Class 11-commerce T S GREWAL Solutions Accountancy Chapter 16: Accounting for Bills of Exchange

16.35

16.36

16.37

16.38

16.39

16.40

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		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)
	Z's A/c	Dr.		4,080
	------To Discount Received A/c				80
	------To Bills Receivable A/c				4,000
	(Being Y's acceptance endorsed in favour of and discount allowed by Z is Rs.80)

Case d.

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)
	Bills Sent for Collection A/c	Dr.		4,000
	------To Bills Receivable A/c				4,000
	(Being Y's acceptance sent to bank for collection)

	Bank A/c	Dr.		4,000
	------To Bills Sent for Collection A/c				4,000
	(Being Y's acceptance net on maturity)

Solution PQ 13

In the book of Ram Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2018
Sep.15	Bills Receivable A/c	Dr.		2,000
	------To Shyam A/c				2,000
	(Being Shyam's acceptance received)
Dec.18	Shyam A/c	Dr.		2,000
	------To Bills Receivable A/c				2,000
	(Shyam's acceptance dishonoured)

In the book of Shyam Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2018
Sep.15	Ram A/c	Dr.		2,000
	------To Bills Payable A/c				2,000
	(Being bill drawn by Ram was accepted)
Dec.18	Bills Payable A/c	Dr.		2,000
	------To Ram A/c				2,000
	(Being bills payable dishonoured)

Accounting for Bills of Exchange Exercise 16.37

Solution PQ 14

In the book of Naresh Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Mar.20	Kailash A/c	Dr.		1,250
	------To Sales A/c				1,250
	(Being goods sold to Kailash)
Mar.20	Bills Receivable A/c	Dr.		1,250
	------To Kailash A/c				1,250
	(Being Kailash's acceptance was received)

Jun.23	Kailash A/c	Dr.		1,260
	------To Bills Receivable A/c				1,250
	------To Cash A/c				10
	(Being bill received from Kailash dishonoured and Rs.10 paid for nothing the bill)

July.01	Cash A/c	Dr.		1,260
	To Kailash A/c				1260
	(Being received cash from Kailash)

In the book of Kailash Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Mar.20	Purchases A/c	Dr.		1,250
	------To Naresh A/c				1,250
	(Being goods were bought from Naresh)
Mar.20	Naresh A/c	Dr.		1,250
	------To Bills Payable A/c				1,250
	(Being bill drawn by Naresh was accepted)
Jun.23	Bills Payable A/c	Dr.		1,250
	Noting Charges A/c	Dr.		10
	------To Naresh A/c				1,260
	(Being bill payable was dishonoured)
July.01	Naresh A/c	Dr.		1,260
	------To Cash A/c				1,260
	(Being paid cash to Naresh)

Solution PQ 15

In the book of X Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Y's A/c	Dr.		25,000
	------To Sales A/c				25,000
	(Being goods sold to Y)
Jan.01	Bills Receivable A/c	Dr.		15,000
	Bank A/c	Dr.		10,000
	------To Y's A/c				25,000
	(Being Y's acceptance was received)

Apr.03	Y's A/c	Dr.		15,150
	------To Bills Receivable A/c				15,000
	------To Cash A/c				150
	(Being bill received from Y dishonoured and Rs.150 paid for nothing the bill)

Apr.13	Cash A/c	Dr.		15,150
	To Y's A/c				15,150
	(Being received cash from Y)

In the book of Y Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Purchases A/c	Dr.		25,000
	------To X's A/c				25,000
	(Being goods were bought from X)
Apr.03	X's A/c	Dr.		25,000
	To Bank A/c				10,000
	------To Bills Payable A/c				15,000
	(Being bill drawn by X was accepted)
Jan23	Bills Payable A/c	Dr.		15,000
	Noting Charges A/c	Dr.		150
	------To X's A/c				15,150
	(Being bill payable was dishonoured)
Apr.13	X's A/c	Dr.		15,150
	------To Cash A/c				15,150
	(Being paid cash to X)

Solution PQ 16

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jul.01	Bills Receivable A/c	Dr.		5,000
	------To B's A/c				5,000
	(Being B's acceptance was received)
Jul.01	Bank A/c	Dr.		4,850
	Discount Charges A/c	Dr.		150
	------To Bills Receivable A/c				5,000
	(Being B's acceptance discounted with bank)

Oct.04	B's A/c	Dr.		5,050
	------To Bank A/c				5,050
	(Being B's acceptance became dishonoured, bank paid noting charges of Rs.50)

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Ju.01	A's A/c	Dr.		5,000
	------To bills Payable A/c				5,000
	(Being bill drawn by A was accepted)
Oct.04	Bills Payable A/c	Dr.		5,000
	Nothing Charges A/c	Dr.		50
	------To A's A/c				5,050
	( Being bills payable dishonoured)

Solution PQ 17

In the book of Mohan Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
June 15	Sohan A/c	Dr.		2,000
	------To Sales A/c				2,000
	(Being goods sold to Sohan)
June 15	Bills Receivable A/c	Dr.		2,000
	------To Sohan A/c				2,000
	(Being Sohan's acceptance was received)
June 15	Bank A/c	Dr.		1,960
	Discount Charges A/c	Dr.		40
	------To Bills Receivable A/c				2,000
	(Being Sohan's acceptance discounted with bank)
Sep.18	Sohan A/c	Dr.		2,010
	------To Bank A/c				2,010
	(Being Sohan's acceptance become dishonoured and bank paid Rs.10 noting charges)
Sep.18	Bank A/c	Dr.		2,010
	------To Cash A/c				2,010
	(Being paid the amount due plus noting charges of Rs.10)

In the book of Sohan Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
June 15	Purchase A/c	Dr.		2,000
	------To Mohan A/c				2,000
	( Being goods were bought from Sohan)
June 15	Mohan A/c	Dr.		2,000
	------To Bills Payable A/c				2,000
	(Being bills drawn by Mohan was accepted)
Sep.18	Bills Payable A/c	Dr.		2,000
	Noting Charges A/c	Dr		10
	------To Mohan A/c				2,010
	(Being bills payable become dishonoured)

Solution PQ 18

In the book of R Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Mar.01	S's A/c	Dr.		20,000
	------To Bill Payable A/c				20,000
	(Being bill drawn by S's was accepted)
June 04	Bills Payable A/c	Dr.		20,000
	------To S's A/c				20,000
	(Being bills payable dishonoured)

In the book of T Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Mar.01	Bank A/c	Dr.		5,000
	Bills Receivable A/c	Dr.		20,000
	------To S's A/c				25,000
	(Being bills Receivable and cheque received from S)
Mar.02	Bank A/c	Dr.		19,700
	Discount Charges A/c	Dr.		300
	------To Bills Receivable A/c				20,000
	(Being R's acceptance discounted with bank at 6% p.a. for 3 month)
June04	S 's A/c	Dr.		20,000
	------To Bank A/c				20,000
	(Being bill received from S's was dishonoured)

Solution PQ 19

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Bills Receivable A/c	Dr.		10,000
	------To B A/c				10,000
	(Being B's acceptance was received)
Jan.11	C A/c	Dr.		10,000
	To Bills Receivable A/c				10,000
	(Being B's acceptance endorsed in favour of C)
April 04	B A/c	Dr.		10,050
	------To C A/c				10,050
	(Being bill endorsed in favour of C was dishonoured and C paid noting charges Rs.5)

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	A's A/c	Dr.		10,000
	------To Bills Payable A/c				1,000
	(Being bill drawn by A's was accepted)
April.04	Bill Payable A/c	Dr.		10,000
	Noting charges A/c	Dr.		500
	------To A's A/c				10,050
	(Being bill payable dishonoured )

In the book of C Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.11	Bills Receivable A/c	Dr.		10,000
	------To A's A/c				1,000
	(Being receivable received from A's)
April.04	A's A/c	Dr.		10,050
	------To Bills Receivable A/c				10,000
	------To Cash A/c				50
	(Being receivable received from A's become dishonoured and Noting Charge paid Rs.50)

Solution PQ 20

In the book of X Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Bills Receivable A/c	Dr.		3,900
	Discount Allowed A/c	Dr.		100
	------To Y's A/c				4,000
	(Being Y's acceptance received in full settlement of amount due from him and allowed with discount)
Jan.01	Z's A/c	Dr.		3,980
	------To Bills Receivable A/c				3,900
	------To Discount Received A/c				80
	( Being Y's acceptance endorsed in favour of Z's and discount received)
Mar.04	Y's A/c	Dr.		4,000
	Discount Received A/c	Dr.		80
	------To Z's A/c				3,980
	------To Discount Allowed A/c				100
	(Being Y's acceptance was endorsed to Z's, now dishonoured)

Solution PQ 21

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Bills Receivable A/c	Dr.		1,000
	------To B's A/c				1,000
	(Being B's acceptance was received)
Jan.01	Bills Sent for Collection A/c	Dr.		1,000
	------To Bills Receivable A/c				1,000
	(Being B's acceptance become dishonoured)
Apr. 04	B's A/c	Dr.		1,000
	------To Bills Sent for Collection A/c				1,000
	(Being B's acceptance become dishonoured)

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	A's A/c	Dr.		1,000
	------To Bills Payable A/c				1,000
	(Being drawn by A's was accepted)
April.04	Bills Payable A/c	Dr.		1,000
	------To A's A/c				1,000
	(Being payable to A's became dishonoured)

Solution PQ 22

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)

	On bill honoured
	Bank A/c	Dr.		1,000
	------To Bills Receivable A/c				1,000
	(Being B's acceptance honoured)
	On bill dishonoured
	B's A/c	Dr.		1,000
	------To Bills Receivable A/c				1,000
	(Being B's acceptance dishonoured)

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 bills receivable received from B's)

	Bank A/c	Dr.		950
	Discount Charges A/c	Dr.		50
	------To Bills Receivable A/c				1,000
	(Being bill acceptance discounted with bank)
	On bill dishonoured
	B's A/c	Dr.		1,000
	------To Bank A/c				1,000
	(B's accepatence dishonoured)

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)
	On bill dishonoured
	B's A/c	Dr.		1,000
	------To C's A/c				1,000
	(Being B's acceptance which had transferrd to C's now became dishonoured)

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)
	Bill Sent Bank for Collection A/c	Dr.		1,000
	------To Bills Receivable A/c				1,000
	(Being bill Sent to bank for collection)
	On bill dishonoured
	B's A/c	Dr.		1,000
	------To Bill Sent to Bank for Collection A/c				1,000
	( Being B's acceptance dishonoured)

Solution PQ 23

In the book of Ramesh Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Mahesh A/c	Dr.		4,000
	------To Sales A/c				4,000
	(Being were sold to Mehesh)
Jan.01	Bills Receivable A/c	Dr.		4,000
	------To Mahesh A/c				4,000
	( Being Mahesh's acceptance was received)
Jan.01	Mukesh A/c	Dr.		4,000
	------To Bills Receivable A/c				4,000
	(Being Mahesh' acceptance was endorsed in favour of Mukesh)
Apr.04	Mahesh A/c	Dr.		4,000
	------To Mukesh A/c				4,000
	(Being Mahesh's acceptance endorsed to Mukesh was dishonoured)

In the book of Mahesh Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Purchase A/c	Dr.		4,000
	------To Ramesh A/c				4,000
	(Being goods were bought from Ramesh)
Jan.01	Ramesh A/c	Dr.		4,000
	------To Bills Payable A/c				4,000
	(Being drawn by Ramesh was accepted)
April.04	Bills Payable A/c	Dr.		4,000
	------To Ramesh A/c				4,000
	(Being bill payable was dishonoured)

In the book of Mukesh Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan.01	Bill Receivable A/c	Dr.		4,000
	------To Ramesh A/c				4,000
	(Being bill received from Ramesh)
Feb.01	Suresh A/c	Dr.		4,000
	------To Bills Receivable A/c				4,000
	( Being bill which had received from Ramesh, endorsed to Suresh)

April.04	Ramesh A/c	Dr.		4,000
	------To Suresh A/c				4,000
	(Being received from Ramesh was dishonoured)

In the book of Suresh Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Feb.01	Bills Receivable A/c	Dr.		4,000
	------To Mukesh A/c				4,000
	(Being bill receivable received from Mukesh)
Feb.01	Bank A/c	Dr.		3,967
	Discount Charges A/c (4,000×5%×2/12)	Dr.		33
	------To Bills Receivable A/c				4,000
	(Being bill discount with bank at 5% p.a. for two month)
April.04	Mukesh A/c	Dr.		4,000
	------To Bank A/c				4,000
	(Being bill received from Mukesh was dishonoured)

Accounting for Bills of Exchange Exercise 16.38

Solution PQ 24

Book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Purchases A/c	Dr.		6,200
	------To B's A/c				6,200
	(Being goods purchased from B's)
	B's A/c	Dr.		6,200
	------To Bills Payable A/c				6,000
	------To Discount Received A/c				200
	(Being bill drawn by B's accepted and discount allowed by him)
	Bills Payable A/c	Dr.		6,000
	Discount Receivable A/c	Dr.		200
	Noting Charges A/c	Dr.		100
	------To B's A/c				6,300
	(Being bill payable dishonoured)

Book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	A's A/c	Dr.		6,200
	------To Sales A/c				6,200
	(Being goods sold to A's )
	Bills Receivable A/c	Dr.		6,000
	Discount Allowed A/c	Dr.		200
	------To A's A/c				6,200
	(Being B's acceptance received and disounted allowed)
	Purchases A/c	Dr.		10,000
	------To C's A/c				10,000
	(Being goods bought from C's)
	C's A/c	Dr.		10,000
	------To Bills Receivable A/c				6,000
	------To Bank A/c				4,000
	(Being bills receivable and cheque given to C's to settle due)
	A's A/c	Dr.		6,300
	------To C's A/c				6,100
	------To Discount Allowed A/c				200
	(Being bill accepted by B was dishonoured and C's paid Rs.100 as noting charges)

Book of C Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	B's A/c	Dr.		10,000
	------To Sales A/c				10,000
	(Being goods sold to B's)
	Bills Receivable A/c	Dr.		6,000
	Bank A/c	Dr.		4,000
	------To B's A/c				10,000
	(Being bill receivable and cheque received from B's)
	B's A/c	Dr.		6,100
	------To Bills Receivable A/c				6,000
	------To Cash A/c				100
	(Being bills receivable received from B dishonoured and Rs.100 paid for noting the bill)

Solution PQ 25

Book of X Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan. 01	Y's A/c	Dr.		40,000
	------To Sales A/c				40,000
	(Being goods was sold to Y's on credit)
Jan. 01	Bill Receivable A/c	Dr.		40,000
	------To Y A/c				40,000
	(Being Y's acceptance was received)
Jan. 04	Bank A/c	Dr.		39,400
	Discounting Charges A/c	Dr.		600
	------To Bills Receivable A/c				40,000
	(Being bill discounted at 6% p.a.)
Apr. 04	Y's A/c	Dr.		40,200
	------To Bank A/c				40,200
	(Being bill dishonoured and noting charges of Rs.200 paid by bank)
Apr. 04	Y's A/c	Dr.		1,206
	------To Interest A/c				1,206
	(Being interest due for three months from Y on renewal of bill)
Apr. 04	Bill Receivable (New) A/c (40,200 + 1,206)	Dr.		41,406
	------To Y A/c				41,406
	(Being acceptance received from Y's)

Working Notes:

Amount of Discounting Charges =

Amount of Interest on Renewal of Bill =

Solution PQ 26

In the book of Mohan Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan. 01	Bills Receivable A/c	Dr.		2,000
	------To Ram A/c				2,000
	(Being Ram's acceptance received)
Jan. 01	Bank A/c	Dr.		1,970
	Discount Charges A/c (2000×6%×3/12)	Dr.		30
	------To Bills Receivable A/c				2,000
	(Being Ram's acceptance was discounted at 6% p.a. for 3 months)
Apr. 04	Ram A/c	Dr.		2,020
	------To Bank A/c				2,020
	(Being Ram's acceptance discounted with bank dishonoured and noting paid)
Apr. 04	Cash A/c	Dr.		520
	------To Ram A/c				520
	(Being cash received from ram)
Apr. 04	Ram A/c	Dr.		34
	------To Interest A/c (1500×9%×3/12)				34
	(Being interest due from on remaining amount at 9% p.a. for 3 months)
Apr. 04	Bill Receivable A/c	Dr.		1,534
	------To Ram A/c				1,534
	(Being Ram's acceptance for remaining amount plus interest )
Apr. 04	Cash A/c	Dr.		1,534
	------To Bill Receivable A/c				1,534
	(Being cash received on honouring of bill)

In the book of Ram Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan. 01	Mohan A/c	Dr.		2,000
	------To Bills Payable A/c				2,000
	(Being bill drawn by Mohan was accepted)
Apr. 04	Bills Payable A/c	Dr.		2,000
	Nothing Charges A/c	Dr.		20
	------To Mohan A/c				2,020
	(Being bill dishonoured on its due date)
Apr. 04	Mohan A/c	Dr.		520
	------To Cash A/c				520
	(Being cash paid to Mohan)
Apr. 04	Interest A/c	Dr.		34
	------To Mohan A/c				34
	(Being interest due to mohan on outstanding balance for 3 months)
Apr. 04	Mohan A/c	Dr.		1,534
	------To Bills Payable A/c				1,534
	(Being bill accepted for the amount remaining plus interest to Mohan)
Apr. 04	Bills Payable A/c	Dr.		1,534
	------To Cash A/c				1,534
	(Being bill paid on maturity)

Solution PQ 27

In the books of X Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
June 15	Y's A/c	Dr		15,000
	------To Sales A/c				15,000
	(Being goods were sold to Y's)
June 15	Bills Receivable A/c (Bill no. 1)	Dr		10,000
	Bill Receivable A/c (Bill no. 2)	Dr		5,000
	------To Y's A/c				15,000
	(Being Y's acceptance was received)
June 15	Bank A/c	Dr		9,000
	Discount Charges A/c (10,000×6%×2/12)	Dr		1,00
	------To Bills Receivable A/c (Bill no.1)				10,000
	(Being bill issued for two months discounted at 6% p.a. for two months)
June 15	Z's A/c	Dr		5,000
	------To Bills Receivable A/c (Bill no. 2)				5,000
	(Being Y's acceptance bill no. 2 endorsed in favor of Z's)
Sep. 18	Y's A/c	Dr		5,050
	------To Z's A/c				5,050
	(Being Y's acceptance endorsed to Z's dishonoured and noting charges paid)
Oct. 01	Y's A/c	Dr		50
	------To Interest A/c				50
	(Being interest due from Y's)
	Cash A/c	Dr		5,100
	------To Y's A/c				5,100
	(Being amount due from Y's received)

In the books of Y Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
June 15	Purchase A/c	Dr.		15,000
	------To X's A/c				15,000
	(Being goods were bought from X's)
June 15	X's A/c	Dr.		15,000
	------To Bill Payable A/c (Bill no.1)				10,000
	------To Bill Payable A/c (Bill no.2)				5,000
	(Being bill drawn by X were accepted)
Aug. 18	Bills Payable A/c (Bill no.1)	Dr.		10,000
	------To Bank A/c				10,000
	(Being payment made for bill on maturity)
Sep. 18	Bills Payable A/c (Bill no. 2)	Dr.		5,000
	Nothing Charges A/c	Dr.		50
	------To X's A/c				5,050
	(Being bill dishonored)
Oct. 01	Interest A/c	Dr.		50
	------To X's A/c				50
	(Being interest due to X's)
Oct. 01	X's A/c	Dr		5,100
	------To Cash A/c				5,100
	(Being payment made to X's)

Solution PQ 28

In the book of X Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan. 01	Bills Receivable A/c	Dr.		2,000
	Discount Allowed A/c	Dr.		50
	------To Y's A/c				2,050
	( Being Y's acceptance was received and discount allowed)
Jan. 01	Bank A/c	Dr.		1,980
	Discount Charges A/c	Dr.		20
	------To Bills Receivable A/c				2,000
	(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	X's A/c	Dr.		2,050
	------To Bill Payable A/c				2,000
	------To Discount Received A/c				50
	(Being bill drawn by X's was accepted)
	Bills Payable A/c	Dr.		2,000
	------To Bank A/c				2,000
	(Being bill duly met on maturity)

In case the bill is dishonoured:

In the book of X Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan. 01	Bills Receivable A/c	Dr.		2,000
	Discount Allowed A/c	Dr.		50
	------To Y's A/c				2,050
	(Being Y's acceptance was received and discount allowed)
Jan. 01	Bank A/c	Dr.		1,980
	Discount Charges A/c	Dr.		20
	------To Bills Receivable A/c				2,000
	(Being Y's acceptance was discounted with bank)
	Y's A/c	Dr.		2,050
	------To Bank A/c				2,000
	------To Discount Allowed A/c				50
	(Being Y's acceptance became dishonoured)

In the book of Y Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
Jan. 01	X's A/c	Dr.		2,050
	------To Bills Payable A/c				2,000
	------To Discount Received A/c				50
	(Being bill drawn by X's was accepted and discount received)
	Bills Payable A/c	Dr.		2,000
	Discount Received A/c	Dr.		50
	------To X's A/c				2,050
	(Being became dishonoured)

Solution PQ 29

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
June 01	B's A/c	Dr.		250
	------To Sales A/c				250
	(Being goods were sold to B's)
June 01	Bills Receivable A/c	Dr.		250
	------To B's A/c				250
	(Being B's acceptance was received)
July 04	B's A/c	Dr.		250
	------To Bill Receivable A/c				250
	(B's acceptance was cancelled)
July 04	B's A/c	Dr.		10
	------To Interest A/c				10
	(Being interest due from B on cancelling the first bill)
July 04	Bills Receivable A/c	Dr.		260
	------To B's A/c				260
	(Being new bill including interest was accepted by B's)

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
June 01	Purchases A/c	Dr.		250
	------To A's A/c				250
	(Being goods were bought from A)
June 01	A's A/c	Dr.		250
	------To Bills Payable A/c				250
	(Being bills drawn by A's was accepted)
July 04	Bill Payable A/c	Dr.		250
	------To A's A/c				250
	(Being bill got cancelled)
July 04	Interest A/c	Dr.		10
	------To A's A/c				10
	(Being interest due to for cancelling the bill)
July 04	A's A/c	Dr.		260
	------To Bills Payable A/c				260
	(Being new bill including interest drawn by A's was accepted)

Solution PQ 30

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2018
Sep. 01	B's A/c	Dr.		16,000
	------To Sales A/c				16,000
	(Being goods were sold to B's)
Sep. 01	Bill Receivable A/c	Dr.		16,000
	------To B's A/c				16,000
	(Being B's acceptance was received)
Dec. 04	B's A/c	Dr.		16,000
	------To Bill Receivable A/c				16,000
	(Being B's acceptance was cancelled)
Dec. 04	B's A/c	Dr.		240
	------To Interest A/c (16000×9%×2/12)				240
	(Being interest due from at 9% for 2 month on the amount due)
Dec. 04	Cash A/c	Dr.		240
	------To Interest A/c				240
	(Being amount for interest were received from B's)
Dec. 04	Bills Receivable A/c	Dr.		16,000
	------To B's A/c				16,000
	(Being B's accepted a new bill)
2019
Feb. 07	Cash A/c	Dr.		16,000
	------To Bills Receivable A/c				16,000
	(Being payment received on honouring of the bill)

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2018
Sep. 01	Purchase A/c	Dr.		16,000
	------To A's A/c				16,000
	(Being goods were bought from A's)
Sep. 01	A's A/c	Dr.		16,000
	------To Bills Payable A/c				16,000
	(Being bills drawn by A's was accepted)
Dec. 04	Bill Payable A/c	Dr.		16,000
	------To A's A/c				16,000
	(Being bill cancelled due no payment)
Dec. 04	Interest A/c	Dr.		240
	------To A's A/c				240
	(Being interest due to A's at 9% p.a. for 2 months)
Dec. 04	A's A/c	Dr.		240
	------To Cash A/c				240
	(Being payment of interest to A's)
Dec. 04	A's A/c	Dr.		16,000
	------To Bill payable A/c				16,000
	(Being new bill drawn by A's was accepted)
2019
Feb. 07	Bills Payable A/c	Dr.		16,000
	------To Cash A/c				16,000
	(Being payment of the bill made on due date)

Solution PQ 31

In the book of Merchant and Co. Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
May 01	AB and Co. A/c	Dr.		500
	------To Sales A/c				500
	(Being goods were sold to AB and Co.)
May 01	Bills Receivable A/c	Dr.		500
	------To AB and Co. A/c				500
	(Being AB and Co. acceptance was received)
Aug. 04	AB and Co. A/c	Dr.		500
	------To Bills Receivable A/c				500
	(Being AB and Co. acceptance was cancelled)
Aug. 04	Cash A/c	Dr.		200
	------To AB and Co. A/c				200
	(Being cash received from AB and Co.)
Aug. 04	AB and Co. A/c	Dr.		4.50
	------To Interest A/c (300×6%×3/12)				4.50
	(Being interest-due from AB and Co. at 6% p.a.)
Aug. 04	Bills Receivable A/c	Dr.		304.50
	------To AB and Co. A/c				304.50
	(Being AB and Co. acceptance was received including the interest for 3 month)
Nov. 07	Cash A/c	Dr.		304.50
	------To Bills Receivable A/c				304.50
	(Being payment received on maturity the bill)

In the book of AB and Co Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2019
May.01	Purchases A/c	Dr.		500
	------To Merchant and Co. A/c				500
	(Being goods were bought from Merchant and Co)
May.01	Merchant and Co. A/c	Dr.		500
	------To Bills Payable A/c				500
	(Being bill drawn by Merchant and Co was accepted)
Aug.04	Bills Payable A/c	Dr.		500
	------To Merchant and Co. A/c				500
	(Being bill got cancelled)
Aug.04	Merchant and Co. A/c	Dr.		200
	------To Cash A/c				200
	(Being cash paid to Merchant and Co)
Aug.04	Interest A/c	Dr.		4.50
	------To Merchant and Co. A/c				4.50
	(Being interest due to Merchant and Co at 6% p.a. for 3 month on the amount due)
Aug.04	Merchant and Co	Dr.		304.50
	------To Bill Payable A/c				304.50
	(Being new bill drawn by Merchant and Co was accepted)
Nov.07	Bills Payable A/c	Dr.		304.50
	------To Cash A/c				304.50
	(Being cash paid for honouring the bill)

Accounting for Bills of Exchange Exercise 16.39

Solution PQ 32

Case a. If bill is dishonoured

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Bills Receivable A/c	Dr.		400
	------To A's A/c				400
	(Being A's acceptance was received)
	Bank A/c	Dr.		380
	Discount Charges A/c	Dr.		20
	------To Bills Receivable A/c				400
	(Being A's acceptance was discounted with bank)
	A's A/c	Dr.		400
	------To Bank A/c				400
	(Being A's acceptance dishonoured)

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	B's A/c	Dr.		400
	------To Bills Payable A/c				400
	(Being bill drawn by A's was accepted)
	Bills Payable A/c	Dr.		400
	------To B's A/c				400
	(Being bill drawn by B was dishonoured on maturity)

Case b. the bills met at maturity

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Bills Receivable A/c	Dr.		400
	------To A's A/c				400
	(Being A's acceptance was received)
	Bank A/c	Dr.		380
	Discount Charges A/c	Dr.		20
	------To Bills Receivable A/c				400
	(Being A's acceptance was discounted with bank)

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	B's A/c	Dr.		400
	------To Bills Payable A/c				400
	(Being bills drawn by A's was accepted)
	Bill Payable A/c	Dr.		400
	------To Cash A/c				400
	(Being payment made meeting the bill on maturity)

Case C. If bill is retired under rebate at 6% p.a. 2 month before its maturity

In the book of B Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Bill Receivable A/c	Dr.		400
	------To A's A/c				400
	(Being A's acceptance was receivaed)
	Cash A/c	Dr.		396
	Rebate A/c (400×6%×2/12)	Dr		4
	------To Bills Receivable A/c				400
	(Being payment received 2 month before its maturity and gave rebate)

In the book of A Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	B's A/c	Dr.		400
	------To Bills Payable A/c				400
	(Being bill drawn by B's was accepted)
	Bills Payable A/c	Dr.		400
	------To Cash A/c				396
	------To Rebate A/c				4
	(Being bill discharge before 2 month of its due date and rebate was received)

Solution PQ 33

In the book of Amar Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Bhola A/c	Dr.		10,000
	------To Sales A/c				10,000
	(Being goods were sold to Bhola)
	Bills Receivable A/c	Dr.		10,000
	------To Bhola A/c				10,000
	(Being Bhola's acceptance was received)
	Bank A/c	Dr.		9,850
	Discount Charges A/c	Dr.		150
	------To Bills Receivable A/c				10,000
	(Being Bhola's acceptance discounted with bank)
	Bhola A/c	Dr.		10,100
	------To Bank A/c				10,100
	(Being Bhola's acceptance declared dishonoured)
	Bank A/c	Dr.		10,100
	------To Cash A/c				10,100
	(Being payment made to bank with noting charges for dishonoring of the bill)
	Bhola A/c			150
	------To Interest A/c				150
	(Being interest due from Bhola for on account of bill dishonour)
	Bills Receivable A/c	Dr.		10,250
	------To Bhola A/c				10,250
	(Being new bill accepted by Bhola for the amount due including rating charges and interest)
	Cash A/c	Dr.		10,250
	------To Bills Receivable A/c				10,250
	(Being amount received)

Solution PQ 34

(a)

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	B's A/c	Dr.		1,000
	------To Bills Receivable A/c				1,000
	(Being B's acceptance was cancelled)
	B's A/c	Dr.		15
	------To Interest A/c (1000×6%×3/12)				15
	(Being interest due from B's)
	Bill Receivable A/c	Dr.		1,015
	------To B's A/c				1,015
	(Being new bill was accepted by B's including interest)

(b)

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Bill Payable A/c	Dr.		5,000
	------To C. Chandra A/c				5,000
	(Being bill Payable was cancelled)

	Interest A/c (5000×6%×2/12)	Dr.		50
	------To C. Chandra A/c				50
	(Being new bill drawn by C. Chandra was accepted)

	C. Chandra A/c	Dr.		5,050
	------To Bills Payable A/c				5,050
	(Being new bill drawn by C. Chandra was accepted)

(c)

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	B's A/c	Dr.		3,000
	------To Bills Receivable A/c				3,000
	(Being B's got cancelled his acceptance)

	Cash A/c	Dr.		1,000
	------To B's A/c				1,000
	(Being cash received from B)

	B's A/c	Dr.		100
	------To Interest A/c				100
	(Being interest due from B)
	Bills Receivable A/c	Dr.		2,100
	------To B's A/c				2,100
	(Being new bill accepted by B's for balance amount including interest)

Solution PQ 35

In the book of Leena Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2009
Mar.01	Meena A/c	Dr.		68,000
	------To Sales A/c				68,000
	(Being goods were sold to Meena)
Mar.01	Bill Receivable A/c (Bill no. 1)	Dr.		34,000
	Bill Receivable A/c (Bill no. 2)	Dr.		34,000
	------To Meena A/c				68,000
	(Being Meena's acceptance were received )
Mar.01	Bank A/c	Dr.		32,980
	Discount Charges A/c	Dr.		1,020
	------To Bills Receivable A/c (Bill no. 1)				34,000
	(Being bill no.1 discount with bank at 12% p.a. for 3 months)
May 04	Cash A/c	Dr.		33,830
	Rebat A/c (34000×6%×1/12)	Dr.		170
	------To Bill Receivable A/c (Bill no.2)				34,000
	(Being bill no.2 retired before one month under a rebate at 6% p.a.)
June 04	Meena A/c	Dr.		34,055
	------To Bank A/c				34,055
	(Being bill no.1 dishonoured and noting charges paid)

Book of Meena Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
2009
Mar.01	Purchase A/c	Dr.		68,000
	------To Leena A/c				68,000
	(Being goods were bought from Leena)
Mar.01	Leena A/c	Dr.		68,000
	------To Bills Payable A/c (Bill no.1)				34,000
	------To Bills Payable A/c (Bill no.2)				34,000
	(Being bill drawn by Leena were accepted)
Mar.04	Bill Payable A/c (Bill no.2)	Dr.		34,000
	------To Cash A/c				33,830
	------To Rebate A/c				170
	(Being bill no.2 paid one month before due date and rebate received)
June 04	Bills Payable A/c (Bill no.1)	Dr.		34,000
	Noting Charges A/c	Dr.		55
	------To Leena A/c				34,055
	(Being bill no.1 was dishonoured due to non-payment)

Solution PQ 36