( Being bill drawn by Shridhar accepted) Dec.04 Bills Payable A/c Dr. 3,000 ------To Bank A/c 3,000 (Being Shridhar's acceptance discharged on its due date)

Solution PQ 7

 In the book of A Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Bills Receivable A/c Dr. 1,000 ------To B's A/c 1,000 (Being B's acceptance was received) C's A/c Dr. 1,000 ------To Bills Receivable A/c 1,000 (Being B's acceptance endorsed in favour of C's )

 In the book of B Journal Date Particulars L.F. Dr. Rs. Cr. Rs. A's A/c Dr. 1,000 ------To Bills Payable A/c 1,000 (Being bill drawn by A's was accepted) Bills Payable A/c Dr. 1,000 ------To Bills Receivable A/c 1,000 (Being amount owed from C's was settled by Bill Payable)

 In the book of C Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Bills Receivable A/c Dr. 1,000 ------To A's A/c 1,000 (Being bills receivable was received from A's) B's A/c Dr. 1,000 ------To Bills Receivable A/c 1,000 (Being amount owned to B's was settled by Bills Receivable)

Solution PQ 8

 In the book of A Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2017 Aug.01 B's A/c Dr. 8,000 ------To Bills Payable A/c 8,000 (Being drawn by B's was accepted) Dec.04 Bills Payable A/c Dr. 8,000 ------To Bank A/c 8,000 (Being payment made to meet the bill on its maturity)

 In the book of B Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2017 Aug.01 Bills Receivable A/c Dr. 8,000 ------To A's A/c 8,000 (Being A's acceptance was received) Aug.01 C's A/c Dr. 8,000 ------To Bills Receivable A/c 8,000 (Being A's acceptance endorsed in favour of C's)

 In the book of C Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2017 Aug.01 Bills Receivable A/c Dr. 8,000 ------To B's A/c 8,000 (Being bills receivable was received from B's) Sep.01 Bank A/c Dr. 7,760 Discount Charges A/c (8000×12%×3/12) Dr. 240 ------To Bills Receivable A/c 8,000 (Being bill discount at 12% p.a. for 3 month)

Solution PQ 9

 In the book of A Journals Date Particulars L.F. Dr. Rs. Cr. Rs. B's A/c Dr. 23,600 ------To Sales A/c 20,000 ------To Output CGST A/c 1,800 ------To Output SGST A/c 1,800 (Being goods sold plus CGST and SGST to B's) Bills Receivable A/c (Draft) Dr. 20,000 Bank A/c (Cheque) Dr. 3,600 ------To B's A/c 23,600 (Being B's accepted the bill with CGST and SGST) C's A/c Dr. 20,000 ------To Bills Receivable A/c (Draft) 20,000 (Being B's acceptance draft was endorsed in favour of C's)

Solution PQ 10

 In the book of A Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2017 July 10 B's A/c Dr. 41,300 ------To Sales A/c 35,000 ------To Output IGST A/c 6,300 (Being goods sold plus IGST to B's) July 10 Bills Receivable A/c Dr. 35,000 Bank A/c Dr. 6,300 ------To B's A/c 41,300 (Being B's acceptance was received) July 20 C's A/c Dr. 35,000 ------To Bills Receivable A/c 35,000 (Being B's bill acceptance endorsed in favour of C's)

 In the book of B Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2017 July 10 Purchases A/c Dr. 35,000 Input IGST A/c 6,300 ------To A's A/c 41,300 Being goods bought from A's plus IGST) July 10 A's A/c Dr. 41,300 ------To Bills payable A/c 35,000 ------To Bank A/c 6,300 (Being bill drawn by A's accepted) Oct 13 Bills payable A/c Dr. 35,000 ------To Cash A/c 35,000 (Being payment of bill was made on its due date)

 In the book of C Journal Date Particulars L.F. Dr. Rs. Cr. Rs. 2017 July20 Bills Receivable A/c Dr. 35,000 ------To A's A/c 35,000 ( Being bill Receivable received from A's) Oct13 Cash A/c Dr. 35,000 ------To Bills Receivable A/c 35,000 (Being amount of bill received on maturity)

Solution PQ 11

 In the book of Mohan Singh Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Bills Receivable A/c Dr. 1,000 ------To Jagat A/c 1,000 (Being Jagat acceptance was received) Bills Sent for Collection A/c Dr. 1,000 ------To Bills Receivable A/c 1,000 (Being bill receivable sent to bank for collection) Bank A/c Dr. 1,000 ------To Bills Sent for Collection A/c 1,000 (Being payment of bill received by bank)

 In the book of Jagat Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Mohan Singh A/c Dr. 1,000 ------To Bills Payable A/c 1,000 (Being bills drawn by Mohan Singh was accepted) Bills Payable A/c Dr. 1,000 ------To Bank A/c 1,000 (Being payment was made to meet the bill)

Solution PQ 12

Case a.

 In the book of X Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Bills Receivable A/c Dr. 4,000 ------To Y's A/c 4,000 (Being Y's acceptance was received) Cash A/c Dr. 4,000 ------To Bills Receivable A/c 4,000 (Being amount of bill receivable on its maturity)

Case b.

 In the book of X Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Bills Receivable A/c Dr. 4,000