Class 11commerce T S GREWAL Solutions Accountancy Chapter 16  Accounting for Bills of Exchange
Accounting for Bills of Exchange Exercise 16.35
Solution PQ 1
Date of Bill 
Period 
Calculation 
Due Date 
i. 1^{st} December 2018 
60 Days 
30^{th} December 2018 + 30^{th} January 2018 + 3 days of grace 
2^{nd} February 2019 
ii. 30^{th} April 2019 
2 Months 
2 Months from 30^{th} April 2019 would be 30^{th} June 2019 + 3 days of grace 
3^{rd} July 2019 
iii. 28^{th} January 2019 
1 Month 
1 Month from 28^{th} January 2019 would be 28^{th} February 2019 + 3 days of grace

3^{rd} March 2019 
iv. 23^{rd} November 2018 
2 Months 
2 Months from 23^{rd} November 2018 would be 23^{rd} January 2019 + 3 days of grace 
26^{th} January 2019, but it is a national holiday so, due date would be one day before i.e.,25^{th} January 2019 
v. 29^{th} May 2018 
4 Months 
4 Months from 29^{th} May 2018 would be 29^{th} September 2018 + 3 days of grace 
02^{nd} October 2017 but it is a national holiday so, due date would be one day before i.e.,1^{st} October 2018. 
Solution PQ 2
Journal in the books of A (Drawer) 

Date 
Particulars 
L.F. 
Debit Amount (Rs.) 
Credit Amount (Rs.) 

2019 





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.) 

2019 





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.) 

2019 





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.) 

2019 





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
In the book of Vinod Journal 

Date 
Particulars 

L.F. 
Dr. Rs. 
Cr. Rs. 

Darbara Singh A/c 
Dr. 

1,000 

1/1/19 
To Sales A/c 



1,000 

(Being goods sold to Darbara Singh) 










1/1/19 
Bills Receivable A/c 
Dr. 

1,000 


To Darbara Singh A/c 



1,000 

(Being bills accepted by Darbara Singh) 




4/1/19 
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 

1/1/19 
To Vinod A/c 



1,000 

( Being goods bought from Vinod) 




1/1/19 
Vinod A/c 
Dr. 

1,000 


To Bills payable A/c 



1,000 

(Being bill drawn by Vinod accepted) 




3/4/19 
Bills Payable A/c 
Dr. 

1,000 


To Bank A/c 



1000 

(Being payment of bill was made on its due date ) 




Accounting for Bills of Exchange Exercise 16.36
Solution PQ 5
In the book of X Journal 

Date 
Particulars 

L.F. 
Dr. Rs. 
Cr. Rs. 
2019 





Jan.01 
Y's A/c 
Dr. 

20,000 


To Sales A/c 



20,000 

(Being goods sold on credit) 




Jan.01 
Bills Receivable A/c 
Dr. 

20,000 


To Y's A/c 



20,000 

(Being Y's acceptance was received) 




Jan.04 
Bank A/c 
Dr. 

19,400 


Discount Charges A/c (20,000×12%×3/12) 
Dr. 

600 


To Bills Receivable A/c 



20,000 

(Being Y's acceptance was discounted with bank) 




In the book of Y Journal 

Date 
Particulars 

L.F. 
Dr. Rs. 
Cr. Rs. 
2019 





Jan.01 
Purchases A/c 
Dr. 

20,000 


To X's A/c 



20,000 

(Being the goods purchased on credit) 




Jan.01 
X's A/c 
Dr. 

20,000 


To Bills Payable A/c 



20,000 

( Being bill accepted) 




Apr.04 
Bills Payable A/c 
Dr. 

20,000 


To Bank A/c 



20,000 

(Being X's acceptance discharged on its due date) 




Solution PQ 6
In the book of Dinesh Journal 

Date 
Particulars 

L.F. 
Dr. Rs. 
Cr. Rs. 
2018 





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. 
2018 





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. 
2019 





Mar.01 
B's A/c 
Dr. 

10,000 


To Sales A/c 



10,000 

(Being goods sold on credit) 




Mar.01 
Bills Receivable A/c 
Dr. 

10,000 


To B's A/c 



10,000 

(Being B's acceptance was received) 




Apr.04 
Bank A/c 
Dr. 

9,900 


Discount Charges A/c (10,000×6%×2/12) 
Dr. 

100 


To Bills Receivable A/c 



10,000 

(Being B's acceptance was discounted with bank) 




In the book of B Journal 

Date 
Particulars 

L.F. 
Dr. Rs. 
Cr. Rs. 
2018 





Mar.01 
Purchases A/c 
Dr. 

10,000 


To A's A/c 



10,000 

(Being the goods purchased on credit) 




Mar.01 
A's A/c 
Dr. 

10,000 


To Bills Payable A/c 



10,000 

( Being bill accepted) 




June.04 
Bills Payable A/c 
Dr. 

10,000 


To Bank A/c 



10,000 

(Being A's acceptance discharged on its due date) 




Solution PQ 8
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 9
In the book of A Journal 

Date 
Particulars 

L.F. 
Dr. Rs. 
Cr. Rs. 
2018 





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. 

2018 






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. 
2018 





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 10
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 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 


To Y's A/c 



4,000 

( Being Y's acceptance was received) 





Bank A/c 
Dr. 

3,900 


Discount Charges A/c 
Dr. 

100 


To Bills Receivable A/c 



4,000 

( Being Y's acceptance discounted with bank) 




Case c.
In the book of X Journal 

Date 
Particulars 