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 

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
a.
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) 




b.
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) 




c.
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) 




d.
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:
1.
Amount of Discounting Charges =
2.
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 interestdue 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 nonpayment) 
Solution PQ 36
(a)
In the book of Kapadia Journal 

Date 
Particulars 
L.F. 
Dr. Rs. 
Cr. Rs. 

Dalpat A/c 
Dr 
1,000 

To Bills Receivable A/c 
1,000 

(Being Dalpat acceptance cancelled) 

Dalpat A/c 
Dr. 
20 

To Interest A/c 
20 

(Being interest due from Dalpat) 

Cash A/c 
Dr. 
20 

To Dalpat A/c 
20 

(Being cash received from Dalpat for interest on renewal of the bill) 

Bills Receivable A/c 
Dr. 
1,000 

To Dalpat A/c 
1,000 

(Being new bill accepted by Dalpat plus interest) 

(b)
In the book of Kapadia Journal 

Date 
Particulars 
L.F. 
Dr. Rs. 
Cr. Rs. 

Swamy A/c 
Dr. 
810 

To Ghosh A/c 
810 

(Being Swamy's acceptance dishonoured and Ghosh paid Rs.10 as noting charges) 

Cash A/c 
Dr. 
300 

To Swamy A/c 
300 

(Being cash received from Swamy) 

Swamy A/c 
Dr. 
7.65 

To Interest A/c (510×6%×3/12) 
7.65 

(Being interest due from Swamy) 

Bills Receivable A/c 
Dr. 
517.65 

To Swamy A/c 
517.65 

(Being Swamy's acceptance received for the balance due including interest) 

Ghosh A/c 
Dr. 
810 


To Bank A/c 



810 

(Being amount due to Ghosh was paid through cheque) 




Solution PQ 37
In the book of X Journal 

Date 
Particulars 
L.F. 
Dr. Rs. 
Cr. Rs. 

2011 

June 01 
Y's A/c 
Dr. 
6,000 

To Sales A/c 
6,000 

(Being goods sold to Y's) 

June 01 
Bills Receivable A/c (Bill No. 1) 
Dr. 
6,000 

To Y's A/c 
6,000 

(Being Y's acceptance received) 

June 04 
Z's A/c 
Dr. 
6,000 

To Bills Receivable A/c(Bill No. 1) 
6,000 

(Being bill endorsed in favour of Z's) 

Sept 04 
Y's A/c 
Dr. 
6,050 

To Z's A/c 
6,050 

(Being endorsed bill dishonoured and nothing charges paid) 

Sept 06 
Cash A/c 
Dr. 
2,000 


Bills Receivable A/c (4,050+90) (Bill No. 2) 
Dr. 

4,140 


To Y's A/c 



6,050 

To Interest A/c 



90 

(Being cash Rs.2,000 received and for the remaining balance new bill issued including interest of Rs.90) 




Nov 09 
Cash A/c 
Dr. 

4,140 


To Bills Receivable A/c(Bill No. 2) 



4,140 

(Being bill met on the due date) 




Accounting for Bills of Exchange Exercise 16.40
Solution PQ 38
In the book of A Journal 

Date 
Particulars 
L.F. 
Dr. Rs. 
Cr. Rs. 

2008 

Jan.01 
B's A/c 
Dr. 
1,00,000 

To Sales A/c 
1,00,000 

(Being goods sold to B) 

Jan 01 
Cash A/c 
Dr. 
25,000 

Bills Receivable A/c (Bill no.1) 
Dr. 
45,000 

Bills Receivable A/c (Bill no.2) 
Dr. 
30,000 

To B's A/c 
1,00,000 

(Being cash and acceptance were received from B's) 

Jan.01 
C's A/c 
Dr. 
45,000 

To Bills Receivable A/c ( Bill no.1) 
45,000 

(Being bill endorsed in favour of C) 

Jan. 01 
Bank A/c 
Dr. 
29,400 

Discount Charges A/c (30,000×12%×2/12) 
Dr. 
600 

To Bills Receivable (Bill No.2) 
30,000 

(Being bill no.2 discounted with bank at 12% p.a. for 2 months) 

Mar.04 
B's A/c 
Dr. 
45,100 


To C's A/c 



45,100 

(Being B's acceptance endorsed to C dishonoured and C paid Rs.100 as nothing charges) 




Mar.04 
B's A/c 
Dr. 

30,080 


To Bank A/c 



30,080 

(Being B's acceptance discounted with bank dishonoured and bank paid Rs.80 as nothing charges) 




Book of B Journal 

Date 
Particulars 
L.F. 
Dr. Rs. 
Cr. Rs. 

2008 

Jan. 01 
Purchase A/c 
Dr. 
1,00,000 

To A's A/c 
1,00,000 

(Being goods purchased from A's) 

Jan 01 
A's A/c 
Dr. 
1,00,000 

To Cash A/c 
25,000 

To Bills payable A/c (Bill no. 1) 
45,000 

To Bills payable A/c (Bill no.2) 
30,000 

(Being cash and bills given to A's) 

March 04 
Bills Payable A/c (Bill no.1) 
Dr. 
45,000 

Bills Payable A/c (Bill no.2) 
Dr. 
30,000 

Nothing Charges A/c 
Dr. 
180 

To A's A/c 
75,180 

(Being bills dishonoured ) 
Book of C Journal 

Date 
Particulars 
L.F. 
Dr. Rs. 
Cr. Rs. 

2008 

Jan. 01 
Bills Receivable A/c (Bill no.1) 
Dr 
45,000 

To A's A/c 
45,000 

(Being bill received from A's) 

March 04 
A's A/c 
Dr 
45,100 

To Bills Receivable A/c (Bill no.1) 
45,000 

To Cash A/c 
100 

(Being bill dishonoured on due date and noting charges paid) 

Solution PQ 39
Journal in the books of Amar (Drawer) 

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








Bhola'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 Bhola) 











Cash A/c 
Dr. 

1,800 


Bills Receivable A/c 
Dr. 

10,000 


To Bhola's A/c 



11,800 

(Cash and bill received) 











Bank A/c 
Dr. 

9,850 


Discounting Charges A/c 
Dr. 

150 


To Bills Receivable A/c 



10,000 

(Bill discounted) 











Bhola's A/c 
Dr. 

10,100 


To Bank A/c 



10,100 

(Bill dishonoured) 











Bhola's A/c 
Dr. 

150 


To Interest A/c 



150 

(Interest due) 











Bills Receivable A/c 
Dr. 

10,250 


To Bhola's A/c 



10,250 

(New bill received) 











Cash A/c 
Dr. 

10,250 


To Bills Receivable A/c 



10,250 

(New bill met on maturity) 










Journal in the books of Bhola (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 Amar's A/c 



11,800 

(Goods purchased from Amar) 











Amar's A/c 
Dr. 

11,800 


To Bills Payable A/c 
Dr. 


10,000 

To Cash A/c 



1,800 

(Cash paid and bill accepted) 











Bills Payable A/c 
Dr. 

10,000 


Noting Charges A/c 
Dr. 

100 


To Cash A/c 



10,100 

(Bill dishonoured) 











Interest A/c 
Dr. 

150 


To Amar's A/c 



150 

(Interest due) 











Amar's A/c 
Dr. 

10,250 


To Bills Payable A/c 



10,250 

(New bill accepted) 











Bills Payable A/c 
Dr. 

10,250 


To Cash A/c 



10,250 

(New bill met on maturity) 



