Home
Class 11
ACCOUNTS
On 1st May,2019 Merchant & Co sold goods...

On 1st May,2019 Merchant & Co sold goods to AB & Co. Valued at ₹ 500 and drew upon them a bill at 3 months for the amount. AB & Co. expressed their inability to meet it, and offered to pay Merchant & co, ₹ 200 in cash and to accept a fresh bill for the balance plus interset at 6% p.a. for 3 months . Merchant & Co. agreed to the proposal and bill was renewed. on maturity the bill was duly met.
Make the entries in the books of both the parties to record the above transactions.

Promotional Banner

Topper's Solved these Questions

  • ACCOUNTING FOR BILLS OF EXCHANGE

    TS GREWAL|Exercise Qusetions with missing Values.|2 Videos

  • ACCOUNTING FOR BILLS OF EXCHANGE

    TS GREWAL|Exercise Short Answer Type Questions|5 Videos

  • ACCOUNTING EQUATION

    TS GREWAL|Exercise EVALUATION QUESTIONS|6 Videos

  • ACCOUNTING PROCEDURES - RULES OF DEBIT AND CREDIT

    TS GREWAL|Exercise Practical Problems|12 Videos

Similar Questions

Explore conceptually related problems

On 1st January 2019, A sold to B for ₹ 10, 000 and drew upon him a billl at 3 months for the amount. B accepted the bill and returned it to A. on 4th March, 2019, B retired the bill under rebate of 6 % p.a. Record these transactions in the Journal of A and B.

A sells goods of ₹ 10,000 on 1st March, 2019 to B on credit. B accepts a bill on the same date for the amount payable three months after date. A discounts the bill at 6% p.a. from bank on 4th April.On maturity, the bill is met by B. Pass the necessary Journal entries in the books of both the parties.

On 1st April 2019 , Ram sold goods to Mohan for ₹ 50,000 . On the same date, Mohan accepted a bill drawn upon him by Ram at 3 months for ₹ 50,000. on the due date, the bill was met. Give the journal entries in the books of both the parties (Ignore GST).

Vinod sold goods to Darbara Singh for ₹ 1,000 on 1st January 2019. He drew on the latter a bill for the amount payable 3 months afteer date. Iie discounted the bill with his bank for ₹ 990 on 4th January, 2019. On maturity the bill is duly met. Make the journal entriese the books of Vinod and Darbara Singh.

On 1st January , 2019 X sold goods of ₹ 20,000 to Y and drew a bill on Y at months of the amount. Y accepted the bill. The bill is met on maturity. Pass the necessary Journal entries in the books of X and Y , if X dicounted the bill @ 12% p.a. from bank on 4th January

On 20th Marchm 2019, Naresh sold goods, to Kailash to the value of ₹ 1,250. taking a bill at 3 months for the amount. On maturity the bill was dishonoured Naresh paid ₹ 10 as noting charges. On 1st july, Kailash clared his account by paying ₹ 1,260.

On 15th June , 2019 Mohan sold goods to Sohan valued at ₹ 2,000. He drew a bill at 3 months for the amount and discounted the same with his bank for ₹ 1,960 . On the due date the bill was dishonoured and Mohan paid to the amount due plus the noting charges of ₹ 10. Pass the necessary Journal entries in the book of all parties.

Ram owes ₹ 2,000 to Mohan on 1st January 2019 on this date, he accepted a draft for the amount for 3 months.Mohan got the bill discunted at his bank @ 6% p.a. on the due date, the bill was dishonoured , noting charges ₹ 20. Ram agreed to pay ₹ 520 immediately and accpet another bill for the remaining amount for 3 months together with interset at 9% p.a.. this bill was met on the due date. give the journal entries in the books of both paties.

On 1st January, 2019, Amrit sold goods to Bhanu for ₹ 50,000 and on the same day drew upon him a bill at 3 months fot he amount. Bhanu accepted the bill and returned it to Amrit. On 4th January , 2019 Amrit discounted the bill with his bank at ₹ 49,000. on the due date, the bill was dishonoued and bank paid ₹ 1,000 as noting chares. Pass the neccessary Journal entries in the books of Amrit and Bhanu.

On Jan 01, 2016 Neha sold goods for Rs 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.

TS GREWAL-ACCOUNTING FOR BILLS OF EXCHANGE-Practical Problems
  1. Y owes X ₹ 4,000 on 1st January 2019 Y accepts a 3 months bill for ₹ 3...

    Text Solution

    |

  2. On 1st January , 2019 A draws a bill in B for ₹ 1,000 payable after 3 ...

    Text Solution

    |

  3. A bill for ₹ 1,000 is drawn by A and B and accepted by the latter paya...

    Text Solution

    |

  4. On 1st January, 2019 for goods sold, Ramesh drew a Bill of Exchange on...

    Text Solution

    |

  5. A purchases goods worth ₹ 6,200 from B and gives him his acceptance fo...

    Text Solution

    |

  6. X sells goods for ₹ 40,000 to Y on 1st January , 2019 and on the same ...

    Text Solution

    |

  7. Ram owes ₹ 2,000 to Mohan on 1st January 2019 on this date, he accepte...

    Text Solution

    |

  8. On 15th June , 2019 X sold to Y goods to the value of ₹ 15,000 drawing...

    Text Solution

    |

  9. X draws a bill on Y for ₹ 2,000 on 1st January , 2019 Y accepts the ...

    Text Solution

    |

  10. On 1st june 2019, A sold goods at B for ₹250. B gave to A his acceptan...

    Text Solution

    |

  11. A sold goods to B 1st september , 2018 for ₹ 16,000. B immediately acc...

    Text Solution

    |

  12. On 1st May,2019 Merchant & Co sold goods to AB & Co. Valued at ₹ 500 a...

    Text Solution

    |

  13. A owed B ₹ 400. A accepted a Bill of Exchange at 3 months for this amo...

    Text Solution

    |

  14. Amar sells goods to Bhola for ₹ 10,000 and draws upon him a bill for t...

    Text Solution

    |

  15. Give the Joural entries for the following (a) B's acceptance to us f...

    Text Solution

    |

  16. Leena sold goods to Meena on 1st March , 2009 for ₹ 68,000 and drew tw...

    Text Solution

    |

  17. How will you record the following of transactions in the books of Ka...

    Text Solution

    |

  18. Y Purchased goods for ₹ 6000 on 1st June , 2011 from Xand on the same...

    Text Solution

    |

  19. On 1st January, 2008, A sold goods to B for ₹ 1,00,000 received ₹ 2...

    Text Solution

    |

  20. Amar sells goods to Bhola for ₹ 10,000 plus CGST and SGST @ 9% each. H...

    Text Solution

    |