NCERT Solution - Chapter 8 : Bill of Exchange ( Part -6 ) Class 11 Notes | EduRev

Class 11 : NCERT Solution - Chapter 8 : Bill of Exchange ( Part -6 ) Class 11 Notes | EduRev

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Q22 : Following was the position of debtor and creditor of Gautam as on 1.1.2011.

 

Debtors Rs

Creditors  Rs

Babu

5,000

-

Chanderkala

8,000

-

Kiran

13,500

-

Anita

14,000

-

Anju

-

5,000

Sheiba

-

12,000

Manju

-

6,000

 

The following transactions took place in the month of Jan 2011:

Jan. 02

Drew on Babu at two months after date at full settlement for Rs 4,800. Babu accepted the bill and returned it on 5.1.2011.

Jan. 04

Babu's bill discounted for Rs 4,750.

Jan. 08

Chanderkala sent a promissory note for Rs 8,000 payable three months after date.

Jan. 10

Promissory note received from Chanderkala discounted for Rs 7,900

Jan. 12

Accepted Sheiba draft for the amount due payable two months after date.

Jan. 22

Anita sent his promissory note payable after two months.

Jan. 23

Anita's promissory note endorsed in favour of Manju.

Jan. 25

Accepted Anju's draft payable after three months.

Jan. 29

 

Kiran sent Rs 2,000 in cash and a promissory note for the balance payable after three months. Record the above transactions in the proper subsidiary books.

 Answer :

Bills Receivable Book

No.

Date of Bill

2011

Date Received 

2006

From whom 

of Bill

Drawer 

whom 

received

Acceptor

Where

Term 

Payable

Due date 

2011

L.F.

Amount

Rs

Cash 

Book 

Folio

Remarks

01

Jan.02

Jan.05

Babu

Self

Babu

 

2 months

Mar.05

 

4,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

4,800

 

 

 

 

Bills Payable Book

No.

Date of Bill

2011

To Whom

Given

Drawer

Payee

Where 

payable

Term

Due date 

2011

Ledger

Amount

Rs

Date 

paid

Cash 

Book 

Folio

Remarks

01

Jan.12

Sheiba

Sheiba

-

 

2 months

Mar.15

 

12,000

 

 

 

02

Jan.25

Anju

Anju

-

 

2 months

Apr.28

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

17,000

 

 

 

 

Cash Book

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Date

Particulars

L.F.

Cash

 Rs

Bank 

Rs

2011

 

 

 

 

2011

 

 

 

 

Jan.04

Bills Receivable

 

 

4,750

 

 

 

 

 

Jan.10

Bills Receivable

 

 

7,900

 

 

 

 

 

Jan.29

Kiran

 

2,000

 

Jan.31

Balance c/d

 

2,000

12,650

 

 

 

 

 

 

 

 

 

 

 

 

 

2,000

12,650

 

 

 

2,000

12,650

 

 

 

 

 

 

 

 

 

 

 

There is difference between Bills of Exchange and Promissory Note. In case of Promissory Note, parties are makers and payees. However, in Bills of Exchange parties are Drawer, drawee (acceptor) and payee on account difference Promissory Note has not been recorded in Bills Receivable and Bills Payable book.

 

 

 Books of Gautam

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2011

 

 

 

 

 

 

Jan.05

Discount Allowed A/c

Dr.

 

200

 

 

 

To Babu

 

 

 

200

 

(Babu's acceptance received and allowed him

discount Rs 200)

 

 

 

 

 

 

 

 

 

 

Jan.04

Discount A/c

Dr.

 

50

 

 

 

To Bills Receivable A/c

 

 

 

50

 

(Babu's acceptance discounted with a discount

charge of Rs 50)

 

 

 

 

 

 

 

 

 

 

 

Jan.08

Bills Receivable A/c

Dr.

 

8,000

 

 

 

To Chanderkala

 

 

 

8,000

 

(Promissory Note from Chanderkala received)

 

 

 

 

 

 

 

 

 

 

Jan.10

Discount A/c

Dr.

 

100

 

 

 

To Bills Receivable A/c

 

 

 

100

 

(Chanderkala's Promissory Note discounted with bank

at discount of Rs 100)

 

 

 

 

 

 

 

 

 

 

Jan.22

Bills Receivable A/c

Dr.

 

14,000

 

 

 

To Anita

 

 

 

14,000

 

(Promissory Note received from Anita)

 

 

 

 

 

 

 

 

 

 

Jan.23

Manju

Dr.

 

14,000

 

 

 

To Bills Receivable A/c

 

 

 

14,000

 

(Anita's Promissory Note endorsed to Manju)

 

 

 

 

 

 

 

 

 

 

 

Jan.29

Bills Receivable A/c

Dr.

 

11,500

 

 

 

To Kiran

 

 

 

11,500

 

(Promissory Note from Kiran received)

     

 

Q23 : On Jan. 01, 2011 Harsh accepted a month bill for Rs 10,000 drawn on him by tanu for latter's benefit. Tanu discounted the bill on same day @ 8% p.a. On the due date tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance. Record the journal entries in the Books of Tanu and Harsh.

Answer :

Books of Tanu

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2011

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

10,000

 

 

 

To Harsh

 

 

 

10,000

 

(Harsh's acceptance received)

 

 

 

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

9,933

 

 

Discount A/c

 

 

67

 

 

 

To Bills Receivable A/c

 

 

 

10,000

 

(Harsh's acceptance discounted at 8% p.a.

for one month)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Harsha

Dr.

 

10,000

 

 

 

To Bank A/c

 

 

 

10,000

 

(Harsh's account settled by paying amount

 due to Harsh through cheque)

 

 

 

 

 

 

 

 

 

 

 

Books of Harsh

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2011

 

 

 

 

 

Jan.01

Tanu

Dr.

 

10,000

 

 

 

To Bills Payable A/c

 

 

 

10,000

 

(Bill drawn by Tanu accepted)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Bank A/c

Dr.

 

10,000

 

 

 

To Tanu

 

 

 

10,000

 

(Cheque received from Tanu)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Bills Payable A/c

Dr.

 

10,000

 

 

 

To Bank A/c

 

 

 

10,000

 

(Bill drawn by Tanu met on due date)

       

 

Q24 :

Ritesh and Naina were in need of funds temporarily. On August 01 2010 Ritesh drew upon Naina a bill for Rs 12,000 for 4 months. Naina accepted the bill and returned to Ritesh. Ritesh discounted the Bill @ 8% p.a. Half amount of the discounted bill remitted to Naina. On due date, Ritesh sent the required sum to Naina, who met the bill. Journalise the transaction in the books of both the parties.

Answer :

Books of Ritesh

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2010

 

 

 

 

 

Aug.01

Bills Receivable A/c

Dr.

 

12,000

 

 

 

To Naina

 

 

 

12,000

 

(Naina's acceptance received)

 

 

 

 

 

 

 

 

 

 

 

Aug.01

Bank A/c

Dr.

 

11,680

 

 

Discount A/c

Dr.

 

320

 

 

 

To Bills Receivable A/c

 

 

 

12,000

 

(Naina's acceptance discounted at 8% p.a.

with bank)

 

 

 

 

 

 

 

 

 

 

 

Aug.01

Naina

Dr.

 

6,000

 

 

 

To Cash A/c

 

 

 

5,840

 

 

To Discount A/c

 

 

 

160

 

(Bill discounted with bank for four months at 8% p.a.)

 

 

 

 

 

 

 

 

 

 

 

Dec.04

Naina

Dr.

 

6,000

 

 

 

To Cash A/c

 

 

 

6,000

 

(Balance amount paid to Naina, in order

 to met the bill)

 

 

 

 

 

 

 

 

 

 

 

 

Books of Naina

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2010

 

 

 

 

 

Aug.01

Ritesh

Dr.

 

12,000

 

 

 

To Bills Payable A/c

 

 

 

12,000

 

(Bill payable after four months accepted by Harish)

 

 

 

 

 

 

 

 

 

 

 

Aug.01

Cash A/c

Dr.

 

5,840

 

 

Discount A/c

Dr.

 

160

 

 

 

To Ritesh

 

 

 

6,000

 

(Half amount of the discounted bill received

 from Ritesh)

 

 

 

 

 

 

 

 

 

 

 

Dec.04

Cash A/c

Dr.

 

6,000

 

 

 

To Ritesh

 

 

 

6,000

 

(Balance amount received from Ritesh)

 

 

 

 

 

 

 

 

 

 

 

Dec.04

Bills Payable A/c

Dr.

 

12,000

 

 

 

To Bank A/c

 

 

 

12,000

 

(Bill paid on maturity)

       

 

Q25 : On Jan. 01, 2011, Bhanu and Naman drew on each other a bill for Rs 8,000 payable 3 months after the due date for their Mutual benefit. On January 02 they discounted with their bank each other’s bill at 5% p.a. on the due date each met his own acceptance. Give journal entry in the books of Bhanu and Naman.

Answer :

 

Books of Bhanu

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2011

 

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

8,000

 

 

 

To Naman

 

 

 

8,000

 

(Received Naman's acceptance for mutual help)

 

 

 

 

 

 

 

 

 

 

Jan.01

Naman

Dr.

 

8,000

 

 

 

To Bills Payable A/c

 

 

 

8,000

 

(Naman's acceptance accepted, payable

 after 3 months for mutual help)

 

 

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

7,900

 

 

Discount A/c

Dr.

 

100

 

 

 

To Bills Receivable A/c

 

 

 

8,000

 

(Naman's acceptance discounted at 5% p.a.

 with bank for three months)

 

 

 

 

 

 

 

 

 

 

Apr.04

Bills Payable A/c

Dr.

 

8,000

 

 

 

To Bank A/c

 

 

 

8,000

 

(Naman's acceptance cleared)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Books of Naman

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2011

 

 

 

 

 

Jan.01

Bills Receivable A/c

Dr.

 

8,000

 

 

 

To Bhanu

 

 

 

8,000

 

(Bhanu's acceptance received for mutual help)

 

 

 

 

 

 

 

 

 

 

Jan.01

Bhanu

Dr.

 

8,000

 

 

 

To Bills Payable A/c

 

 

 

8,000

 

(Bill drawn by Bhanu payable after 3 months

accepted for mutual help)

 

 

 

 

 

 

 

 

 

 

Jan.01

Bank A/c

Dr.

 

7,900

 

 

Discount A/c

Dr.

 

100

 

 

 

To Bills Receivable A/c

 

 

 

8,000

 

(Bhanu's acceptance discounted at 8%

p.a. for three months with bank)

 

 

 

 

 

 

 

 

 

 

Apr.04

Bills Payable A/c

Dr.

 

8,000

 

 

 

To Bank A/c

 

 

 

8,000

 

(Bill drawn by Bhanu discharged on due date)

       

 

Q26 :

On Nov. 01, 2010 Sonia drawn a bill on sunny for Rs 15,000 for 3 months for mutual accommodation. Sunny accepts the bill and return it to sonia. Sonia discounted the same with his bankers @ 6% p.a. The proceeds are shared between sonia and sunny in proportion of 2/3rd, 1/3rd respectively. On the due date sonia remits his proportion to sunny who fails to met the bill and as a result sonia has to meet it. Sunny Give a fresh acceptance for the amount due to sonia plus interest of Rs 100 sunny meet his second acceptance on due date. Record the necessary journal entries in the books of sonia and sunny.

Answer:

 

Books of Sonia

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2010

 

 

 

 

 

 

Nov.01

Bills Receivable A/c

Dr.

 

15,000

 

 

 

To Sunny

 

 

 

15,000

 

(Sunny's acceptance received)

 

 

 

 

 

 

 

 

 

 

 

Nov.01

Bank A/c

Dr.

 

14,775

 

 

Discount A/c

Dr.

 

225

 

 

 

To Bills Receivable A/c

 

 

 

15,000

 

(Bill discounted with banker at 6% p.a. for 3

months)

 

 

 

 

 

 

 

 

 

 

Nov.01

Sunny

Dr.

 

5,000

 

 

 

To Cash A/c

 

 

 

4,925

 

 

To Discount A/c

 

 

 

75

 

(1/3rd amount of discounted bill remitted to Sunny)

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

Feb.04

Sunny

Dr.

 

10,000

 

 

 

To Cash A/c

 

 

 

10,000

 

(Balance amount bill remitted to Sunny)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Sunny

Dr.

 

15,000

 

 

 

To Bank A/c

 

 

 

15,000

 

(Bill discounted with bank dishonoured)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Bank A/c

Dr.

 

15,000

 

 

 

To Cash A/c

 

 

 

15,000

 

(Cash paid to bank on account of dishonour of bill)

 

 

 

 

 

 

 

 

 

 

Feb.04

Sunny

Dr.

 

100

 

 

 

To Interest A/c

 

 

 

100

 

(Interest due from Sunny on account of dishounor of bill)

 

 

 

 

 

 

 

 

 

 

Feb.04

Bills Receivable A/c

Dr.

 

15,100

 

 

 

To Sunny

 

 

 

15,100

 

(Fresh acceptance received from Sunny)

 

 

 

 

 

 

 

 

 

 

 

 

Cash A/c

Dr.

 

15,100

 

 

 

To Bills Receivable A/c

 

 

 

15,100

 

(Cash received on due date)

 

 

 

 

 

 

 

 

 

 

 

 

Note: In the question, the maturity date of the second bill is not mentioned; so, the date of honouring the bill has not been shown.

 

Books of Sunny

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2010

 

 

 

 

 

 

Nov.01

Sonia

Dr.

 

15,000

 

 

 

To Bills Payable A/c

 

 

 

15,000

 

(Bill accepted payable after three months drawn by Sonia)

 

 

 

 

 

 

 

 

 

 

 

Nov.01

Cash A/c

Dr.

 

4,925

 

 

Discount A/c

Dr.

 

75

 

 

 

To Sonia A/c

 

 

 

5,000

 

(1/3rd amount of the discounted bill received from Sonia)

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

Feb.04

Cash A/c

Dr.

 

10,000

 

 

 

To Sonia

 

 

 

10,000

 

(Balance amount of bill due from Sonia received)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Bills Payable A/c

Dr.

 

15,000

 

 

 

To Sonia

 

 

 

15,000

 

(Bill drawn by Sonia dishonoured on due date)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Interest A/c

Dr.

 

100

 

 

 

To Sonia

 

 

 

100

 

(Interest due to Sonia)

 

 

 

 

 

 

 

 

 

 

 

Feb.04

Sonia

Dr.

 

15,100

 

 

 

To Bills Payable A/c

 

 

 

15,100

 

(The second bill accepted)

 

 

 

 

 

 

 

 

 

 

 

 

Bills Payable A/c

Dr.

 

15,100

 

 

 

To Cash A/c

 

 

 

15,100

 

(Sonia's acceptance met on due date)

       
               

 

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