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 BankRead More

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