Page 146 - ISCDEBK-XI

Bill of Exchange 17.11
Dr. DISCOUNT RECEIVED ACCOUNT Cr.
Date Particulars ` Date Particulars `
2022 2021
March 31 To Profit & Loss A/c 2,000 July 10 By A 2,000
Dr. NOTING CHARGES ACCOUNT Cr.
Date Particulars ` Date Particulars `
2021 2022
Sept. 8 To A 100 March 31 By Profit & Loss A/c 100
Dr. INTEREST ACCOUNT Cr.
Date Particulars ` Date Particulars `
2021 2022
Sept. 9 To A 200 March 31 By Profit & Loss A/c 600
Nov. 12 To A 400
600 600

Dr. DEFICIENCY ACCOUNT Cr.
Date Particulars ` Date Particulars `

2022 2021
March 31 To Profit & Loss A/c 6,240 Dec. 12 By A 6,240
Illustration 4.
On 1st January, 2021, Gaurav drew on Chetan three Bills of Exchange in full settlement of
claim. The first ` 14,000 at one month, the second for ` 16,000 at two months and the third for
` 18,000 at three months. The bills were duly accepted by Chetan.
The first bill was endorsed by Gaurav to his creditor Tarun on 3rd January, 2021, the second bill was
discounted on 15th January, 2021, for ` 15,900 and the third bill was sent to Bank for collection
on 4th February 2021. All the bills were duly met on maturity except the second bill which was
dishonoured, noting charges being ` 240. Gaurav charged Chetan ` 300 for interest and drew on
him a fourth bill for two months for the amount due. The fourth bill was duly met on maturity.
Pass Journal entries in the books of Gaurav.
Solution: In the Books of Gaurav
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2021
Jan. 1 Bills Receivable A/c ...Dr. 48,000
To Chetan 48,000
(Being the three bills received from Chetan: No. I for ` 14,000 at one month,
No. II for ` 16,000 at two months and No. III for ` 18,000 at three months)
Jan. 3 Tarun ...Dr. 14,000
To Bills Receivable A/c 14,000
(Being the Bill No. I endorsed to Tarun, a creditor)
Jan. 15 Bank A/c ...Dr. 15,900
Discounting Charges A/c ...Dr. 100
To Bills Receivable A/c 16,000
(Being the Bill No. II discounted from Bank)