A bill for ₹ 1,000 is drawn by A and B and accepted by the latter payable at the new Delhi, Bank of India . Show what entries should be passed in the books of A under each of the following circumstances.
(a) If A retained the bill the due date and then realised it on maturity .
(b) If A discounted it with his bank for ₹950.
(c) If A endorsed it to his creditor C in full settlement of his debt.
(d) if A sent it to his bank for collection.

X draws on Y a bill for ₹ 4,000 which was duly accepted by Y,Y meets the bill on its due date. Show what entries would be passed in the books of X under each of the following circumstances. (a) If X retains the bill till due date. (b) if X discounts the same with his banker paying ₹ 100 for discount. ( c) if X endorses the same to his creditor Z in full settlement of his debt of ₹ 4,080. (d) if X sends the bill to his banker for collection the next day.

A bill for ₹ 4,500 is drawn by Mohan on Ram Nath and accepted by the latter. Show the journal entries that would be recorded in the books of both the parties under each of the following circumstances : (i) Bill is retained till the due date. (ii) Bill is discounted with his bank, Bank of Baroda, for ₹ 4,380.( Ignore GST) (iii) Bill is endorsed to creditor Mehtab in settlement of his debt of ₹ 4,520. (iv) if Mohan sent the bill to his bank for collection.

A two months Bill for ₹ 60,000 is drawn by B & Co. and accepted by C & Co. payable at the Bank of India. B & Co. gives the bill to their banker for collection. On due date, bill is honoured. Show what entries will be passed in the books of B & Co.

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.

Viaml purchased goods Rs 25,000 from Kamal on Jan 15, 2016 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill. record the necessary journal entries in the books of Kamal and Vimal when. • The bill was retained by Kamal till the date of its maturity. • The bill was immediately discounted by Kamal with his bank @ 6% p.a. • The bill was endorsed by Kamal in favour of his creditor Sharad. • Five days before its maturity the bill was sent by Kamal to his bank for collection

Ravi sold goods for Rs 40,000 to Sudershan on Feb 13, 2016. He drew four bills of exchange upon Sudershan. The first bill was for Rs 5,000 payable after one month. The second bill was for Rs10,000 payable after 40 days, the third bill was for Rs 12,000 payable after three months and fourth bill was for the balance amount payable after 19 days. Sudershan accepted all the bills and returned the same to Ravi. Ravi discounted the first bill with his bank at 6% p.a. He endorsed the second bill to his creditor Mustaq for the full settlement of a debt of Rs 10,200. The third bill was kept by Ravi with him till the date of maturity. Five days before the maturity of the fourth bill, Ravi sent the bill to his bank for collection. All the four bills were dishounoured by Sudarshan on maturity. Sudershan settled Ravi’s claim in cash three days after the dishonour of each bill along with interest @ 12% p.a. for the terms of the bills. You are requested to record the necessary journal entries in the books to Ravi, Sudershan, Mustaq and bank for the above transaction. Also prepare Sudershan’s account and Mustaq’s account in the books of Ravi.

A owed B ₹ 400. A accepted a Bill of Exchange at 3 months for this amount which B discounted for ₹ 380 Give the necessary Journal entries in the books of A and B of this bill is : (a) dishonoured on the due date (b) met at maturity and (c) retired under rebate at 6% p.a. 2 months before its maturity.

A drew a bill of ₹ 1,000 on B of 3 months which was duly accepted by the latter. A endorsed the bill to C in full payment of his own acceptance to C for a like amount. C endorsed the bill to B. pass the journal entries in the books of A, B and C.