Commerce Exam  >  Commerce Notes  >  Accountancy Class 11  >  NCERT Solution (Part - 2) - Bills of Exchange

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce PDF Download

Q2 :  On Jan 01,2016, Shankar purchased goods from Parvati for Rs 8,000 and immediately drew a promissory note in favour of Parvati payable after 3 months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act 1881. Since, Parvati was unaware about the provision of the law regarding the date of maturity of the bill, she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to Parvati immediately. Record the necessary Journal entries in the books of Parvati and Shankar.
Answer :

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Note: Here, it has been assumed holiday on Apr.04, 2016 is emergency holiday if it had gazetted holiday, the Promissory Note should have been discharged on Apr.05, 2011.

Q3 : Vishal sold goods for Rs 7,000 to Manju on Jan 05, 2066 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank@12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books  of Vishal and Manju.
Answer : NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

 

Q4 : On Feb 01, 2016, John purchased goods for Rs 15,000 from Jimmi. He immediately made a payment of Rs 5,000 by cheque and for the balance accepted the bill of exchange drawn upon him by Jimmi. The bill of exchange was payable after 40 days. Five days before the maturity of the bill, Jimmi sent the same to his bank for collection. The bank duly presented the bill to John on the due date who met the bill. The bank informed the same to Jimmi. Prepare John’s account in the books of Jimmi and Jimmi account in the books of John.
Answer :

 NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Page No 334:
Q5 : On Jan 15, 2015, Kartar Sold goods for Rs 30,000 to Bhagwan and drew upon him three bills of exchanges of Rs 10,000 each payable after one month, two month, and three months respectively. The first bill was retained by Kartar till its maturity. The second bill was endorsed by him in favour of his creditor Ratna and the third bill was discounted by him immediately @ 6% p.a. All the bills were met by Bhagwan. Journalise the above transactions in the books of Kartar and Bhagwan. Also prepare ledger accounts in books of Kartar and Bhagwan.
Answer:

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Q6 : On Jan. 01, 2016 Arun sold goods for Rs 30,000 to Sunil. 50% of the payment was made immediately by Sunil on which Arun allowed a cash discount of 2%. For the balance Sunil drew a promissory note in favour of Arun payable after 20 days. Since, the date of maturity of bill was a public holiday, Arun presented the bill on a day, as per the provisions of Negotiable Instrument Act which was met by Sunil. State the date on which the bill was presented by Arun for payment and Journalise the above transactions in the books of Arun and Sunil.
Answer :

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Note: Date of maturity of the promissory note is Jan. 24, 2016, on account of holiday, it will be presented one day earlier that is on Jan. 23, 2016.
NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Q7 : Darshan sold goods for Rs 40,000 to Varun on 8.1.2016 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date the bill was met by Varun. Record the necessary Journal entries in the books of Darshan and Varun in the following circumstances.

  • When the bill was retained by Darshan till the date of its maturity.
  • When Darshan immediately discounted the bill @ 6% p.a. with his bank.
  • When the bill was endorsed immediately by Darshan in favour of his creditor Suresh.
  • When three days before its maturity, the bill was sent by Darshan to his bank for collection.

Answer : Case (i): When the bill was retained by Darshan till the date of its maturity

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Case (ii): When Darshan immediately discounted the bill @ 6% p.a. with the bank.

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Case (iii): When the bill was endorsed immediately by Darshan in favour of his creditor Suresh.

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Case (iv): When three days before its maturity, the bill, as sent by Darshan to his bank for Collection.
NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce


NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

 

Q8 : Bansal Traders allow a trade discount of 10% on the list price of the goods purchased from them. Mohan traders, who runs a retail shop made the following purchases from Bansal Traders 

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

For all the purchases Mohan Traders drew promissory note in favour of Bansal Traders payable after 30 days. The promissory note for the sale of Dec. 21, 2016 was retained by Bansal Traders with them till the date of its maturity. The promissory note drawn on 26.12.2016 was discounted by Bansal Traders from their bank at 12% p.a. The promissory note drawn on Dec. 28, 2016 was endorsed by Bansal Traders in favour of their creditor Dream Soaps in full settlement of a purchase amounting to Rs 1,900. On 25.1.2017 Bansal Traders sent the promissory note drawn on Dec. 31, 2016 to their bank for collection. All the promissory notes were met by Mohan Trade Rs Record the necessary journal entries for the above transactions in the books of Bansal Traders and Mohan Traders and prepare Mohan Traders account in the books of Bansal Traders and Bansal Traders account in the books of Mohan Trade Rs 
Answer :

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce


NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

 

Q9 : Narayanan purchased goods for Rs 25,000 from Ravinderan on Feb. 01, 2016. Ravinderan drew upon Narayanan a bill of exchange for the same amount payable after 30 days. On the due date Narayanan dishonoured his acceptance. Pass the necessary journal entries in the books of Ravinderan and Narayanan in following cases:

  1. When the bill was retained by Ravinderan with him till the date of its maturity.
  2. When the bill was discounted by Ravinderan immediately with his bank @ 6% Case (i) :
  3. When the bill was retained by Ravinderan with him till the date of its maturity p.a.
  4. When the bill was endorsed to his creditor Ganeshan.
  5. When the bill was sent by Ravinderan to his bank for collection a few day before it maturity.

Answer :
Case (i) : When the bill was retained by Ravinderan with him till the date of its maturity


NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Case (ii) : When the bill was discounted by Ravinderan immediately with his bank @ 6% p.a.

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Case (iii) : When the bill was endorsed to his creditor Ganeshan

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

Case (iv) : When the bill was sent by Ravinderan to his bank for collection a few days before it maturity 

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

The document NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce is a part of the Commerce Course Accountancy Class 11.
All you need of Commerce at this link: Commerce
82 videos|105 docs|42 tests

Up next

FAQs on NCERT Solution (Part - 2) - Bills of Exchange - Accountancy Class 11 - Commerce

1. What is a bill of exchange?
Ans. A bill of exchange is a negotiable instrument that is used in commercial transactions to provide a written agreement between two parties for the payment of a certain amount of money at a specific future date.
2. What are the parties involved in a bill of exchange?
Ans. The parties involved in a bill of exchange are the drawer, the drawee, and the payee. The drawer is the person who issues the bill and orders the drawee to make the payment. The drawee is the person or entity who is obligated to make the payment, and the payee is the person or entity who will receive the payment.
3. What are the essential features of a bill of exchange?
Ans. The essential features of a bill of exchange include a written instrument, an unconditional order to pay a certain amount of money, a specific date of payment, the signature of the drawer, and acceptance by the drawee.
4. What is the difference between a bill of exchange and a promissory note?
Ans. The main difference between a bill of exchange and a promissory note is that a bill of exchange involves three parties (drawer, drawee, and payee) whereas a promissory note involves only two parties (maker and payee). Additionally, a bill of exchange is an order to pay, while a promissory note is a promise to pay.
5. How does discounting of a bill of exchange work?
Ans. Discounting of a bill of exchange refers to the process of selling the bill to a bank or a financial institution before its maturity date. The bank or financial institution pays the present value of the bill to the holder, deducting a certain discount as per the prevailing market rate of interest. The bank then becomes the holder of the bill and collects the full amount from the drawee on the maturity date.
82 videos|105 docs|42 tests
Download as PDF

Up next

Explore Courses for Commerce exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

study material

,

video lectures

,

MCQs

,

practice quizzes

,

Extra Questions

,

mock tests for examination

,

Viva Questions

,

Objective type Questions

,

Previous Year Questions with Solutions

,

past year papers

,

pdf

,

Important questions

,

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

,

shortcuts and tricks

,

Sample Paper

,

Free

,

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

,

ppt

,

Semester Notes

,

Exam

,

Summary

,

NCERT Solution (Part - 2) - Bills of Exchange | Accountancy Class 11 - Commerce

;