Revision Test 13-14 - Bill of Exchange Class 11 Notes | EduRev

Class 11 : Revision Test 13-14 - Bill of Exchange Class 11 Notes | EduRev

 Page 1


 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 4 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 Min             SET – 1          MM ? 26 
 
Q 1: On 15.8.05 X draws a bill on Y for 3 months for Rs. 20, 000. 18
th
 Nov was a sudden holiday due date 
of the bill will be: 
1. 17
th
 Nov  2. 18
th
 Nov  3. 19
th
 Nov  4. 15
th
 Nov. 1 
 
Q 2: X draws a bill on Y for Rs. 20, 000 on 1.1.05 for 3 months after sight, date of acceptance is 6.1.05. 
Due date of the bill will be: 
1. 8.4.05  2. 9.04.05  3. 10.4.05  4. 11.4.05. 1 
 
Q 3: On 12
th
 February, 2010, X sold goods worth Rs. 6, 000 to Y. On 15
th
 February, 2010, X drew three 
bills of exchange worth Rs. 3, 000, Rs. 2, 000 and Rs. 1, 000 payable after three months, two months 
and one month respectively. Y accepted all the bills and returned them to X immediately. X 
discounted the first bill on 15
th
 March, 2010 @ 10% p.a. with his bank. He endorsed the second bill 
to Z on 20
th
 February, 2010. He retained the third bill till maturity. 
 Y met the third bill on the due date but dishonoured the first and the second bills. Noting charges 
amounting to Rs. 25 for each of these two bills were incurred. 
 Y was declared insolvent and could pay only 50 paise in the rupee on 30
th
 May, 2010 in full 
settlement. Pass the journal entries in the books of X and Y.    8 
 
Q 4: Aladin & Co. (our creditors) notified us the dishonour of P. Swami’s acceptance for Rs. 650 due this 
day, noting charges Rs. 12 being paid by them. We withdrew same in exchange of our cheque.       2 
 
Q 5: Parul sold goods to Sanjeev for Rs. 1, 50, 000 on 1
st
 April, 2003. On the same date, Parul drew 4 bills 
on Sanjeev for Rs. 25, 000, Rs. 20, 000, Rs. 35, 000 and Rs. 70, 000 for 1 month, 2 months, 3 months, 
and 4 months respectively. The bills were accepted by Sanjeev. The first bill was honoured on due 
date. Second bill was discounted with the bank by Parul @ 12% p.a. on 4
th
 May, 2003. Third bill was 
endorsed by Parul to Harishankar on 10
th
 May, 2003. Fourth bill was sent to bank for collection by 
Parul on 5
th
 June, 2003. The bill which was discounted with the bank was dishonoured on due date 
and bank paid Rs. 50 as noting charges. 
 The third and fourth bill were duly honoured. Pass the necessary journal entries in the books of 
Parul.           8  
 
Q 6: Journalise the following transactions in the books of G. Growver:  
A. Dutt’s Promissory Note for rs. 70, 000 which G. Grover had endorsed in favour of B. Mukherjee 
dishonoured. B. Mukherjee paid Rs. 1, 000 as noting charges. G. Grover pays B. Mukherjee by 
cheque and accepts from A. Dutt another bill for the amount due plus interest, Rs. 1, 500. 4 
 
Q 7: Distinguish between Trade bill and Accommodation bill.     2 
 
Page 2


 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 4 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 Min             SET – 1          MM ? 26 
 
Q 1: On 15.8.05 X draws a bill on Y for 3 months for Rs. 20, 000. 18
th
 Nov was a sudden holiday due date 
of the bill will be: 
1. 17
th
 Nov  2. 18
th
 Nov  3. 19
th
 Nov  4. 15
th
 Nov. 1 
 
Q 2: X draws a bill on Y for Rs. 20, 000 on 1.1.05 for 3 months after sight, date of acceptance is 6.1.05. 
Due date of the bill will be: 
1. 8.4.05  2. 9.04.05  3. 10.4.05  4. 11.4.05. 1 
 
Q 3: On 12
th
 February, 2010, X sold goods worth Rs. 6, 000 to Y. On 15
th
 February, 2010, X drew three 
bills of exchange worth Rs. 3, 000, Rs. 2, 000 and Rs. 1, 000 payable after three months, two months 
and one month respectively. Y accepted all the bills and returned them to X immediately. X 
discounted the first bill on 15
th
 March, 2010 @ 10% p.a. with his bank. He endorsed the second bill 
to Z on 20
th
 February, 2010. He retained the third bill till maturity. 
 Y met the third bill on the due date but dishonoured the first and the second bills. Noting charges 
amounting to Rs. 25 for each of these two bills were incurred. 
 Y was declared insolvent and could pay only 50 paise in the rupee on 30
th
 May, 2010 in full 
settlement. Pass the journal entries in the books of X and Y.    8 
 
Q 4: Aladin & Co. (our creditors) notified us the dishonour of P. Swami’s acceptance for Rs. 650 due this 
day, noting charges Rs. 12 being paid by them. We withdrew same in exchange of our cheque.       2 
 
Q 5: Parul sold goods to Sanjeev for Rs. 1, 50, 000 on 1
st
 April, 2003. On the same date, Parul drew 4 bills 
on Sanjeev for Rs. 25, 000, Rs. 20, 000, Rs. 35, 000 and Rs. 70, 000 for 1 month, 2 months, 3 months, 
and 4 months respectively. The bills were accepted by Sanjeev. The first bill was honoured on due 
date. Second bill was discounted with the bank by Parul @ 12% p.a. on 4
th
 May, 2003. Third bill was 
endorsed by Parul to Harishankar on 10
th
 May, 2003. Fourth bill was sent to bank for collection by 
Parul on 5
th
 June, 2003. The bill which was discounted with the bank was dishonoured on due date 
and bank paid Rs. 50 as noting charges. 
 The third and fourth bill were duly honoured. Pass the necessary journal entries in the books of 
Parul.           8  
 
Q 6: Journalise the following transactions in the books of G. Growver:  
A. Dutt’s Promissory Note for rs. 70, 000 which G. Grover had endorsed in favour of B. Mukherjee 
dishonoured. B. Mukherjee paid Rs. 1, 000 as noting charges. G. Grover pays B. Mukherjee by 
cheque and accepts from A. Dutt another bill for the amount due plus interest, Rs. 1, 500. 4 
 
Q 7: Distinguish between Trade bill and Accommodation bill.     2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 05 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 MIN          SET – 2            MM ? 26 
 
Q 1: On 16.06.05 X draws a bill on Y for Rs. 25, 000 for 30 days. 19
th
 July is a public holiday, due date of 
the bill will be: 
1. 19
th
 July  2. 18
th
 July  3. 17
th
 July  4. 16
th
 July. 1 
 
Q 2: On 18.2.05 A draw a bill on B for Rs. 10, 000. B accepted the bill on 21.2.05. The bill is drawn for 30 
days after sight. The due date of the bill will be: 
1. 24.3.05  2. 22.3.05  3. 26.3.05  4. 21.3.05 1 
 
Q 3: Mahesh drew a bill on Suresh on 7
th
 Jan., 2011 for Rs. 9, 000 payable after 3 months. After 
acceptance the bill was endorsed to Ramesh who discounted it with his bank on 10
th
 Jan. @ 8% p.a. 
On the due date, the bill was dishonoured and Rs. 100 were paid as noting charge. 
Mahesh paid off Ramesh’s dues in full and on Suresh’s request drew on him a new bill for 3 months 
adding interest Rs. 240 and noting charges. 
Before the due date, Suresh became insolvent and 50 paise in a rupee only could be realised from his 
estate. Pass Journal entries in the books of Mahesh and Suresh.    8  
 
Q 4: Our own acceptance to Dawood & Co. for Rs. 435 dishonoured this day (due to omission of necessary 
instructions to our bankers to pay). Received claim from Dawood & Co. for Rs. 450 including noting 
charges which we settled by cheque.       2  
 
Q 5: Namita sold goods to Monika for Rs. 25, 000 on 1
st
 January, 2003. On the same date, four bills were 
drawn on Monika and accepted by her for Rs. 4, 000, Rs. 5, 000, Rs. 6, 500 and Rs. 9, 500 for 2 
months, 3 months, 4 months and 5 months respectively. The bill for Rs. 4, 000 was sent by Namita to 
bank for collection on 15
th
 January, 2003, whereas the bill for Rs. 5, 000 was discounted with the 
bank @ 12% on 31
st
 January, 2003. As Namita owed Rs. 6, 500 to Neha so she endorsed the third bill 
in favour of Neha on 3
rd
 February, 2003. The fourth bill was retained by Namita till due date. The 
first and second bill were honoured on due date but the third bill was dishonoured. On due date of 
the fourth bill, Monika became insolvent and could only pay 50 paise in a rupee. Pass necessary 
journal entries in the books of Namita.       8 
 
Q 6: Journalise the following in the books of Harish. Harish sends Hari’s acceptance for Rs. 26, 000 to 
Baboo to meet his acceptance for the like amount in favour of Baboo. 
Shyam requests Mohan to renew his acceptance for rs. 15, 000 for 2 months. Mohan agrees to it 
provided interest is paid @ 10% in cash.       4 
 
Q 7: Distinguish between Bills of Exchange and Promissory Note.    2 
 
Page 3


 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 4 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 Min             SET – 1          MM ? 26 
 
Q 1: On 15.8.05 X draws a bill on Y for 3 months for Rs. 20, 000. 18
th
 Nov was a sudden holiday due date 
of the bill will be: 
1. 17
th
 Nov  2. 18
th
 Nov  3. 19
th
 Nov  4. 15
th
 Nov. 1 
 
Q 2: X draws a bill on Y for Rs. 20, 000 on 1.1.05 for 3 months after sight, date of acceptance is 6.1.05. 
Due date of the bill will be: 
1. 8.4.05  2. 9.04.05  3. 10.4.05  4. 11.4.05. 1 
 
Q 3: On 12
th
 February, 2010, X sold goods worth Rs. 6, 000 to Y. On 15
th
 February, 2010, X drew three 
bills of exchange worth Rs. 3, 000, Rs. 2, 000 and Rs. 1, 000 payable after three months, two months 
and one month respectively. Y accepted all the bills and returned them to X immediately. X 
discounted the first bill on 15
th
 March, 2010 @ 10% p.a. with his bank. He endorsed the second bill 
to Z on 20
th
 February, 2010. He retained the third bill till maturity. 
 Y met the third bill on the due date but dishonoured the first and the second bills. Noting charges 
amounting to Rs. 25 for each of these two bills were incurred. 
 Y was declared insolvent and could pay only 50 paise in the rupee on 30
th
 May, 2010 in full 
settlement. Pass the journal entries in the books of X and Y.    8 
 
Q 4: Aladin & Co. (our creditors) notified us the dishonour of P. Swami’s acceptance for Rs. 650 due this 
day, noting charges Rs. 12 being paid by them. We withdrew same in exchange of our cheque.       2 
 
Q 5: Parul sold goods to Sanjeev for Rs. 1, 50, 000 on 1
st
 April, 2003. On the same date, Parul drew 4 bills 
on Sanjeev for Rs. 25, 000, Rs. 20, 000, Rs. 35, 000 and Rs. 70, 000 for 1 month, 2 months, 3 months, 
and 4 months respectively. The bills were accepted by Sanjeev. The first bill was honoured on due 
date. Second bill was discounted with the bank by Parul @ 12% p.a. on 4
th
 May, 2003. Third bill was 
endorsed by Parul to Harishankar on 10
th
 May, 2003. Fourth bill was sent to bank for collection by 
Parul on 5
th
 June, 2003. The bill which was discounted with the bank was dishonoured on due date 
and bank paid Rs. 50 as noting charges. 
 The third and fourth bill were duly honoured. Pass the necessary journal entries in the books of 
Parul.           8  
 
Q 6: Journalise the following transactions in the books of G. Growver:  
A. Dutt’s Promissory Note for rs. 70, 000 which G. Grover had endorsed in favour of B. Mukherjee 
dishonoured. B. Mukherjee paid Rs. 1, 000 as noting charges. G. Grover pays B. Mukherjee by 
cheque and accepts from A. Dutt another bill for the amount due plus interest, Rs. 1, 500. 4 
 
Q 7: Distinguish between Trade bill and Accommodation bill.     2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 05 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 MIN          SET – 2            MM ? 26 
 
Q 1: On 16.06.05 X draws a bill on Y for Rs. 25, 000 for 30 days. 19
th
 July is a public holiday, due date of 
the bill will be: 
1. 19
th
 July  2. 18
th
 July  3. 17
th
 July  4. 16
th
 July. 1 
 
Q 2: On 18.2.05 A draw a bill on B for Rs. 10, 000. B accepted the bill on 21.2.05. The bill is drawn for 30 
days after sight. The due date of the bill will be: 
1. 24.3.05  2. 22.3.05  3. 26.3.05  4. 21.3.05 1 
 
Q 3: Mahesh drew a bill on Suresh on 7
th
 Jan., 2011 for Rs. 9, 000 payable after 3 months. After 
acceptance the bill was endorsed to Ramesh who discounted it with his bank on 10
th
 Jan. @ 8% p.a. 
On the due date, the bill was dishonoured and Rs. 100 were paid as noting charge. 
Mahesh paid off Ramesh’s dues in full and on Suresh’s request drew on him a new bill for 3 months 
adding interest Rs. 240 and noting charges. 
Before the due date, Suresh became insolvent and 50 paise in a rupee only could be realised from his 
estate. Pass Journal entries in the books of Mahesh and Suresh.    8  
 
Q 4: Our own acceptance to Dawood & Co. for Rs. 435 dishonoured this day (due to omission of necessary 
instructions to our bankers to pay). Received claim from Dawood & Co. for Rs. 450 including noting 
charges which we settled by cheque.       2  
 
Q 5: Namita sold goods to Monika for Rs. 25, 000 on 1
st
 January, 2003. On the same date, four bills were 
drawn on Monika and accepted by her for Rs. 4, 000, Rs. 5, 000, Rs. 6, 500 and Rs. 9, 500 for 2 
months, 3 months, 4 months and 5 months respectively. The bill for Rs. 4, 000 was sent by Namita to 
bank for collection on 15
th
 January, 2003, whereas the bill for Rs. 5, 000 was discounted with the 
bank @ 12% on 31
st
 January, 2003. As Namita owed Rs. 6, 500 to Neha so she endorsed the third bill 
in favour of Neha on 3
rd
 February, 2003. The fourth bill was retained by Namita till due date. The 
first and second bill were honoured on due date but the third bill was dishonoured. On due date of 
the fourth bill, Monika became insolvent and could only pay 50 paise in a rupee. Pass necessary 
journal entries in the books of Namita.       8 
 
Q 6: Journalise the following in the books of Harish. Harish sends Hari’s acceptance for Rs. 26, 000 to 
Baboo to meet his acceptance for the like amount in favour of Baboo. 
Shyam requests Mohan to renew his acceptance for rs. 15, 000 for 2 months. Mohan agrees to it 
provided interest is paid @ 10% in cash.       4 
 
Q 7: Distinguish between Bills of Exchange and Promissory Note.    2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
+1 ACC Test No – 4 BILLS OF EXCHANGE SOLUTION SET 1 (26
th
 JULY, 2013) 
 
Ans 1: 19
th
 Nov. 
 
Ans 2: 9 – 04 – 05. 
 
Ans 3:  
Date Particulars X Dr.  X Cr. Date Particulars X  Dr. X Cr. 
12.2.10 
 
 
15.2.10 
 
 
 
 
20.2.10 
 
 
15.3.10 
 
 
 
18.3.10 
 
 
18.4.10 
 
 
 
 
 
18.5.10 
 
 
 
 
 
30.5.10 
Y 
    To sales 
 
6, 000 
 
 
3, 000 
2, 000 
1, 000 
 
 
2, 000 
 
 
2, 950 
      50 
 
 
1, 000 
 
 
2, 000 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
2, 525 
2, 525 
 
6, 000 
 
 
 
 
6, 000 
 
 
2, 000 
 
 
 
3, 000 
 
 
1, 000 
 
 
2, 000 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
 
5, 050 
12.2.10 
 
 
15.2.10 
 
 
 
 
18.3.10 
 
 
18.4.10 
 
 
 
 
 
 
18.5.10 
 
 
 
 
 
30.5.10 
Purchase 
    To X 
6, 000 
 
 
6, 000 
 
 
 
 
1, 000 
 
 
2, 000 
 
 
 
      25 
 
 
3, 000 
 
 
     25 
 
 
5, 525 
 
6, 000 
 
 
3, 000 
2, 000 
1, 000 
 
 
1, 000 
 
 
2, 000 
 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
2, 525 
2, 525 
B/R1  
B/R2 
B/R3 
    To Y 
 
X  
    To B/P1 
    To B/P2 
    To B/P3 
Z 
    To B/R2 
 
B/P3 
    To Cash 
Bank 
Discount 
    To B/R1 
 
B/P2 
    To X 
Cash 
    To B/R3 
 
N/C 
    To X 
Y  
    To Z 
 
B/P1 
    To X 
Y  
    To Z 
 
N/C 
    To X 
Y  
    To Bank 
 
X 
    To Cash 
    To Deficiency 
Y 
    To Bank 
 
Cash 
Bad debts 
    To Y 
 
 
Ans 4:  
Particulars Dr. Rs. Cr. Rs. 
P. Swami Dr. 
    To Aladin 
 
650 
 
 
  12 
 
 
662 
 
650 
 
 
  12 
 
 
662 
P. Swami Dr. 
    To Aladin 
 
Aladin  Dr. 
    To bank 
Page 4


 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 4 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 Min             SET – 1          MM ? 26 
 
Q 1: On 15.8.05 X draws a bill on Y for 3 months for Rs. 20, 000. 18
th
 Nov was a sudden holiday due date 
of the bill will be: 
1. 17
th
 Nov  2. 18
th
 Nov  3. 19
th
 Nov  4. 15
th
 Nov. 1 
 
Q 2: X draws a bill on Y for Rs. 20, 000 on 1.1.05 for 3 months after sight, date of acceptance is 6.1.05. 
Due date of the bill will be: 
1. 8.4.05  2. 9.04.05  3. 10.4.05  4. 11.4.05. 1 
 
Q 3: On 12
th
 February, 2010, X sold goods worth Rs. 6, 000 to Y. On 15
th
 February, 2010, X drew three 
bills of exchange worth Rs. 3, 000, Rs. 2, 000 and Rs. 1, 000 payable after three months, two months 
and one month respectively. Y accepted all the bills and returned them to X immediately. X 
discounted the first bill on 15
th
 March, 2010 @ 10% p.a. with his bank. He endorsed the second bill 
to Z on 20
th
 February, 2010. He retained the third bill till maturity. 
 Y met the third bill on the due date but dishonoured the first and the second bills. Noting charges 
amounting to Rs. 25 for each of these two bills were incurred. 
 Y was declared insolvent and could pay only 50 paise in the rupee on 30
th
 May, 2010 in full 
settlement. Pass the journal entries in the books of X and Y.    8 
 
Q 4: Aladin & Co. (our creditors) notified us the dishonour of P. Swami’s acceptance for Rs. 650 due this 
day, noting charges Rs. 12 being paid by them. We withdrew same in exchange of our cheque.       2 
 
Q 5: Parul sold goods to Sanjeev for Rs. 1, 50, 000 on 1
st
 April, 2003. On the same date, Parul drew 4 bills 
on Sanjeev for Rs. 25, 000, Rs. 20, 000, Rs. 35, 000 and Rs. 70, 000 for 1 month, 2 months, 3 months, 
and 4 months respectively. The bills were accepted by Sanjeev. The first bill was honoured on due 
date. Second bill was discounted with the bank by Parul @ 12% p.a. on 4
th
 May, 2003. Third bill was 
endorsed by Parul to Harishankar on 10
th
 May, 2003. Fourth bill was sent to bank for collection by 
Parul on 5
th
 June, 2003. The bill which was discounted with the bank was dishonoured on due date 
and bank paid Rs. 50 as noting charges. 
 The third and fourth bill were duly honoured. Pass the necessary journal entries in the books of 
Parul.           8  
 
Q 6: Journalise the following transactions in the books of G. Growver:  
A. Dutt’s Promissory Note for rs. 70, 000 which G. Grover had endorsed in favour of B. Mukherjee 
dishonoured. B. Mukherjee paid Rs. 1, 000 as noting charges. G. Grover pays B. Mukherjee by 
cheque and accepts from A. Dutt another bill for the amount due plus interest, Rs. 1, 500. 4 
 
Q 7: Distinguish between Trade bill and Accommodation bill.     2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 05 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 MIN          SET – 2            MM ? 26 
 
Q 1: On 16.06.05 X draws a bill on Y for Rs. 25, 000 for 30 days. 19
th
 July is a public holiday, due date of 
the bill will be: 
1. 19
th
 July  2. 18
th
 July  3. 17
th
 July  4. 16
th
 July. 1 
 
Q 2: On 18.2.05 A draw a bill on B for Rs. 10, 000. B accepted the bill on 21.2.05. The bill is drawn for 30 
days after sight. The due date of the bill will be: 
1. 24.3.05  2. 22.3.05  3. 26.3.05  4. 21.3.05 1 
 
Q 3: Mahesh drew a bill on Suresh on 7
th
 Jan., 2011 for Rs. 9, 000 payable after 3 months. After 
acceptance the bill was endorsed to Ramesh who discounted it with his bank on 10
th
 Jan. @ 8% p.a. 
On the due date, the bill was dishonoured and Rs. 100 were paid as noting charge. 
Mahesh paid off Ramesh’s dues in full and on Suresh’s request drew on him a new bill for 3 months 
adding interest Rs. 240 and noting charges. 
Before the due date, Suresh became insolvent and 50 paise in a rupee only could be realised from his 
estate. Pass Journal entries in the books of Mahesh and Suresh.    8  
 
Q 4: Our own acceptance to Dawood & Co. for Rs. 435 dishonoured this day (due to omission of necessary 
instructions to our bankers to pay). Received claim from Dawood & Co. for Rs. 450 including noting 
charges which we settled by cheque.       2  
 
Q 5: Namita sold goods to Monika for Rs. 25, 000 on 1
st
 January, 2003. On the same date, four bills were 
drawn on Monika and accepted by her for Rs. 4, 000, Rs. 5, 000, Rs. 6, 500 and Rs. 9, 500 for 2 
months, 3 months, 4 months and 5 months respectively. The bill for Rs. 4, 000 was sent by Namita to 
bank for collection on 15
th
 January, 2003, whereas the bill for Rs. 5, 000 was discounted with the 
bank @ 12% on 31
st
 January, 2003. As Namita owed Rs. 6, 500 to Neha so she endorsed the third bill 
in favour of Neha on 3
rd
 February, 2003. The fourth bill was retained by Namita till due date. The 
first and second bill were honoured on due date but the third bill was dishonoured. On due date of 
the fourth bill, Monika became insolvent and could only pay 50 paise in a rupee. Pass necessary 
journal entries in the books of Namita.       8 
 
Q 6: Journalise the following in the books of Harish. Harish sends Hari’s acceptance for Rs. 26, 000 to 
Baboo to meet his acceptance for the like amount in favour of Baboo. 
Shyam requests Mohan to renew his acceptance for rs. 15, 000 for 2 months. Mohan agrees to it 
provided interest is paid @ 10% in cash.       4 
 
Q 7: Distinguish between Bills of Exchange and Promissory Note.    2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
+1 ACC Test No – 4 BILLS OF EXCHANGE SOLUTION SET 1 (26
th
 JULY, 2013) 
 
Ans 1: 19
th
 Nov. 
 
Ans 2: 9 – 04 – 05. 
 
Ans 3:  
Date Particulars X Dr.  X Cr. Date Particulars X  Dr. X Cr. 
12.2.10 
 
 
15.2.10 
 
 
 
 
20.2.10 
 
 
15.3.10 
 
 
 
18.3.10 
 
 
18.4.10 
 
 
 
 
 
18.5.10 
 
 
 
 
 
30.5.10 
Y 
    To sales 
 
6, 000 
 
 
3, 000 
2, 000 
1, 000 
 
 
2, 000 
 
 
2, 950 
      50 
 
 
1, 000 
 
 
2, 000 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
2, 525 
2, 525 
 
6, 000 
 
 
 
 
6, 000 
 
 
2, 000 
 
 
 
3, 000 
 
 
1, 000 
 
 
2, 000 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
 
5, 050 
12.2.10 
 
 
15.2.10 
 
 
 
 
18.3.10 
 
 
18.4.10 
 
 
 
 
 
 
18.5.10 
 
 
 
 
 
30.5.10 
Purchase 
    To X 
6, 000 
 
 
6, 000 
 
 
 
 
1, 000 
 
 
2, 000 
 
 
 
      25 
 
 
3, 000 
 
 
     25 
 
 
5, 525 
 
6, 000 
 
 
3, 000 
2, 000 
1, 000 
 
 
1, 000 
 
 
2, 000 
 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
2, 525 
2, 525 
B/R1  
B/R2 
B/R3 
    To Y 
 
X  
    To B/P1 
    To B/P2 
    To B/P3 
Z 
    To B/R2 
 
B/P3 
    To Cash 
Bank 
Discount 
    To B/R1 
 
B/P2 
    To X 
Cash 
    To B/R3 
 
N/C 
    To X 
Y  
    To Z 
 
B/P1 
    To X 
Y  
    To Z 
 
N/C 
    To X 
Y  
    To Bank 
 
X 
    To Cash 
    To Deficiency 
Y 
    To Bank 
 
Cash 
Bad debts 
    To Y 
 
 
Ans 4:  
Particulars Dr. Rs. Cr. Rs. 
P. Swami Dr. 
    To Aladin 
 
650 
 
 
  12 
 
 
662 
 
650 
 
 
  12 
 
 
662 
P. Swami Dr. 
    To Aladin 
 
Aladin  Dr. 
    To bank 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
Ans 5:      BOOKS OF PARUL 
Date Particulars Dr. Rs. Cr. Rs. 
1.4.03 
 
 
 
 
 
 
 
 
4.5.03 
 
 
4.5.03 
 
 
 
10.5.03 
 
 
4.6.03 
 
 
 
 
 
5.6.03 
 
 
4.8.3 
Sanjeev Dr. 
    To Sales 
 
1, 50, 000 
 
 
    25, 000 
    20, 000 
    35, 000 
    70, 000 
 
 
    25, 000 
 
 
    19, 800 
          200 
 
 
    35, 000 
 
 
    20, 000 
 
 
           50 
 
 
    70, 000 
 
 
    70, 000 
 
1, 50, 000 
 
 
 
 
 
1, 50, 000 
 
 
    25, 000 
 
 
 
    20, 000 
 
 
    35, 000 
 
 
    20, 000 
 
 
            50 
 
 
    70, 000 
 
 
    70, 000 
B/R1 Dr. 
B/R2 Dr. 
B/R3 Dr. 
B/R4 Dr. 
    To Sanjeev 
 
Cash Dr. 
    To B/R1 
 
Bank Dr. 
Discount Dr. 
    To B/R2 
 
Hari Dr. 
    To B/R3 
 
Sanjeev Dr. 
    To Bank 
 
Sanjeev Dr. 
    To Bank 
 
BSFC Dr. 
    To B/R4 
 
Bank Dr. 
    To BSFC 
 
 
Ans 6:      Journal of G. Grover 
Date Partiuclars LF Dr. Rs. Cr. Rs. 
 A. Dutt  Dr. 
To B. Mukherjee 
 71, 000 
 
71, 000 
 
  1, 500 
 
72, 500 
 
71, 000 
 
71, 000 
 
  1, 500 
 
72, 500 
B. Mukherjee Dr. 
To Bank A/c 
A. Dutt Dr. 
To Interest A/c 
Bils Receivable A/c Dr. 
To A. Dutt 
 
 
 
 
 
 
 
 
 
Page 5


 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 4 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 Min             SET – 1          MM ? 26 
 
Q 1: On 15.8.05 X draws a bill on Y for 3 months for Rs. 20, 000. 18
th
 Nov was a sudden holiday due date 
of the bill will be: 
1. 17
th
 Nov  2. 18
th
 Nov  3. 19
th
 Nov  4. 15
th
 Nov. 1 
 
Q 2: X draws a bill on Y for Rs. 20, 000 on 1.1.05 for 3 months after sight, date of acceptance is 6.1.05. 
Due date of the bill will be: 
1. 8.4.05  2. 9.04.05  3. 10.4.05  4. 11.4.05. 1 
 
Q 3: On 12
th
 February, 2010, X sold goods worth Rs. 6, 000 to Y. On 15
th
 February, 2010, X drew three 
bills of exchange worth Rs. 3, 000, Rs. 2, 000 and Rs. 1, 000 payable after three months, two months 
and one month respectively. Y accepted all the bills and returned them to X immediately. X 
discounted the first bill on 15
th
 March, 2010 @ 10% p.a. with his bank. He endorsed the second bill 
to Z on 20
th
 February, 2010. He retained the third bill till maturity. 
 Y met the third bill on the due date but dishonoured the first and the second bills. Noting charges 
amounting to Rs. 25 for each of these two bills were incurred. 
 Y was declared insolvent and could pay only 50 paise in the rupee on 30
th
 May, 2010 in full 
settlement. Pass the journal entries in the books of X and Y.    8 
 
Q 4: Aladin & Co. (our creditors) notified us the dishonour of P. Swami’s acceptance for Rs. 650 due this 
day, noting charges Rs. 12 being paid by them. We withdrew same in exchange of our cheque.       2 
 
Q 5: Parul sold goods to Sanjeev for Rs. 1, 50, 000 on 1
st
 April, 2003. On the same date, Parul drew 4 bills 
on Sanjeev for Rs. 25, 000, Rs. 20, 000, Rs. 35, 000 and Rs. 70, 000 for 1 month, 2 months, 3 months, 
and 4 months respectively. The bills were accepted by Sanjeev. The first bill was honoured on due 
date. Second bill was discounted with the bank by Parul @ 12% p.a. on 4
th
 May, 2003. Third bill was 
endorsed by Parul to Harishankar on 10
th
 May, 2003. Fourth bill was sent to bank for collection by 
Parul on 5
th
 June, 2003. The bill which was discounted with the bank was dishonoured on due date 
and bank paid Rs. 50 as noting charges. 
 The third and fourth bill were duly honoured. Pass the necessary journal entries in the books of 
Parul.           8  
 
Q 6: Journalise the following transactions in the books of G. Growver:  
A. Dutt’s Promissory Note for rs. 70, 000 which G. Grover had endorsed in favour of B. Mukherjee 
dishonoured. B. Mukherjee paid Rs. 1, 000 as noting charges. G. Grover pays B. Mukherjee by 
cheque and accepts from A. Dutt another bill for the amount due plus interest, Rs. 1, 500. 4 
 
Q 7: Distinguish between Trade bill and Accommodation bill.     2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
PUNEET COLLEGE 
TEST NO – 05 (2013 – 14) 
BILLS OF EXCHANGE 
27
TH
 JULY, 13 
TIME – 1 Hr 30 MIN          SET – 2            MM ? 26 
 
Q 1: On 16.06.05 X draws a bill on Y for Rs. 25, 000 for 30 days. 19
th
 July is a public holiday, due date of 
the bill will be: 
1. 19
th
 July  2. 18
th
 July  3. 17
th
 July  4. 16
th
 July. 1 
 
Q 2: On 18.2.05 A draw a bill on B for Rs. 10, 000. B accepted the bill on 21.2.05. The bill is drawn for 30 
days after sight. The due date of the bill will be: 
1. 24.3.05  2. 22.3.05  3. 26.3.05  4. 21.3.05 1 
 
Q 3: Mahesh drew a bill on Suresh on 7
th
 Jan., 2011 for Rs. 9, 000 payable after 3 months. After 
acceptance the bill was endorsed to Ramesh who discounted it with his bank on 10
th
 Jan. @ 8% p.a. 
On the due date, the bill was dishonoured and Rs. 100 were paid as noting charge. 
Mahesh paid off Ramesh’s dues in full and on Suresh’s request drew on him a new bill for 3 months 
adding interest Rs. 240 and noting charges. 
Before the due date, Suresh became insolvent and 50 paise in a rupee only could be realised from his 
estate. Pass Journal entries in the books of Mahesh and Suresh.    8  
 
Q 4: Our own acceptance to Dawood & Co. for Rs. 435 dishonoured this day (due to omission of necessary 
instructions to our bankers to pay). Received claim from Dawood & Co. for Rs. 450 including noting 
charges which we settled by cheque.       2  
 
Q 5: Namita sold goods to Monika for Rs. 25, 000 on 1
st
 January, 2003. On the same date, four bills were 
drawn on Monika and accepted by her for Rs. 4, 000, Rs. 5, 000, Rs. 6, 500 and Rs. 9, 500 for 2 
months, 3 months, 4 months and 5 months respectively. The bill for Rs. 4, 000 was sent by Namita to 
bank for collection on 15
th
 January, 2003, whereas the bill for Rs. 5, 000 was discounted with the 
bank @ 12% on 31
st
 January, 2003. As Namita owed Rs. 6, 500 to Neha so she endorsed the third bill 
in favour of Neha on 3
rd
 February, 2003. The fourth bill was retained by Namita till due date. The 
first and second bill were honoured on due date but the third bill was dishonoured. On due date of 
the fourth bill, Monika became insolvent and could only pay 50 paise in a rupee. Pass necessary 
journal entries in the books of Namita.       8 
 
Q 6: Journalise the following in the books of Harish. Harish sends Hari’s acceptance for Rs. 26, 000 to 
Baboo to meet his acceptance for the like amount in favour of Baboo. 
Shyam requests Mohan to renew his acceptance for rs. 15, 000 for 2 months. Mohan agrees to it 
provided interest is paid @ 10% in cash.       4 
 
Q 7: Distinguish between Bills of Exchange and Promissory Note.    2 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
+1 ACC Test No – 4 BILLS OF EXCHANGE SOLUTION SET 1 (26
th
 JULY, 2013) 
 
Ans 1: 19
th
 Nov. 
 
Ans 2: 9 – 04 – 05. 
 
Ans 3:  
Date Particulars X Dr.  X Cr. Date Particulars X  Dr. X Cr. 
12.2.10 
 
 
15.2.10 
 
 
 
 
20.2.10 
 
 
15.3.10 
 
 
 
18.3.10 
 
 
18.4.10 
 
 
 
 
 
18.5.10 
 
 
 
 
 
30.5.10 
Y 
    To sales 
 
6, 000 
 
 
3, 000 
2, 000 
1, 000 
 
 
2, 000 
 
 
2, 950 
      50 
 
 
1, 000 
 
 
2, 000 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
2, 525 
2, 525 
 
6, 000 
 
 
 
 
6, 000 
 
 
2, 000 
 
 
 
3, 000 
 
 
1, 000 
 
 
2, 000 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
 
5, 050 
12.2.10 
 
 
15.2.10 
 
 
 
 
18.3.10 
 
 
18.4.10 
 
 
 
 
 
 
18.5.10 
 
 
 
 
 
30.5.10 
Purchase 
    To X 
6, 000 
 
 
6, 000 
 
 
 
 
1, 000 
 
 
2, 000 
 
 
 
      25 
 
 
3, 000 
 
 
     25 
 
 
5, 525 
 
6, 000 
 
 
3, 000 
2, 000 
1, 000 
 
 
1, 000 
 
 
2, 000 
 
 
 
      25 
 
 
3, 000 
 
 
      25 
 
 
2, 525 
2, 525 
B/R1  
B/R2 
B/R3 
    To Y 
 
X  
    To B/P1 
    To B/P2 
    To B/P3 
Z 
    To B/R2 
 
B/P3 
    To Cash 
Bank 
Discount 
    To B/R1 
 
B/P2 
    To X 
Cash 
    To B/R3 
 
N/C 
    To X 
Y  
    To Z 
 
B/P1 
    To X 
Y  
    To Z 
 
N/C 
    To X 
Y  
    To Bank 
 
X 
    To Cash 
    To Deficiency 
Y 
    To Bank 
 
Cash 
Bad debts 
    To Y 
 
 
Ans 4:  
Particulars Dr. Rs. Cr. Rs. 
P. Swami Dr. 
    To Aladin 
 
650 
 
 
  12 
 
 
662 
 
650 
 
 
  12 
 
 
662 
P. Swami Dr. 
    To Aladin 
 
Aladin  Dr. 
    To bank 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
Ans 5:      BOOKS OF PARUL 
Date Particulars Dr. Rs. Cr. Rs. 
1.4.03 
 
 
 
 
 
 
 
 
4.5.03 
 
 
4.5.03 
 
 
 
10.5.03 
 
 
4.6.03 
 
 
 
 
 
5.6.03 
 
 
4.8.3 
Sanjeev Dr. 
    To Sales 
 
1, 50, 000 
 
 
    25, 000 
    20, 000 
    35, 000 
    70, 000 
 
 
    25, 000 
 
 
    19, 800 
          200 
 
 
    35, 000 
 
 
    20, 000 
 
 
           50 
 
 
    70, 000 
 
 
    70, 000 
 
1, 50, 000 
 
 
 
 
 
1, 50, 000 
 
 
    25, 000 
 
 
 
    20, 000 
 
 
    35, 000 
 
 
    20, 000 
 
 
            50 
 
 
    70, 000 
 
 
    70, 000 
B/R1 Dr. 
B/R2 Dr. 
B/R3 Dr. 
B/R4 Dr. 
    To Sanjeev 
 
Cash Dr. 
    To B/R1 
 
Bank Dr. 
Discount Dr. 
    To B/R2 
 
Hari Dr. 
    To B/R3 
 
Sanjeev Dr. 
    To Bank 
 
Sanjeev Dr. 
    To Bank 
 
BSFC Dr. 
    To B/R4 
 
Bank Dr. 
    To BSFC 
 
 
Ans 6:      Journal of G. Grover 
Date Partiuclars LF Dr. Rs. Cr. Rs. 
 A. Dutt  Dr. 
To B. Mukherjee 
 71, 000 
 
71, 000 
 
  1, 500 
 
72, 500 
 
71, 000 
 
71, 000 
 
  1, 500 
 
72, 500 
B. Mukherjee Dr. 
To Bank A/c 
A. Dutt Dr. 
To Interest A/c 
Bils Receivable A/c Dr. 
To A. Dutt 
 
 
 
 
 
 
 
 
 
 
PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege 
+1 ACC Test No – 4 BILLS OF EXCHANGE SOLUTION SET 2 (26
th
 JULY, 2013) 
 
Ans 1: 18
th
 July,  
 
Ans 2: 26.3.05 
 
Ans 3:    Mahesh      Suresh 
Date Particulars Dr. Rs. Cr. Rs. Date Particulars Dr. Rs. Cr. Rs. 
7.1.11 
 
 
 
 
 
10.4.11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13.7.11 
B/R 
    To Suresh 
 
9, 000 
 
 
9, 000 
 
 
9, 000 
 
 
    100 
 
 
9, 100 
 
 
    240 
 
 
9, 340 
 
 
9, 340 
 
 
4, 670 
4, 670 
 
9, 000 
 
 
9, 000 
 
 
9, 000 
 
 
    100 
 
 
9, 100 
 
 
    240 
 
 
9, 340 
 
 
9, 340 
 
 
 
9, 340 
7.1.11 
 
 
10.4.11 
 
 
 
 
 
 
 
 
 
 
 
13.7.11 
Mahesh 
    To B/P 
9, 000 
 
 
9, 000 
 
 
    100 
 
 
    240 
 
 
9, 340 
 
 
9, 340 
 
 
9, 340 
 
9, 000 
 
 
9, 000 
 
 
    100 
 
 
    240 
 
 
9, 340 
 
 
9, 340 
 
 
4, 670 
4, 670 
Ramesh 
    To B/R 
 
B/P 
    To Mahesh 
Suresh 
    To Ramesh 
 
N/C 
    To Mahesh 
Suresh 
    To Ramesh 
 
Interest 
    To Mahesh 
Ramesh 
    To Cash 
 
Mahesh 
    To B/P 
Suresh  
    To Interest 
 
B/P 
    To Mahesh 
B/R 
    To Suresh 
 
Mahesh 
    To Cash 
    To Deficiency 
Suresh  
    To B/R 
 
Cash 
Bad Debts 
    To Suresh 
 
 
Ans 4:   
Particulars Dr. Rs. Cr. Rs. 
B/P Dr. 
    To Dawood 
 
435 
 
 
  15 
 
 
450 
 
435 
 
 
  15 
 
 
450 
N/C Dr. 
    To Dawood 
 
Dawood Dr. 
    To Bank 
 
 
 
 
 
 
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