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

Page / Exercise

Chapter 16 - Accounting for Bills of Exchange Exercise 16.35

Question PQ 1

Q 1

Solution PQ 1

Date of Bill

Period

Calculation

Due Date

i. 1st December 2018

60 Days

30th December 2018 + 30th January 2018 + 3 days of grace

2nd February 2019

ii. 30th April 2019

2 Months

2 Months from 30th April 2019 would be 30th June 2019 + 3 days of grace

3rd July 2019

iii. 28th January 2019

1 Month

1 Month from 28th January 2019 would be 28th February 2019 + 3 days of grace

 

3rd March 2019

iv. 23rd November 2018

2 Months

2 Months from 23rd November 2018 would be 23rd January 2019 + 3 days of grace

26th January 2019, but it is a national holiday so, due date would be one day before i.e.,25th January 2019

v. 29th May 2018 

4 Months

4 Months from 29th May 2018 would be 29th September 2018 + 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 2018.

 

 

Question PQ 2

Q 2

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)

 

 

 

 

 

 

 

Question PQ 3

Q 3

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)

 

 

 

 

 

 

Question PQ 4

Q 4

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 )

 

 

 

 

 

 

Chapter 16 - Accounting for Bills of Exchange Exercise 16.36

Question PQ 5

Q 5

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)

 

 

 

 

 

 

 

Question PQ 6

Q 6

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)

 

 

 

 

 

 

Question PQ 7

Q 7

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)

 

 

 

 

 

 

 

Question PQ 8

Q 8

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)

 

 

 

 

 

 

Question PQ 9

Q 9

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)

 

 

 

 

 

 

Question PQ 10

Q 10

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)

 

 

 

 

 

 

Question PQ 11

Q 11

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)

 

 

 

 

 

 

Question PQ 12

Q 12

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)

 

 

 

 

 

 

 

 

 

 

 

 

Question PQ 13

Q 13

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)

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 16 - Accounting for Bills of Exchange Exercise 16.37

Question PQ 14

Q 14

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