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

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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. 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.

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