Q1.
A draws upon B three Bills of
Exchange of Rs.3,000, Rs.2,000 and Rs.1,000 respectively. A week later his
first bill was mutually cancelled, B agreeing to pay 50% of the amount in cash
immediately and for the balance plus interest Rs.100, he accepted a fresh Bill
drawn by A. This new bill was endorsed to C who discounted the same with his
bankers for Rs.1,500. The second bill was discounted by A at 5%. This bill on
maturity was returned dishonoured (nothing charge being Rs.30). The third bill
was retained till maturity when it was duly met.
Give the necessary journal entries
recording the above transactions in the books of A.
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Q2.
Journalize the following in the books of Don:
(i) Bob informs Don that Ray’s acceptance for Rs.3,000
has been dishonoured and noting charges are Rs.40. Bob accepts Rs.1,000 cash
and the balance as bill at three months at interest of 10%.Don accepts from Ray
his acceptance at two months plus interest @ 12% p.a.
(ii) James owes Don Rs.3,200; he sends Don’s own acceptance
in favour of Ralph for Rs.3,160; in full settlement.
(iii) Don meets his acceptance in favour of Singh for Rs.4,500
by endorsing John’s acceptance for Rs.4,450 in full settlement.
(iv) Ray’s acceptance in favour of Don retired one month
before due date, interest is taken at the rate of 6% p.a.
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Q3.
On 1st January, 2016, A sells goods for Rs.10,000 to B
and draws a bill at three months for the amount. B accepts it and returns it to
A. On 1st March, 2016, B retires his acceptance under rebate of 12% per annum.
Record these transactions in the journals of B.
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Q4.
On 1st January, 1942 J sold goods
to N for Rs. 80,000. On the same date J drew a bill on N for the same amount at
3 months. N accepted the bill and returned the same to J.
On 4th January, 1942 J discounted
the bill with his bankers at 10% p.a. On the due date bank informed that the
bill was dishonored and N requested J to accept Rs. 40,000 immediately and draw
upon him a new bill for the remaining amount for 2 months together with
interest @ 12 p.a. J agreed on the condition. The second bill was duly honored.
Pass
Journal Entries in the books of J and show J’s A/c in the books of N.
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Q5.
Archana purchased goods from Babita on credit
for Rs. 20,000 and accepted a bill drawn by Babita for four months. Babita
discounted the bill with her bank for Rs. 19,600. Before the due date, Archana
approached Babita with a request to renew the bill. Babita agreed on the
condition but Archana should pay Rs. 16,000 with interest of Rs. 120 and accept
a new bill for the balance. This arrangement were carried through the new bill
was met on due date.
Pass
Journal Entries in the books of Archana and also prepare Archana’s account in
the books of Babita.
see in detail
