Class 11 Exam > Class 11 Questions > Q5. Manohar drew a bill of exchange on Pushka...
Start Learning for Free
Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee?
Most Upvoted Answer
Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20...
Journal Entries in the Books of Drawer:
1. On 13th March 2017, when the bill was drawn:
- Debit: Accounts Receivable/Pushkar (Rs. 20,000)
- Credit: Bills Receivable (Rs. 20,000)
2. On 1st April 2017, when the bill was endorsed to Yadu:
- Debit: Bills Receivable (Rs. 20,000)
- Credit: Accounts Receivable/Yadu (Rs. 20,000)
Journal Entries in the Books of Drawee/Acceptor:
1. On 13th March 2017, when the bill was accepted:
- Debit: Bills Payable (Rs. 20,000)
- Credit: Accounts Payable/Manohar (Rs. 20,000)
2. On the due date when the bill was dishonored:
- Debit: Accounts Payable/Manohar (Rs. 20,000)
- Credit: Bills Payable (Rs. 20,000)
- Debit: Noting Charges (Rs. 100)
- Credit: Accounts Payable/Manohar (Rs. 100)
Journal Entries in the Books of Endorsee:
1. On 1st April 2017, when the bill was endorsed to Yadu:
- Debit: Accounts Receivable/Manohar (Rs. 20,000)
- Credit: Bills Receivable (Rs. 20,000)
2. On 15th May 2017, when the bill was discounted with the bank:
- Debit: Bank (Discounted Amount)
- Debit: Bank Charges (if any)
- Credit: Bills Receivable (Rs. 20,000)
3. On the due date when the bill was dishonored:
- Debit: Accounts Receivable/Manohar (Rs. 20,000)
- Credit: Bills Receivable (Rs. 20,000)
- Debit: Noting Charges (Rs. 100)
- Credit: Accounts Receivable/Manohar (Rs. 100)
Explanation:
When Manohar drew a bill of exchange on Pushkar for Rs. 20,000 on 13th March 2017, it means that Pushkar became the acceptor of the bill and Manohar, the drawer. This bill was drawn for a period of 3 months, making the due date 13th June 2017.
Manohar endorsed the bill to Yadu on 1st April 2017 as a means to settle his debt with Yadu. This endorsement meant that the rights of the bill transferred from Manohar to Yadu. Yadu then discounted the bill with the bank on 15th May 2017 at a rate of 15% p.a. This means that Yadu received an amount less than the face value of the bill from the bank as per the discounted rate.
On the due date, 13th June 2017, the bill was dishonored which means that Pushkar failed to make the payment on the due date. Noting charges of Rs. 100 were incurred for recording the dishonor of the bill. These noting charges are borne by the party responsible for the dishonor, which in this case is
1. On 13th March 2017, when the bill was drawn:
- Debit: Accounts Receivable/Pushkar (Rs. 20,000)
- Credit: Bills Receivable (Rs. 20,000)
2. On 1st April 2017, when the bill was endorsed to Yadu:
- Debit: Bills Receivable (Rs. 20,000)
- Credit: Accounts Receivable/Yadu (Rs. 20,000)
Journal Entries in the Books of Drawee/Acceptor:
1. On 13th March 2017, when the bill was accepted:
- Debit: Bills Payable (Rs. 20,000)
- Credit: Accounts Payable/Manohar (Rs. 20,000)
2. On the due date when the bill was dishonored:
- Debit: Accounts Payable/Manohar (Rs. 20,000)
- Credit: Bills Payable (Rs. 20,000)
- Debit: Noting Charges (Rs. 100)
- Credit: Accounts Payable/Manohar (Rs. 100)
Journal Entries in the Books of Endorsee:
1. On 1st April 2017, when the bill was endorsed to Yadu:
- Debit: Accounts Receivable/Manohar (Rs. 20,000)
- Credit: Bills Receivable (Rs. 20,000)
2. On 15th May 2017, when the bill was discounted with the bank:
- Debit: Bank (Discounted Amount)
- Debit: Bank Charges (if any)
- Credit: Bills Receivable (Rs. 20,000)
3. On the due date when the bill was dishonored:
- Debit: Accounts Receivable/Manohar (Rs. 20,000)
- Credit: Bills Receivable (Rs. 20,000)
- Debit: Noting Charges (Rs. 100)
- Credit: Accounts Receivable/Manohar (Rs. 100)
Explanation:
When Manohar drew a bill of exchange on Pushkar for Rs. 20,000 on 13th March 2017, it means that Pushkar became the acceptor of the bill and Manohar, the drawer. This bill was drawn for a period of 3 months, making the due date 13th June 2017.
Manohar endorsed the bill to Yadu on 1st April 2017 as a means to settle his debt with Yadu. This endorsement meant that the rights of the bill transferred from Manohar to Yadu. Yadu then discounted the bill with the bank on 15th May 2017 at a rate of 15% p.a. This means that Yadu received an amount less than the face value of the bill from the bank as per the discounted rate.
On the due date, 13th June 2017, the bill was dishonored which means that Pushkar failed to make the payment on the due date. Noting charges of Rs. 100 were incurred for recording the dishonor of the bill. These noting charges are borne by the party responsible for the dishonor, which in this case is
Attention Class 11 Students!
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.
|
Explore Courses for Class 11 exam
|
|
Similar Class 11 Doubts
Top Courses for Class 11View all
Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee?
Question Description
Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee?.
Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee?.
Solutions for Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? in English & in Hindi are available as part of our courses for Class 11.
Download more important topics, notes, lectures and mock test series for Class 11 Exam by signing up for free.
Here you can find the meaning of Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? defined & explained in the simplest way possible. Besides giving the explanation of
Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee?, a detailed solution for Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? has been provided alongside types of Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? theory, EduRev gives you an
ample number of questions to practice Q5. Manohar drew a bill of exchange on Pushkar, his debtor, for Rs. 20,000 on 13 March, 2017 for 3 months. Pushkar accepted the same and returned it to the drawer. Manohar endorsed the bill to Yadu on 1" April, 2017 for a debt of equal amount. Yadu discounted it with the bank at 15% p.a. on 15 May 2017. On the due date the bill was dishonoured. (Noting charges amounted to Rs. 100) Show the journal entries in the books of: (a) Drawer (b) Drawee/ Acceptor (c) Endorsee? tests, examples and also practice Class 11 tests.
|
|
Explore Courses for Class 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup