Accounting for Bills Exchange - 2 | Accountancy Class 11 - Commerce PDF Download

 Page 1


 
 
 Q.22 A bill for ? 1,000 is drawn by A on B and accepted by the latter payable at the New Delhi, Bank of 
India. Show what entries should be passed in the books of A under each of the following circumstances: 
(a) If A retained the bill till the due date and then realized it on maturity. 
(b) If A discounted it with his bank for ? 950. 
(c) If A endorsed it to his creditor C in full settlement of his debt. 
(d) If A sent it to his bank for collection. 
Also, give the necessary entries in each of the cases if the bill is dishonoured. 
The solution can be presented as follows 
 
(a) 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 2


 
 
 Q.22 A bill for ? 1,000 is drawn by A on B and accepted by the latter payable at the New Delhi, Bank of 
India. Show what entries should be passed in the books of A under each of the following circumstances: 
(a) If A retained the bill till the due date and then realized it on maturity. 
(b) If A discounted it with his bank for ? 950. 
(c) If A endorsed it to his creditor C in full settlement of his debt. 
(d) If A sent it to his bank for collection. 
Also, give the necessary entries in each of the cases if the bill is dishonoured. 
The solution can be presented as follows 
 
(a) 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(b) 
 
 
 
                                                                                  
 
  
 
 
 
 
(c) 
 
 
 
  
 
 
 
 
 
 
Page 3


 
 
 Q.22 A bill for ? 1,000 is drawn by A on B and accepted by the latter payable at the New Delhi, Bank of 
India. Show what entries should be passed in the books of A under each of the following circumstances: 
(a) If A retained the bill till the due date and then realized it on maturity. 
(b) If A discounted it with his bank for ? 950. 
(c) If A endorsed it to his creditor C in full settlement of his debt. 
(d) If A sent it to his bank for collection. 
Also, give the necessary entries in each of the cases if the bill is dishonoured. 
The solution can be presented as follows 
 
(a) 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(b) 
 
 
 
                                                                                  
 
  
 
 
 
 
(c) 
 
 
 
  
 
 
 
 
 
 
 
 
 
(d) 
  
Q.23 On 1st January, 2019 for goods sold, Ramesh drew a Bill of Exchange on Mahesh for ? 4,000, for a 
period of 3 months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh who 
in turn endorses it to Suresh on 1st February, 2019. The bill is then discounted by Suresh on the same 
date with his bank at 5% p.a. On the due date the bill is dishonoured. 
Pass the necessary Journal entries in the books of all the four parties. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 4


 
 
 Q.22 A bill for ? 1,000 is drawn by A on B and accepted by the latter payable at the New Delhi, Bank of 
India. Show what entries should be passed in the books of A under each of the following circumstances: 
(a) If A retained the bill till the due date and then realized it on maturity. 
(b) If A discounted it with his bank for ? 950. 
(c) If A endorsed it to his creditor C in full settlement of his debt. 
(d) If A sent it to his bank for collection. 
Also, give the necessary entries in each of the cases if the bill is dishonoured. 
The solution can be presented as follows 
 
(a) 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(b) 
 
 
 
                                                                                  
 
  
 
 
 
 
(c) 
 
 
 
  
 
 
 
 
 
 
 
 
 
(d) 
  
Q.23 On 1st January, 2019 for goods sold, Ramesh drew a Bill of Exchange on Mahesh for ? 4,000, for a 
period of 3 months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh who 
in turn endorses it to Suresh on 1st February, 2019. The bill is then discounted by Suresh on the same 
date with his bank at 5% p.a. On the due date the bill is dishonoured. 
Pass the necessary Journal entries in the books of all the four parties. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
Page 5


 
 
 Q.22 A bill for ? 1,000 is drawn by A on B and accepted by the latter payable at the New Delhi, Bank of 
India. Show what entries should be passed in the books of A under each of the following circumstances: 
(a) If A retained the bill till the due date and then realized it on maturity. 
(b) If A discounted it with his bank for ? 950. 
(c) If A endorsed it to his creditor C in full settlement of his debt. 
(d) If A sent it to his bank for collection. 
Also, give the necessary entries in each of the cases if the bill is dishonoured. 
The solution can be presented as follows 
 
(a) 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(b) 
 
 
 
                                                                                  
 
  
 
 
 
 
(c) 
 
 
 
  
 
 
 
 
 
 
 
 
 
(d) 
  
Q.23 On 1st January, 2019 for goods sold, Ramesh drew a Bill of Exchange on Mahesh for ? 4,000, for a 
period of 3 months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh who 
in turn endorses it to Suresh on 1st February, 2019. The bill is then discounted by Suresh on the same 
date with his bank at 5% p.a. On the due date the bill is dishonoured. 
Pass the necessary Journal entries in the books of all the four parties. 
 
The solution can be presented as follows