The document Accounting for Bills of Exchange (Part - 6) Commerce Notes | EduRev is a part of the Commerce Course TS Grewal Solutions - Class 11 Accountancy.

All you need of Commerce at this link: Commerce

**Page No 16.38:**

**Question 31: ****On 1st May, 2019 Merchant & Co. sold goods to AB & Co. valued at â‚¹ 500 and drew upon them a bill at 3 months for the amount. AB & Co. accepted the draft on presentation. When the bill was about to mature. AB & Co. expressed their inability to meet it, and offered to pay Merchant & Co. â‚¹ 200 in cash and to accept a fresh bill for the balance plus interest at 6% p.a. for 3 months. Merchant & Co. agreed to the proposal and bill was renewed. On maturity, the bill was duly met.****Make the entries in the books of both the parties to record the above****transactions.****ANSWER:**

**Page No 16.39:**

**Question 32: A owed B â‚¹ 400. A accepted a Bill of Exchange at 3 months for this amount which B discounted for â‚¹ 380.****Give the necessary Journal entries in the books of A and B if this bill is:****(a) dishonoured on the due date;****(b) met at maturity and****(c) retired under rebate at 6% p.a. 2 months before its maturity.**

**ANSWER:**

Case (a) If the bill is dishonoured

Case (b) The bills met at maturity

Case (c) If bill is retired under rebate at 6% p.a. 2 months before its maturity**Working Note:**

**Page No 16.39:**

**Question 33: Amar sells goods to Bhola for â‚¹ 10,000 and draws upon him a bill for the amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bankers at a discount of â‚¹ 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his banker and his expenses amounting to â‚¹ 100. Bhola gives a fresh bill, 2 months' date to Amar for â‚¹ 10,250, which he met at maturity.****Show the necessary Journal entries in Amar's books.****ANSWER:**

**Page No 16.39:**

**Question 34: ****Give the Journal entries for the following:****(a) B's acceptance to us for â‚¹ 1,000 due this day, renewed at his request for 3 months with interest @ 6% p.a.****(b) Our bill to Chandra for â‚¹ 5,000 renewed for 2 months with interest @ 6% p.a.****(c) B's acceptance of â‚¹ 3,000 is discharged on his paying us cash â‚¹ 1,000 and accepting a fresh bill for the balance with interest â‚¹ 100.****ANSWER:**

(a)**Working Note:**

(b)**Working Note:**

(c)

**Page No 16.39:**

**Question 35: ****Leena sold goods to Meena on 1st March, 2009 for â‚¹ 68,000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by****Meena and Bank paid â‚¹ 55 as noting charges.****The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.****Journalise the above in the books of Leena and Meena.****ANSWER:**

**Page No 16.39:**

**Question 36: How will you record the following transactions in the books Kapadia?****(a) A bill received from Dalpat for â‚¹ 1,000 has to be renewed, Dalpat agrees to pay â‚¹ 20 as interest.****(b) Swamy's bill for â‚¹ 800 endorsed in favour of Ghosh dishonoured, Ghosh pays â‚¹ 10 as noting charges. Swamy pays â‚¹ 300 immediately and agrees to accept a new bill for 3 months for the balance together with interest at 6% p.a.****Ghosh's Account is settled by cheque.ANSWER:**

(a)

(b)

**Page No 16.39:**

**Question 37: ****Y purchased goods for â‚¹ 6,000 on 1st June, 2011 from X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonoured for non-payment and Z had to pay â‚¹ 50 as noting charges. Two days after the dishonour of bill, Y paid â‚¹ 2,000 to X and requested him to draw a second bill for the balance plus â‚¹ 90 for the amount of interest, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity.****Pass Journal entries for the above transactions in the books of X.****ANSWER:**

**Page No 16.40:**

**Question 38: ****On 1st January, 2008, A sold goods to B for â‚¹ 1,00,000 received â‚¹ 25,000 in cash and drew two bills, first â‚¹ 45,000 and second for â‚¹ 30,000 of two months each. Both bills were duly accepted by B. First bill was endorsed to C in settlement of his account of â‚¹ 45,000 and second bill was discounted from the bank at the rate of 12% p.a. On the due date of these bills, both bills were dishonoured, C has paid â‚¹ 100 and bank has paid â‚¹ 80 as noting charges.****Pass Journal entries in the books of A, B and C.**

**ANSWER:**

**Page No 16.40:**

**Question 39: ****Amar sells goods to Bhola for â‚¹ 10,000 plus CGST and SGST @ 9% each. He receives the GST amount in cash and draws upon Bhola a bill for the balance amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bank at a discount of â‚¹ 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his bank and his expenses amounting to â‚¹ 100. Bhola gives a fresh bill of 2 months' date to Amar for â‚¹ 10,250, which he meets at maturity. Show necessary Journal entries in Amar's books. ****ANSWER:**

Offer running on EduRev: __Apply code STAYHOME200__ to get INR 200 off on our premium plan EduRev Infinity!

### Rectification Of Errors - (Part - 1)

- Doc | 1 pages
### Rectification of Errors - (Part - 2)

- Doc | 2 pages
### Rectification of Errors - (Part - 3)

- Doc | 2 pages
### Rectification of Errors - (Part - 4)

- Doc | 2 pages
### Rectification of Errors - (Part - 5)

- Doc | 2 pages
### Rectification of Errors - (Part - 6)

- Doc | 2 pages

- Accounting for Bills of Exchange - (Part - 5)
- Doc | 2 pages
- Accounting for Bills of Exchange - (Part - 4)
- Doc | 2 pages
- Accounting for Bills of Exchange (Part - 3)
- Doc | 2 pages
- Accounting for Bills of Exchange (Part - 2)
- Doc | 2 pages