Page 133 - DEBK-XI(2020)

16.14 Double Entry Book Keeping—CBSE XI

C’S JOURNAL (ENDORSEE)

Date Particulars L.F. Dr. (`) Cr. (`)
2018
Jan. 11 Bills Receivable A/c ...Dr. 5,000
To A 5,000
(Being the bill received from A)
April 4 A ...Dr. 5,100
To Bills Receivable A/c 5,000
To Cash A/c 100
(Being the bill dishonoured and paid noting charges)

Unsolved Questions

1. A sells goods for ` 40,000 to B on 1st January, 2012 and on the same day draws a bill on
B at three months for the amount. B accepts it and returns it to A, who discounts it on
4th January, 2012 with his bank at 6% p.a. The acceptance is dishonoured on the due date
and the noting charges were paid by bank being ` 200.
On 4th April, 2012, B accepts a new bill at three months for the amount then due to
A together with interest at 12% p.a.
Make Journal entries to record these transactions in the books of A. (KVS 2015)
2. Journalise the following transactions in the books of Swamy.
(i) Swamy’s acceptance to Pandey for ` 1,500 renewed for 3 months on the condition
that ` 500 paid in cash immediately and the remaining balance to carry interest
@ 12% p.a.
(ii) A bills payable accepted in favour of Modi for ` 4,000 returned unpaid due to lack of
instruction to the bank. Modi claims ` 4,050 (` 50 as noting charges) which is paid by
cheque. (MSE Chandigarh 2015)
3. On 15th March, 2016, X draws on Y two bills of exchange for ` 15,000 and ` 10,000 payable
at 3 months. On 20th March, 2016, X endorses the first bill to his creditor A. On 1st April,
2016, A endorses the same bill to B. The second bill is retained by X till maturity. On due
date, those two bills are dishonoured, noting charges for first and second bill being ` 300
and ` 200 respectively. Y then makes an offer to X to pay him ` 5,500 cash on account and
to settle the balance plus interest @ 9% p.a. by agreeing to accept a bill of exchange payable
at 4 months. X accepts the arrangement. But this bill is also dishonoured due to insolvency
of Y and first and final dividend of 20% is received from Y’s estate.
Show Journal entries in the books of X and Y.
[Interest on new bill—` 600; Bad Debts—` 16,480.]
4. A purchases goods of ` 62,000 plus IGST @ 18% from B. A pays GST by cheque and gives his
acceptance for ` 60,000 in full satisfaction. B purchases goods worth ` 1,00,000 plus IGST
@ 18% from C and endorses the bill to him, paying the balance by cheque. On maturity the
bill is dishonoured, noting charges amounted to ` 1,000.
Give Journal entries in the books of A, B and C.