Target Publications Pvt. Ltd.

Chapter 09: Bill of Exchange (Trade Bill)

09 Bill of Exchange (trade bill)

Type A: Proforma
Solution to Practice Q.1.:

Bill of Exchange

Sairaj Gandhi,
STAMP S. V. Road, Bandra
5th Dec, 2012
` 10,000/-

Four months after date pay to me or my order the sum of Rupees Ten
Thousand only for the value received.
Sd/-
Sairaj Gandhi

ACCEPTED

To, Sd/-
Harrison Paul, Harrison Paul
MIDC Thane 7th Dec, 2012

Solution to Practice Q.2.:

Bill of Exchange
Saumil Kapadia,
STAMP Sector 5, Navi Mumbai
17th Feb, 2013
` 19,780/-

Two months after date pay to me or my order the sum of Rupees Nineteen
Thousand Seven Hundred and Eighty only for the value received.

Sd/-
Saumil Kapadia
ACCEPTED

To, Sd/-
Sujit Mehra, Sujit Mehra
Shivaji Nagar, Pune
18th Feb, 2013

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.3.:

Bill of Exchange
Mr. Avadhoot Raktade
STAMP 586, Main Road, Ajara.
1st May, 2010
` 8,800/-

Two months after date pay to me or my order the sum of Rupees Eight
Thousand and Eight Hundred only for the value received.

Sd/-
Mr. Avadhoot Raktade
ACCEPTED

To, Sd/-
Mr. Mukund Aglawe Mr. Mukund Aglawe
133, Chandni Chowk, Panvel. 5th May, 2010

Solution to Practice Q.4.:

Bill of Exchange

Shri. Suraj Patil

STAMP Bazarpeth, Sawantwadi.
1st Jan, 2011
` 19,500/-

Four months after date pay to me or my order the sum of Rupees Nineteen
Thousand and Five Hundred only for the value received.

Sd/-
Shri. Suraj Patil
ACCEPTED

To, Sd/-
Anita Desai Anita Desai
M.G. Road, Pune. 4th Jan, 2011

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
Solution to Practice Q.5.:

Bill of Exchange
Ms. Suman Raje
STAMP Kolhapur
1st Jan, 2013
` 12,000/-

Three months after date pay to Ms. Krupa Mehta, Thane or her’s order
the sum of Rupees Twelve Thousand only for the value received.

Sd/-
ACCEPTED Ms. Suman Raje

To, Sd/-
Mrs. Rajshree Masrani Mrs. Rajshree Masrani
Ahmednagar.
5th Jan, 2013

Solution to Practice Q.6.:

Bill of Exchange
Harshil Sajnani
STAMP Lokhandwala,
Kandivali
` 32,000/- 18th Mar, 2013

Two months after date pay to Anagha Shashtri, Sector 12, Navi Mumbai
or her’s order the sum of Rupees Thirty Two Thousand only for the value
received.
Sd/-
Harshil Sajnani
ACCEPTED

To, Sd/-
Sameer Mahajan Sameer Mahajan
Kalwa, Mumbai
15th Mar, 2013

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.7.:

Bill of Exchange
Vitthal Mule
STAMP 112, Bhawani Road,
Wadepuri.
` 5,700/- 20th Apr, 2009

Sixty days after date pay to Mr. Ajay Jamadar, 12, Rajarampuri, Kolhapur
or his order the sum of Rupees Five Thousand and Seven Hundred only
for the value received.
Sd/-
Vitthal Mule
ACCEPTED

Sd/-
To,
Kishor Gavate
Kishor Gavate
23rd Apr, 2009
99, Tilak Road, Janapuri.

Solution to Practice Q.8.:

Bill of Exchange
Shreenath Patil
STAMP Bridavan Dham, Nasik
15th Oct, 2007
` 9,990/-

Ninety days after date pay to Mr. Gopal Sharma, Samrat Nagar, Thane or
his order the sum of Rupees Nine Thousand Nine Hundred and Ninety only
for the value received.

Sd/-
ACCEPTED Shreenath Patil

To, Sd/-
Narayan Shastri Narayan Shastri
Shiv Colony, Dadar, Mumbai. 19th Oct, 2007

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
Solution to Practice Q.9.:

Bill of Exchange
Mrs. Archana Patil
STAMP
Vikram Nagar, Patan.
28th Dec, 2007
` 17,575/-
Ninety days after date pay to Mrs. Sheela Ghatkar, Mangal Yog, CIDCO,
Aurangabad or her’s order the sum of Rupees Seventeen Thousand Five
Hundred and Seventy Five only for value received.

Sd/-
ACCEPTED Mrs. Archana Patil

To, Sd/-
Mrs. Nalini Maniyar Mrs. Nalini Maniyar
Jalaram Krupa, Mul. 2nd Jan, 2008

Solution to Practice Q.10.:

Bill of Exchange
Shri. Amar Patil
STAMP Guruwar Peth, Karad.
31st Dec, 2007
` 9,500/-

Two months after date pay to Mr. Yogesh Ghatkar, CIDCO, Aurangabad
or his order the sum of Rupees Nine Thousand and Five Hundred
only for the value received.

Sd/-
Shri. Amar Patil
ACCEPTED

To, Sd/-
Shri. Mehul Maniyar Shri. Mehul Maniyar
Mul. 2nd Jan, 2008

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.11.:

Bill of Exchange
Renuka Hazari
STAMP 104,Umang,
Ambajogai.
` 5,500/- 20th Nov, 2007

Sixty days after date pay to Radhika Desai, Parli Vaijanath or her’s order
the sum of Rupees Five Thousand and Five Hundred only for the value
received.

Sd/-
ACCEPTED Renuka Hazari

To, Sd/-
Vimal Wadikar Vimal Wadikar
Nanded Road, Udgir. 22nd Nov, 2007

Solution to Practice Q.12.:

Bill of Exchange
Subhash Suryawanshi
STAMP Main Road, Ajara
25th May, 2006
` 5,700/-

Sixty days after date pay to Mr. Manoj Desai, Amboli or his order the sum
of Rupees Five Thousand and Seven Hundred only for the value received.

Sd/-
Subhash Suryawanshi
ACCEPTED
To,
Madhukar Bharati Sd/-
Amboli Road, Madhukar Bharati
Sawantwadi 28th May, 2006

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
Solution to Practice Q.13.:

Bill of Exchange
Rajesh Patil
STAMP
205, High Towers,
M.G.Road, Pune.
` 9,500 5th Jan, 2011

Sixty days after date pay to Vasundhara Joshi, 403, Commerce House,
Nashik or her’s order the sum of Rupees Nine Thousand and Five
Hundred only for the value received.
Sd/-
Rajesh Patil
ACCEPTED

To, Sd/-
Rajneesh Gandhi Rajneesh Gandhi
210, Business House, 10th Jan, 2011
Main Road, Surat.

Solution to Practice Q.14.:

Bill of Exchange
Jaya Ansari
STAMP Bajaj Road,
Vile Parle (West).
` 22,000/- 21st Sep, 2012

Three months after date pay to Mamta Beherwani, Malaviya Road, Vile
Parle or her’s order the sum of Rupees Twenty Two Thousand only for the
value received.

Sd/-
ACCEPTED Jaya Ansari

To,
Sameera Parmar Sd/-
Senapati Bapat Marg, Sameera Parmar
Lower Parel.
24th Sep, 2012

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.15.:

Bill of Exchange
Rupesh Mishra
STAMP Shivaji Park,
Dadar, Mumbai.
` 17,800/- 10th Dec, 2012

Ninty days after date pay to Vimal Jain, Kolhapur or his order the sum of
Rupees Seventeen Thousand Eight Hundred only for the value received.

Sd/-
Rupesh Mishra
ACCEPTED

To, Sd/-
Amit Kale Amit Kale
Vikram Nagar, Patan 14th Dec, 2012

Solution to Practice Q.16.:

Bill of Exchange
Rajkumar Mohan,
STAMP S.V.Road, Borivali
5th Jan, 2013
` 49,000/-

One month after date pay to Sonia Sainani, Kopri, Thane or her’s order
the sum of Rupees Forty Nine Thousand only for the value received.

Sd/-
Rajkumar Mohan

ACCEPTED FOR ` 45,000 ONLY

To, Sd/-
Madan Raj Madan Raj
L.B.S. Road, Thane. 7th Jan, 2013

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
Solution to Practice Q.17.:

Bill of Exchange
Bhavik Maniyar
STAMP Bazar Chowk, MUL.
1st Jan, 2008
` 15,555/-

Three months after date pay to Mr. Abhijit Patil, 423, Vikram Nagar,
Patan or his order the sum of Rupees Fifteen Thousand Five Hundred
and Fifty Five only for the value received.

Sd/-
Bhavik Maniyar
ACCEPTED FOR ` 12,000 ONLY

To, Sd/-
Mangesh Ghatkar Mangesh Ghatkar
Mangal Yog, Aurangabad. 3rd Jan, 2008

Solution to Practice Q.18.:

Bill of Exchange
Ajit Patil
STAMP Viveknagar, Pune.
22nd Feb, 2008
` 5,500/-

Two months after date pay to Mr. Ranjit Jagadale, Nashik or his order
the sum of Rupees Five Thousand and Five Hundred only for the value
received.

Sd/-
Ajit Patil
ACCEPTED FOR ` 5,000 ONLY

Sd/-
To,
Sujit Kale
Sujit Kale
27th Feb, 2008
Main Road, Latur.

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.19.:

Bill of Exchange

STAMP Ramesh Mishra

L.B.S. Road, Ghatkopar
Mumbai.
` 25,000 17th Feb, 2014

Ninety days after date pay to Mr. Rupesh Kumar Pande, Rajkamal Chowk,
Amaravati or his order the sum of Rupees Twenty Five Thousand only
for the value received.
Sd/-
Ramesh Mishra
ACCEPTED FOR ` 20,000 ONLY

Sd/-
To, Nandkumar Sharma
Nandkumar Sharma, 20th Feb, 2014
Laxmi Road, Pune

Type B: Practical Questions

Solution to Practice Q.1.: In the Books of Vijay

Journal Entries

Debit Credit
Date Particulars L.F.
` `
2012
Aug 1 Ajay’s A/c Dr. 12,000
To Sales A/c 12,000
(Being goods sold on credit)
Aug 1 Bills Receivable A/c Dr. 12,000
To Ajay’s A/c 12,000
(Being bill drawn for 3 months)
Sep 1 Purchases A/c Dr. 20,000
To Raj’s A/c 20,000
(Being goods purchased on credit)
Sep 1 Raj’s A/c Dr. 20,000
To Bills Receivable A/c 12,000
To Bank A/c 8,000
(Being bill endorsed to Raj and balance amount paid by cheque)
Total: 64,000 64,000

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
In the Books of Ajay
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Aug 1 Purchases A/c Dr. 12,000
To Vijay’s A/c 12,000
(Being goods purchased on credit)
Aug 1 Vijay’s A/c Dr. 12,000
To Bills Payable A/c 12,000
(Being bill accepted for 3 months)
Nov 4 Bills Payable A/c Dr. 12,000
To Cash A/c 12,000
(Being bill honoured)
Total: 36,000 36,000
In the Books of Raj
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Sep 1 Vijay’s A/c Dr. 20,000
To Sales A/c 20,000
(Being goods sold on credit)
Sep 1 Bills Receivable A/c Dr. 12,000
To Vijay’s A/c 12,000
(Being endorsement received)
Sep 1 Bank A/c Dr. 8,000
To Vijay’s A/c 8,000
(Being balance amount received by cheque)
Sep 1 Cash / Bank A/c Dr. 11,760
Discount A/c Dr. 240
To Bills Receivable A/c 12,000
(Being bill discounted with the bank)
Total: 52,000 52,000
Solution to Practice Q.2.: In the Books of Bhagyashri (Drawer)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Rupa’s A/c Dr. 24,000
To Sales A/c 24,000
(Being good sold on credit)
2. Cash A/c Dr. 10,000
To Rupa’s A/c 10,000
(Being cash received on the spot)
3. Bills Receivable A/c Dr. 14,000
To Rupa’s A/c 14,000
(Being bill drawn for balance for 4 months)
4. Bank A/c Dr. 13,650
Discount A/c Dr. 350
To Bills Receivable A/c 14,000
(Being bill discounted with the bank)

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
5. Rupa’s A/c Dr. 14,200
To Bank A/c 14,200
(Being discounted bill dishonoured and noting charges paid by bank)
6. Cash A/c Dr. 7,200
To Rupa’s A/c 7,200
(Being part payment received along with full amount of noting
charges)
7. Rupa’s A/c Dr. 100
To Interest A/c 100
(Being interest receivable on the balance amount)
8. Bills Receivable A/c Dr. 7,100
To Rupa’s A/c 7,100
(Being new bill drawn for 2 months along with interest)
Total: 90,600 90,600

Solution to Practice Q.3.: In the Books of Sparsh (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2013
Jul 15 Rashi’s A/c Dr. 13,000
To Sales A/c 13,000
(Being goods sold on credit)
Jul 15 Bills Receivable I A/c Dr. 5,000
To Rashi’s A/c 5,000
(Being bill I drawn for 2 months)
Jul 15 Bill Receivable II A/c Dr. 8,000
To Rashi’s A/c 8,000
(Being bill II drawn for 3 months)
Aug 14 Bill Sent for Collection A/c Dr. 5,000
To Bills Receivable I A/c 5,000
(Being bill sent for collection)
Aug 14 Cash / Bank A/c Dr. 7,840
Discount A/c Dr. 160
To Bills Receivable II A/c 8,000
(Being bill discounted with the bank)
Oct 18 Rashi’s A/c Dr. 5,000
To Bill Sent for Collection A/c 5,000
(Being bill sent for collection dishonoured)
Oct 18 Rashi’s A/c Dr. 100
To Cash A/c 100
(Being noting charges paid)
Total: 44,100 44,100
Rashi’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
2013 2013
Jul 15 To Sales A/c 13,000 Jul 15 By Bills Receivable I A/c 5,000
Oct 18 To Bill Sent for Collection A/c 5,000 Jul 15 By Bills Receivable II A/c 8,000
Oct 18 To Cash A/c 100 By Balance c/d 5,100
18,100 18,100

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
Solution to Practice Q.4.: In the Books of Sunita (Drawer)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2013
Sep 19 Vijay’s A/c Dr. 25,000
To Sales A/c 2,5000
(Being goods sold on credit)
Sep 19 Bills Receivable A/c Dr. 25,000
To Vijay’s A/c 25,000
(Being bill drawn for 3 months)
A.
Dec 22 Cash A/c Dr. 25,000
To Bills Receivable A/c 25,000
(Being bill honoured)
B.
Sep 19 Cash / Bank A/c Dr. 24,062
Discount A/c Dr. 938
To Bills Receivable A/c 25,000
(Being bill discounted with the bank)
C.
Sep 19 Sachin’s A/c Dr. 25,000
To Bills Receivable A/c 25,000
(Being bill endorsed to Sachin)
D.
Dec 16 Bill Sent for Collection A/c Dr. 25,000
To Bills Receivable A/c 25,000
(Being bill sent for collection)
Dec 22 Cash A/c Dr. 25,000
To Bill Sent for Collection A/c 25,000
(Being bill sent for collection honoured)
Total: 1,75,000 1,75,000
In the Books of Vijay (Drawee)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2013
Sep 19 Purchases A/c Dr. 25,000
To Sunita’s A/c 25,000
(Being goods puchased on credit)
Sep 19 Sunita’s A/c Dr. 25,000
To Bills Payable A/c 25,000
(Being bill accepted for 3 months)
A.
Dec 22 Bills Payable A/c Dr. 25,000
To Cash A/c 25,000
(Being bill honoured)
B.
Dec 22 Bills Payable A/c Dr. 25,000
To Cash A/c 25,000
(Being bill honoured)

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
C.
Dec 22 Bills Payable A/c Dr. 25,000
To Cash A/c 25,000
(Being bill honoured)
D.
Dec 22 Bills Payable A/c Dr. 25,000
To Cash A/c 25,000
(Being bill honoured)
Total: 1,50,000 1,50,000

Solution to Practice Q.5.: In the Books of Jainee (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Hena’s A/c Dr. 25,000
To Sales A/c 25,000
(Being goods sold on credit)
2. Bills Receivable A/c Dr. 20,000
To Hena’s A/c 20,000
(Being bill drawn for 3 months)
3. Cash A/c Dr. 5,000
To Hena’s A/c 5,000
(Being balance paid by Hena)
4. Purchases A/c Dr. 20,000
To Viral’s A/c 20,000
(Being goods purchased on credit)
5. Viral’s A/c Dr. 20,000
To Bills Receivable A/c 20,000
(Being bill endorsed to Viral)
6. Hena’s A/c Dr. 20,000
To Viral’s A/c 20,000
(Being endorsed bill dishonoured)
7. Cash A/c Dr. 850
To Hena’s A/c 850
(Being noting charges and interest paid by Hena)
8. Bills Receivable A/c Dr. 20,000
To Hena’s A/c 20,000
(Being new bill drawn)
9. Cash A/c Dr. 20,000
To Bills Receivable A/c 20,000
(Being new bill honoured)
Total: 1,50,850 1,50,850
In the Books of Viral (Drawer)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Jainee’s A/c Dr. 20,000
To Sales A/c 20,000
(Being goods sold on credit)
2. Bills Receivable A/c Dr. 20,000
To Jainee’s A/c 20,000
(Being endorsement received)
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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)

3. Jainee’s A/c Dr. 20,000

To Bills Receivable A/c 20,000
(Being bill dishonoured)
4. Jainee’s A/c Dr. 150
To Cash A/c 150
(Being noting charges paid)
Total: 60,150 60,150

In the Books of Jainee (Drawer)

Hena’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
1. To Sales A/c 25,000 2. By Bills Receivable A/c 20,000
6. To Viral’s A/c 20,000 3. By Cash A/c 5,000
− To Interest A/c 700 7. By Cash A/c 850
− To Viral’s A/c 150 8. By Bills Receivable A/c 20,000
45,850 45,850

Solution to Practice Q.6.: In the books of Bunty (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 12,000
To Vicky’s A/c 12,000
(Being bill drawn for 3 months)
2. Bank A/c Dr. 11,800
Discount A/c Dr. 200
To Bills Receivable A/c 12,000
(Being bill discounted with bank)
3. Vicky’s A/c Dr. 12,100
To Bank A/c 12,100
(Being discounted bill dishonoured and noting charges paid by
bank)
4. Bank A/c Dr. 3,100
To Vicky’s A/c 3,100
(Being part payment received along with noting charges)
5. Vicky’s A/c Dr. 270
To Interest A/c 270
(Being interest receivable on the balance amount)
6. Bills Receivable A/c Dr. 9,270
To Vicky’s A/c 9,270
(Being new bill drawn for 3 months with interest)
7. Bill Sent for Collection A/c Dr. 9,270
To Bills Receivable A/c 9,270
(Being bill sent to bank for collection)
8. Bank A/c Dr. 9,200
Bank Charges A/c Dr. 70
To Bill Sent for Collection A/c 9,270
(Being bill honoured and bank charges debited)
Total: 67,280 67,280

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
In the Books of Vicky (Drawee)
Bunty’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
1. To Bills Payable A/c 12,000 − By Balance b/d 12,000
3. To Bank A/c 3,100 2. By Bills Payable A/c 12,100
5. To Bills Payable A/c 9,270 4. By Interest A/c 270
24,370 24,370

Solution to Practice Q.7.: In the books of Sakshi (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Seema’s A/c Dr. 20,000
To Sales A/c 20,000
(Being goods sold on credit)
2. Bills Receivable A/c Dr. 20,000
To Seema’s A/c 20,000
(Being bill drawn for 3 months)
3. Seema’s A/c Dr. 20,000
To Bills Receivable A/c 20,000
(Being retained bill cancelled)
4. Seema’s A/c Dr. 500
To Interest A/c 500
(Being interest receivable)
5. Cash A/c Dr. 10,500
To Seema’s A/c 10,500
(Being part payment received along with interest)
6. Bills Receivable A/c Dr. 10,000
To Seema’s A/c 10,000
(Being new bill drawn for the balance amount due)
7. Cash A/c Dr. 10,000
To Bills Receivable A/c 10,000
(Being new bill honoured)
Total: 91,000 91,000

Solution to Practice Q.8.: In the Books of Priyesh (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2013
Apr 30 Bills Receivable A/c Dr. 15,000
To Charmi’s A/c 15,000
(Being bill drawn for 3 months)
May 4 Bill Sent for Collection A/c Dr. 15,000
To Bills Receivable A/c 15,000
(Being bill sent for collection to bank)
Aug 1 Charmi’s A/c Dr. 15,000
To Bill Sent for Collection A/c 15,000
(Being bill cancelled)

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)

Aug 1 Charmi’s A/c Dr. 400

To Interest A/c 400
(Being interest receivable)
Aug 1 Cash A/c Dr. 5,000
To Charmi’s A/c 5,000
(Being part payment received)
Aug 1 Bills Receivable A/c Dr. 10,400
To Charmi’s A/c 10,400
(Being new bill drawn for the balance amount due along with
interest)
Aug 31 Charmi’s A/c Dr. 10,400
To Bills Receivable A/c 10,400
(Being new bill dishonoured)
Nov 1 Cash / Bank A/c Dr. 5,000
Bad debts A/c Dr. 5,400
To Charmi’s A/c 10,400
(Being Charmi became insolvent and only ` 5,000 amount
recovered)
Total: 81,600 81,600

In the Books of Charmi (Drawee)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2013
Apr 30 Priyesh’s A/c Dr. 15,000
To Bills Payable A/c 15,000
(Being bill accepted for 3 months)
Aug 1 Bills Payable A/c Dr. 15,000
To Priyesh’s A/c 15,000
(Being bill cancelled)
Aug 1 Priyesh’s A/c Dr. 5,000
To Cash A/c 5,000
(Being part payment made)
Aug 1 Interest A/c Dr. 400
To Priyesh’s A/c 400
(Being interest payable on balance amount)
Aug 1 Priyesh’s A/c Dr. 10,400
To Bills Payable A/c 10,400
(Being new bill accepted for 2 months along with interest)
Nov 1 Bills Payable A/c Dr. 10,400
To Priyesh’s A/c 10,400
(Being new bill dishonoured)
Nov 1 Priyesh’s A/c Dr. 10,400
To Cash / Bank A/c 5,000
To Deficiency A/c 5,400
(Being amount paid in full settlement)
Total: 66,600 66,600

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.9.: In the Books of Sanjay (Drawer)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 12,000
To Pappu’s A/c 12,000
(Being bill drawn for 3 months)
2. Bank A/c Dr. 11,700
Discount A/c Dr. 300
To Bills Receivable A/c 12,000
(Being bill discounted with the bank)
3. Pappu’s A/c Dr. 12,200
To Bills Receivable A/c 12,200
(Being bill dishonoured and noting charges paid)
4. Cash A/c Dr. 4,000
To Pappu’s A/c 4,000
(Being part payment received)
5. Bills Receivable A/c Dr. 8,200
To Pappu’s A/c 8,200
(Being new bill accepted)
6. Vinayak’s A/c Dr. 8,200
To Bills Receivable A/c 8,200
(Being new bill endorsed)
Total: 56,600 56,600
In the Books of Pappu (Drawee)
Sanjay’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
1. To Bills Payable A/c 12,000 - By Balance b/d 12,000
3. To Cash A/c 4,000 2. By Bills Payable A/c 12,000
5. To Bills Payable A/c 8,200 4. By Noting Charges A/c 200
24,200 24,200

Solution to Practice Q.10.: In the Books of Giridhar (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2007
Mar 12 Bills Receivable A/c Dr. 24,000
To Shridhar’s A/c 24,000
(Being bill drawn for 3 months)
Mar 12 Murlidhar’s A/c Dr. 24,000
To Bills Receivable A/c 24,000
(Being bill endorsed)
Jun 12 Shridhar’s A/c Dr. 24,000
To Murlidhar’s A/c 24,000
(Being endorsed bill cancelled on request of Shridhar)
Jun 12 Bank A/c Dr. 12,000
To Shridhar’s A/c 12,000
(Being part payment received)

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Jun 12 Shridhar’s A/c Dr. 200

To Interest A/c 200
(Being interest receivable on the balance amount)
Jun 12 Bills Receivable A/c Dr. 12,200
To Shridhar’s 12,200
(Being new bill drawn for 2 months)
Jun 12 Bill Sent for Collection A/c Dr. 12,200
To Bills Receivable A/c 12,200
(Being new bill sent to bank for collection)
Aug 14 Bank A/c Dr. 12,100
Bank Charges A/c Dr. 100
To Bill Sent for Collection A/c 12,200
(Being new bill collected by bank)
Total: 1,20,800 1,20,800
Shridhar’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
2007 2007
Mar 12 To Balance b/d 24,000 Mar 12 By Bills Receivable A/c 24,000
Jun 12 To Murlidhar’s A/c 24,000 Jun 12 By Bank A/c 12,000
Jun 12 To Interest A/c 200 Jun 12 By Bills Receivable 12,200
48,200 48,200

Solution to Practice Q.11.: In the Books of Subhash (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 20,000
To Prakash’s A/c 20,000
(Being bill drawn for 3 months)
2. Bank A/c Dr. 19,500
Discount A/c Dr. 500
To Bills Receivable A/c 20,000
(Being bill discounted with bank)
3. Prakash’s A/c Dr. 20,100
To Bank A/c 20,100
(Being dishonour of bill and noting charges paid by bank)
4. Cash A/c Dr. 10,100
To Prakash’s A/c 10,100
(Being part payment and noting charges received in cash)
5. Prakash’s A/c Dr. 500
To Interest A/c 500
(Being interest receivable)
6. Bills Receivable A/c Dr. 10,500
To Prakash’s A/c 10,500
(Being new bill received for balance amount including interest)
Total: 81,200 81,200

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Prakash’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
– To Balance b/d 20,000 1. By Bills Receivable A/c 20,000
3. To Bank A/c 20,100 4. By Cash/Bank A/c 10,100
5. To Interest A/c 500 6. By Bills Receivable A/c 10,500
40,600 40,600

Solution to Practice Q.12.: In the Books of Jaya (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2010
Jan 1 Bills Receivable A/c Dr. 54,000
To Maya’s A/c 54,000
(Being bill drawn for 4 months)
Jan 1 Bank A/c Dr. 52,560
Discount A/c Dr. 1,440
To Bills Receivable A/c 54,000
(Being bill discounted with bank)
May 4 Maya’s A/c Dr. 54,000
To Bank A/c 54,000
(Being bill cancelled on request of Maya)
May 4 Cash A/c Dr. 36,000
To Maya’s A/c 36,000
(Being part payment received)
May 4 Maya’s A/c Dr. 360
To Interest A/c 360
(Being interest receivable on the balance amount)
May 4 Bills Receivable A/c Dr. 18,360
To Maya’s A/c 18,360
(Being new bill drawn for 2 months along with interest)
May 4 Bill Sent for Collection A/c Dr. 18,360
To Bills Receivable A/c 18,360
(Being bill sent to bank for collection)
Jul 7 Bank A/c Dr. 18,360
To Bill Sent for Collection A/c 18,360
(Being bill honoured)
Total: 2,53,440 2,53,440
In the Books of Maya (Drawee)
Jaya’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
2010 2010
Jan 1 To Bills Payable A/c 54,000 Jan 1 By Balance b/d 54,000
May 4 To Cash A/c 36,000 May 4 By Bills Payable A/c 54,000
May 4 To Bills Payable A/c 18,360 May 4 By Interest A/c 360
1,08,360 1,08,360

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Solution to Practice Q.13.: In the Books of Suhas (Drawee)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Sunil’s A/c Dr. 10,000
To Bills Payable A/c 10,000
(Being bill accepted for 3 months)
2. Bills Payable A/c Dr. 10,000
To Sunil’s A/c 10,000
(Being bill cancelled)
3. Interest A/c Dr. 200
To Sunil’s A/c 200
(Being interest payable on the balance amount)
4. Sunil’s A/c Dr. 5,700
To Cash A/c 5,700
(Being part payment made along with interest on balance amount)
5. Sunil’s A/c Dr. 4,500
To Bills Payable A/c 4,500
(Being new bill accepted for 2 months for the balance amount)
6. Bills Payable A/c Dr. 4,500
To Cash A/c 4,403
To Rebate A/c 97
(Being bill retired and rebate received)
Total: 34,900 34,900
In the Books of Sunil (Drawer)
Suhas’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
− To Balance b/d 10,000 1 By Bills Receivable A/c 10,000
3 To Bank A/c 10,000 4 By Cash A/c 5,700
5 To Interest A/c 200 6 By Bills Receivable A/c 4,500
20,200 20,200

Solution to Practice Q.14.: In the Books of Ram (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 20,000
To Krishna’s A/c 20,000
(Being bill drawn for 3 months)
2. Cash / Bank A/c Dr. 19,500
Discount A/c Dr. 500
To Bills Receivable A/c 20,000
(Being bill discounted with bank)
3. Krishna’s A/c Dr. 20,000
To Bank A/c 20,000
(Being discounted bill cancelled at the request of Krishna)
4. Krishna’s A/c Dr. 350
To Interest A/c 350
(Being interest receivable)

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5. Bills Receivable A/c Dr. 20,500
To Krishna’s A/c 20,500
(Being new bill drawn for 2 months including noting charges
and interest)
6. Cash A/c Dr. 19,000
Rebate A/c Dr. 1,500
To Bills Receivable A/c 20,500
(Being bill retired and ` 1,500 rebate allowed)
Total: 1,01,350 1,01,350
In the Books of Krishna (Drawee)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Ram’s A/c Dr. 20,000
To Bills Payable A/c 20,000
(Being bill accepted for 3 months)
2. Bills Payable A/c Dr. 20,000
To Ram’s A/c 20,000
(Being bill cancelled)
3. Interest A/c Dr. 350
To Ram’s A/c 350
(Being interest payable)
4. Ram’s A/c Dr. 20,500
To Bills Payable A/c 20,500
(Being new bill accepted for 2 months including interest and
noting charges)
5. Bills Payable A/c Dr. 20,500
To Rebate A/c 1,500
To Cash A/c 19,000
(Being bill retired and ` 1,500 rebate received)
Total: 81,350 81,350

Solution to Practice Q.15.: In the Books of Sanjay (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 13,500
To Ravi’s A/c 13,500
(Being bill drawn for 2 months)
2. Bill Sent for Collection A/c Dr. 13,500
To Bills Receivable A/c 13,500
(Being bill sent for collection)
3. Ravi’s A/c Dr. 13,500
To Bill Sent for Collection A/c 13,500
(Being bill sent for collection dishonoured)
4. Ravi’s A/c Dr. 100
To Cash A/c 100
(Being noting charges paid)
5. Cash A/c Dr. 3,850
To Ravi’s A/c 3,850
(Being part payment received along with interest and noting
charges)

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6. Bills Receivable A/c Dr. 10,000

To Ravi’s A/c 10,000
(Being new bill drawn for the balance amount due)
7. Cash A/c Dr. 9,500
Rebate A/c Dr. 500
To Bills Receivable A/c 10,000
(Being bill retired and rebate allowed)
Total: 64,450 64,450

In the Books of Ravi (Drawee)

Sanjay’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
1. To Bills Payable A/c 13,500 − By Balance b/d 13,500
4. To Cash A/c 3,850 2. By Bills Payable A/c 13,500
5. To Bills Payable A/c 10,000 3. By Interest A/c 350

27,350 27,350

Solution to Practice Q.16.: In the Books of Smita (Drawee)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2010
Apr 1 Purchases A/c Dr. 36,000
To Ramesh’s A/c 36,000
(Being goods purchased on credit)
Apr 1 Ramesh’s A/c Dr. 36,000
To Bills Payable A/c 36,000
(Being bill accepted for 2 months)
Jun 4 Bills Payable A/c Dr. 36,000
Noting Charges A/c Dr. 60
To Ramesh’s A/c 36,060
(Being bill dishonoured and noting charges payable)
Jun 4 Ramesh’s A/c Dr. 18,060
To Cash A/c 18,060
(Being part payment made)
Jun 4 Interest A/c Dr. 450
To Ramesh’s A/c 450
(Being interest payable on the balance amount)
Jun 4 Ramesh’s A/c Dr. 18,450
To Bills Payable A/c 18,450
(Being new bill accepted for 2 months)
Jul 7 Bills Payable A/c Dr. 18,450
To Cash A/c 18,200
To Rebate A/c 250
(Being bill retired and rebate received)
Total: 1,63,470 1,63,470

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Solution to Practice Q.17.: In the Books of Anjali (Drawer)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2011
Apr 1 Ravina’s A/c Dr. 5,000
To Sales A/c 5,000
(Being goods sold on credit)
Apr 1 Cash A/c Dr. 1,900
Discount A/c Dr. 100
To Ravina’s A/c 2,000
(Being part payment received and discount of 5% allowed)
Apr 1 Bills Receivable A/c Dr. 3,000
To Ravina’s A/c 3,000
(Being bill drawn for the balance amount due)
i.
Jul 4 Cash A/c Dr. 3,000
To Bills Receivable A/c 3,000
(Being bill honoured)
ii.
May 1 Cash / Bank A/c Dr. 2,940
Discount A/c Dr. 60
To Bills Receivable A/c 3,000
(Bieng bill discounted with bank)
Aug 4 Ravina’s A/c Dr. 3,000
To Bank A/c 3,000
(Being discounted bill dishonoured)
iii.
Aug 4 Bills Sent for Collection A/c Dr. 3,000
To Bills Receivable A/c 3,000
(Being bill sent for collection)
Aug 4 Bank A/c Dr. 2,800
Bank Charges A/c Dr. 200
To Bill Sent for Collection A/c 3,000
(Being amount collected by Bank and Charges debited)
iv.
Apr 1 Kantilal’s A/c Dr. 3,000
To Bills Receivable A/c 3,000
(Being bill endorsed to Kantilal)
Aug 4 Ravina’s A/c Dr. 3,000
To Kantilal’s A/c 3,000
(Being endorsed bill dishonoured)
Aug 4 Cash / Bank A/c Dr. 600
Bad debts A/c Dr. 2,400
To Ravina’s A/c 3,000
(Being Ravina became insolvent and only 20% amount
recovered)
Total: 34,000 34,000

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In the Books of Ravina (Drawee)
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2011
Apr 1 Purchases A/c Dr. 5,000
To Anjali’s A/c 5,000
(Being goods purchased on credit)
Apr 1 Anjali’s A/c Dr. 2,000
To Cash A/c 1,900
To Discount A/c 100
(Being part payment made and discount of 5% received)
Apr 1 Anjali’s A/c Dr. 3,000
To Bills Payable A/c 3,000
(Being bill accepted for 3 months)
i.
Jul 4 Bills Payable A/c Dr. 3,000
To Cash A/c 3,000
(Being bill honoured)
ii.
Aug 4 Bills Payable A/c Dr. 3,000
To Anjali’s A/c 3,000
(Being bill dishonoured)
iii.
Aug 4 Bills Payable A/c Dr. 3,000
To Cash A/c 3,0000
(Being bill honoured)
iv.
Aug 4 Bills Payable A/c Dr. 3,000
To Anjali’s A/c 3,000
(Being bill dishonoured)
Aug 4 Anjali’s A/c Dr. 3,000
To Cash / Bank A/c 600
To Deficiency A/c 2,400
(Being Ravina became insolvent and only 20% amount paid)
Total: 25,000 25,000

Solution to Practice Q.18.: In the Books of Sunil (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Ramesh’s A/c Dr. 15,000
To Sales A/c 15,000
(Being goods sold on credit)
2. Bills Receivable A/c Dr. 15,000
To Ramesh’s A/c 15,000
(Being bill drawin for 2 months)
3. Cash / Bank A/c Dr. 14,875
Discount A/c Dr. 125
To Bills Receivable A/c 15,000
(Being bill discounted with the bank)
4. Ramesh’s A/c Dr. 15,000
To Bank A/c 15,000
(Being discounted bill dishnoured)

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5. Cash A/c Dr. 8,000
To Ramesh’s A/c 8,000
(Being part payment received)
6. Ramesh’s A/c Dr. 140
To Interest A/c 140
(Being interest receivable)
7. Bills Receivable A/c Dr. 7,140
To Ramesh’s A/c 7,140
(Being new bill drawn for the balance amount due along with
interest)
8. Bill Sent for Collection A/c Dr. 7,140
To Bills Receivable A/c 7,140
(Being bill sent for collection)
9. Ramesh’s A/c Dr. 7,140
To Bill Sent for Collection A/c 7,140
(Being bill dishnoured)
10. Cash / Bank A/c Dr. 2,142
Bad Debts A/c Dr. 4,998
To Ramesh’s A/c 7,140
(Being Ramesh declared insolvent and only 30% amount recovered)
Total: 96,700 96,700

Solution to Practice Q.19.: In the Books of Sushant (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 10,000
To Rohan’s A/c 10,000
(Being bill drawn for 2 months)
2. Bill Sent for Collection A/c Dr. 10,000
To Bills Receivable A/c 10,000
(Being bill sent for collection)
3. Rohan’s A/c Dr. 10,000
To Bill Sent for Collection A/c 10,000
(Being bill cancelled at the request of Rohan)
4. Rohan’s A/c Dr. 500
To Interest A/c 500
(Being interest receivable)
5. Cash A/c Dr. 5,500
To Rohan’s A/c 5,500
(Being part payment received along with interest)
6. Bills Receivable A/c Dr. 5,000
To Rohan’s A/c 5,000
(Being new bill drawn on balance amount due)
7. Rohan’s A/c Dr. 5,000
To Bills Receivable A/c 5,000
(Being bill dishonoured)
8. Cash / Bank A/c Dr. 2,000
Bad Debts A/c Dr. 3,000
To Rohan’s A/c 5,000
(Being Rohan became insolvent and only 40% amount recovered)
Total: 51,000 51,000

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In the Books of Sushant (Drawer)
Rohan’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
− To Balance b/d 10,000 1. By Bills Receivable A/c 10,000
3. To Bill Sent for Collection A/c 10,000 5. By Cash A/c 5,500
4. To Interest A/c 500 6. By Bills Receivable A/c 5,000
7. To Bills Receivable A/c 5,000 8. By Cash / Bank A/c 2,000
8. By Bad Debts A/c 3,000

25,500 25,500

Solution to Practice Q.20.: In the Books of Manisha (Drawer)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Bills Receivable A/c Dr. 9,000
To Priti’s A/c 9,000
(Being bill drawn for 4 months)
2. Shital’s A/c Dr. 9,000
To Bills Receivable A/c 9,000
(Being bill endorsed)
3. Priti’s A/c Dr. 9,000
To Shital’s A/c 9,000
(Being bill cancelled on request of Priti)
4. Priti’s A/c Dr. 120
To Interest A/c 120
(Being interest receivable on the balance amount)
5. Cash A/c Dr. 3,120
To Priti’s A/c 3,120
(Being part payment received along with interest)
6. Bills Receivable A/c Dr. 6,000
To Priti’s A/c 6,000
(Being new bill drawn for 3 months)
7. Priti’s A/c Dr. 6,000
To Bills Receivable A/c 6,000
(Being new bill dishonoured due to insolvency)
8. Cash/Bank A/c Dr. 3,000
Bad Debts A/c Dr. 3,000
To Priti’s A/c 6,000
(Being Priti declared insolvent and only 50% amount recovered)
Total: 48,240 48,240

Solution to Practice Q.21.: In the Books of Madhav (Drawee)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Kashinath’s A/c Dr. 40,000
To Bills Payable A/c 40,000
(Being bill drawn for 3 months)
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2. Bills Payable A/c Dr. 40,000
To Kashinath’s A/c 40,000
(Being bill cancelled on the request of Madhav)
3. Interest A/c Dr. 250
To Kashinath’s A/c 250
(Being interest payable on the balance amount)
4. Kashinath’s A/c Dr. 30,250
To Cash/Bank A/c 30,250
(Being part payment made along with interest)
5. Kashinath’s A/c Dr. 10,000
To Bills Payable A/c 10,000
(Being new bill accepted for 3 months)
6. Bills Payable A/c Dr. 10,000
To Kashinath’s A/c 10,000
(Being new bill dishonoured)
7. Kashinath’s A/c Dr. 10,000
To Cash/Bank A/c 3,500
To Deficiency A/c 6,500
(Being Madhav declared insolvent and only 35% amount paid)
Total: 1,40,500 1,40,500
In the Books of Kashinath (Drawer)
Madhav’s Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
` `
– To Balance b/d 40,000 1. By Bills Receivable A/c 40,000
2. To Bank A/c 40,000 4. By Cash/Bank A/c 30,250
3. To Interest A/c 250 5. By Bills Receivable A/c 10,000
6. To Bills Receivable A/c 10,000 7. By Cash/Bank A/c 3,500
7. By Bad Debts A/c 6,500
90,250 90,250

Solution to Practice Q.22.: In the Books of Narendra (Drawee)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
1. Surendra’s A/c Dr. 8,000
To Bills Payable A/c 8,000
(Being bill accepted for 3 months)
2. Bills Payable A/c Dr. 8,000
To Surendra’s A/c 8,000
(Being bill cancelled on the request of Narendra)
3. Interest A/c Dr. 50
To Surendra’s A/c 50
(Being interest payable on the balance amount)
4. Surendra’s A/c Dr. 6,050
To Cash A/c 6,050
(Being part payment made along with interest)
5. Surendra’s A/c Dr. 2,000
To Bills Payable A/c 2,000
(Being new bill accepted)

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6. Bills Payable A/c Dr. 2,000
To Surendra’s A/c 2,000
(Being new bill dishonoured)
7. Surendra’s A/c Dr. 2,000
To Cash A/c 500
To Deficiency A/c 1,500
(Being Narendra declared insolvent and only 25% amount paid)
Total: 28,100 28,100

Solution to Practice Q.23.: In the Books of Dhamanekar (Drawee)

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2008
Jun 01 Purchases A/c Dr. 40,000
To Pednekar’s A/c 40,000
(Being goods purchased on credit)
Jun 01 Pednekar’s A/c Dr. 40,000
To Bills Payable A/c 40,000
(Being bill accepted for 3 months)
Sep 04 Bills Payable A/c Dr. 40,000
To Pednekar’s A/c 40,000
(Being bill dishonoured)
Sep 04 Noting Charges A/c Dr. 200
To Pednekar’s A/c 200
(Being noting charges paid)
Sep 04 Interest A/c Dr. 1,206
To Pednekar’s A/c 1,206
(Being interest payable on the balance amount)
Sep 04 Pednekar’s A/c Dr. 41,406
To Bills Payable’s A/c 41,406
(Being new bill accepted for 3 months)
Dec 07 Bills Payable A/c Dr. 41,406
To Pednekar’s A/c 41,406
(Being new bill dishonoured due to insolvency)
Dec 07 Pednekar’s A/c Dr. 41,406
To Cash A/c 13,802
To Deficiency A/c 27,604
(Being Pednekar declared insolvent and only 1/3rd amount paid)
Total: 2,45,624 2,45,624

Solution to Practice Q.24.: In the Books of Avadhoot

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
1. Nisha’s A/c Dr. 5,100
To Nandini’s A/c 5,100
(Being endorsed bill dishonoured and noting charges paid)
B.
2. Dhanashri’s A/c Dr. 2,400
To Bills Receivable A/c 2,400
(Being bill cancelled on the request of Dhanashri)

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3. Cash A/c Dr. 1,200
To Dhanashri’s A/c 1,200
(Being part payment received)
4. Dhanashri’s A/c Dr. 36
To Interest A/c 36
(Being interest receivable on the balance amount)
5. Bills Receivable A/c Dr. 1,236
To Dhanashri’s A/c 1,236
(Being new bill drawn with interest)
C.
6. Cash A/c Dr. 5,900
Rebate A/c Dr. 100
To Bills Receivable A/c 6,000
(Being bill retired and rebate allowed)
D.
7. Shashikala’s A/c Dr. 4,070
To Bank A/c 4,070
(Being discounted bill dishonoured and noting charges paid by
bank)
E.
8. Bill Sent for Collection A/c Dr. 6,000
To Bills Receivable A/c 6,000
(Being bill sent to bank for collection)
Total: 26,042 26,042

Solution to Practice Q.25.: In the Books of Vivek

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2010
A.
Jan 1 Mahesh’s A/c Dr. 32,800
To Sameer’s A/c 32,800
(Being endorsed bill dishonoured and noting charges paid)
B.
Feb 1 Subhash’s A/c Dr. 30,000
To Bills Receivable A/c 30,000
(Being bill dishonoured)
Feb 1 Cash A/c Dr. 14,000
To Subhash’s A/c 14,000
(Being part payment received)
Feb 1 Subhash’s A/c Dr. 400
To Interest A/c 400
(Being interest receivable on the balance amount)
Feb 1 Bills Receivable A/c Dr. 16,400
To Subhash’s A/c 16,400
(Being new bill accepted for 3 months along with interest)
C.
Feb 5 Cash A/c Dr. 11,600
Rebate A/c Dr. 400
To Bills Receivable A/c 12,000
(Being bill retired and rebate allowed)

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D.
Mar 1 Bill Sent for Collection A/c Dr. 20,000
To Bills Receivable A/c 20,000
(Being bill sent to bank for collection)
Mar 1 Sohan’s A/c Dr. 20,000
To Bill Sent for Collection A/c 20,000
(Being bill dishonoured)
Total: 1,45,600 1,45,600

Solution to Practice Q.26.: In the Books of Ashwin

Journal Entries

Debit Credit
Date Particulars L.F.
` `
A.
1. Bank A/c Dr. 5,700
Bank Charges A/c Dr. 50
To Bill Sent for Collection A/c 5,750
(Being bill sent for collection collected by bank and charges
debited)
B.
2. Nitin’s A/c Dr. 7,200
To Bills Receivable A/c 7,200
(Being bill cancelled on request of Nitin)
3. Cash A/c Dr. 2,200
To Nitin’s A/c 2,200
(Being part payment received)
4. Nitin’s A/c Dr. 100
To Interest A/c 100
(Being interest receivable on the balance amount)
5. Bills Receivable A/c Dr. 5,100
To Nitin’s A/c 5,100
(Being new bill drawn for 3 months along with interest)
C.
6. Bills Payable A/c Dr. 4,250
To Bills Receivable A/c 4,000
To Discount A/c 250
(Being our acceptance to Pravin discharged by endorsing
Bhavin’s acceptance to us)
D.
7. Cash/Bank A/c Dr. 3,400
Bad Debts A/c Dr. 5,100
To Jatin’s A/c 8,500
(Being Jatin became insolvent and only 40% amount recovered)
Total: 33,100 33,100

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.27.: In the Books of Manoj Patil
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2010
A.
Jan 1 Vaishali’s A/c Dr. 22,400
To Bills Receivable A/c 22,400
(Being bill cancelled on request of Vaishali)
Jan 1 Cash A/c Dr. 12,000
To Vaishali’s A/c 12,000
(Being part payment received)
Jan 1 Vaishali’s A/c Dr. 312
To Interest A/c 312
(Being interest receivable on the balance amount)
Jan 1 Bills Receivable A/c Dr. 10,712
To Vaishali’s A/c 10,712
(Being fresh bill accepted for 3 month along with interest)
B.
Feb 1 Cash A/c Dr. 12,600
Bad Debts A/c Dr. 15,400
To Sadashiv’s A/c 28,000
(Being 45% amount received in full settlement)
C.
Mar 1 Cash A/c Dr. 11,940
Rebate A/c Dr. 60
To Bill Receivable A/c 12,000
(Being bill retired and rebate allowed)
D.
Mar 31 Bharati’s A/c Dr. 6,000
To Bills Receivable A/c 5,750
To Discount A/c 250
(Being bill endorsed and discount earned)
Total:

Solution to Practice Q.28.: In the Books of Motilal

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
1. Jyoti’s A/c Dr. 3,750
To Bhavna’s A/c 3,750
(Being bill dishonoured and noting charges paid)
B.
2. Anil’s A/c Dr. 3,400
To Bills Receivable A/c 3,400
(Being bill cancelled on request of Anil)
3. Cash A/c Dr. 900
To Anil’s A/c 900
(Being part payment received)

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)

4. Anil’s A/c Dr. 50

To Interest A/c 50
(Being interest receivable on the balance amount)
5. Bills Receivable A/c Dr. 2,550
To Anil’s A/c 2,550
(Being new bill drawn for 3 months along with interest)
C.
6. Cash A/c Dr. 3,850
Rebate A/c Dr. 150
To Bills Receivable A/c 4,000
(Being bill retired and rebate allowed)
D.
7. Arun’s A/c Dr. 7,100
To Bank A/c 7,100
(Being discounted bill dishonoured and noting charges paid)
Total: 21,750 21,750

Solution to Practice Q.29.: In the Books of Ranbir

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
1. Salman’s A/c Dr. 3,280
To Sonam’s A/c 3,280
(Being endorsed bill dishonoured and noting charges paid by
Sonam)
B.
2. Ravindra’s A/c Dr. 4,800
To Bills Receivable A/c 4,800
(Being bill cancelled on the request of Ravindra)
3. Cash A/c Dr. 1,800
To Ravindra’s A/c 1,800
(Being part payment received in cash)
4. Ravindra’s A/c Dr. 60
To Interest A/c 60
(Being interest receivable on the balance amount)
5. Bills Receivable A/c Dr. 3,060
To Ravindra’s A/c 3,060
(Being new bill drawn for 2 months along with interest)
C.
6. Cash/Bank A/c Dr. 7,920
Rebate A/c Dr. 80
To Bills Receivable A/c 8,000
(Being bill retired and rebate allowed)
D.
7. Shirin’s A/c Dr. 5,575
To Bank A/c 5,575
(Being discounted bill dishonoured and noting charges paid by
bank)
Total: 26,575 26,575

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.30.: In the Books of Sharad
Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
i. Vasant’s A/c Dr. 5,050
To Hemant’s A/c 5,050
(Being endorsed bill dishonoured and noting charges paid)
B.
ii. Pramod’s A/c Dr. 15,000
To Bills Receivable A/c 15,000
(Being bill dishonoured)
iii. Pramod’s A/c Dr. 250
To Interest A/c 250
(Being interest receivable on the balance amount)
iv. Cash A/c Dr. 5,000
To Pramod’s A/c 5,000
(Being part payment received)
v. Bills Receivable A/c Dr. 10,250
To Pramod’s A/c 10,250
(Being new bill drawn for 3 months with interest)
C.
vi. Cash A/c Dr. 7,500
Rebate A/c Dr. 100
To Bills Receivable A/c 7,600
(Being retired and rebate allowed)
D.
vii. Bill Sent for Collection A/c Dr. 10,000
To Bills Receivable A/c 10,000
(Being bill sent to bank for collection)
viii. Amol’s A/c Dr. 10,000
To Bill Sent for Collection A/c 10,000
(Being bill dishonoured)
Total: 63,150 63,150

Solution to Practice Q.31.: In the Books of Nilesh

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
i. Sanjay’s A/c Dr. 8,200
To Naresh’s A/c 8,200
(Being bill dishonoured and noting charges paid)
B.
ii. Sujit’s A/c Dr. 4,800
To Bills Receivable A/c 4,800
(Being bill dishonoured)
iii. Cash A/c Dr. 1,600
To Sujit’s A/c 1,600
(Being part payment received)
iv. Sujit’s A/c Dr. 96
To Interest A/c 96
(Being interest receivable on the balance amount)

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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)

v. Bills Receivable A/c Dr. 3,296

To Sujit’s A/c 3,296
(Being new bill drawn for 3 months)
C.
vi. Cash A/c Dr. 23,760
Rebate A/c Dr. 240
To Bills Payable A/c 24,000
(Being bill retired and rebate allowed)
D.
vii. Prashant’s A/c Dr. 8,160
To Bank A/c 8,160
(Being bill dishonoured and noting charges paid by bank)
Total: 50,152 50,152

Solution to Practice Q.32.: In the Books of Kantilal

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
i. Sawan’s A/c Dr. 16,300
To Sandhya’s A/c 16,300
(Being bill dishonoured and noting charges paid)
B.
ii. Nalini’s A/c Dr. 6,000
To Bills Receivable A/c 6,000
(Being bill cancelled on request of Nalini)
iii. Cash A/c Dr. 2,000
To Nalini’s A/c 2,000
(Being part payment received)
iv. Nalini’s A/c Dr. 120
To Interest A/c 120
(Being interest receivable on the balance amount)
v. Bills Receivable A/c Dr. 4,120
To Nalini’s A/c 4,120
(Being new bill drawn for 3 months along with interest)
C.
vi. Cash A/c Dr. 9,950
Rebate A/c Dr. 50
To Bills Receivable A/c 10,000
(Being bill retired and rebate allowed)
D.
vii. Meenakshi’s A/c Dr. 8,000
To Bill Sent for Collection A/c 8,000
(Being bill dishonoured)
Total: 46,540 46,540

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.33.: In the Books of Bhaskar
Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
i. Nishad’s A/c Dr. 2,525
To Suresh’s A/c 2,525
(Being bill dishonoured and noting charges paid)
B.
ii. Rajesh’s A/c Dr. 7,500
To Bills Receivable A/c 7,500
(Being bill cancelled on request of Rajesh)
iii. Cash A/c Dr. 2,500
To Rajesh’s A/c 2,500
(Being part payment received)
iv. Rajesh’s A/c Dr. 125
To Interest A/c 125
(Being interest receivable on balance amount)
v. Bills Receivable A/c Dr. 5,125
To Rajesh’s A/c 5,125
(Being new bill drawn for 3 months along with interest)
C.
vi. Cash A/c Dr. 3,750
Rebate A/c Dr. 50
To Bills Receivable A/c 3,800
(Being bill retired and rebate allowed)
D.
vii. Bill Sent for Collection A/c Dr. 5,000
To Bills Receivable A/c 5,000
(Being bill sent to bank for collection)
viii. Dayaram’s A/c Dr. 5,000
To Bill Sent for Collection A/c 5,000
(Being bill sent to bank for collection dishonoured by Dayaram)
Total: 31,575 31,575

Solution to Practice Q.34.: In the Books of Kedarnath

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
i. Aloknath’s A/c Dr. 16,500
To Badrinath’s A/c 16,500
(Being endorsed bill dishonoured and noting charges paid)
B.
ii. Somnath’s A/c Dr. 14,400
To Bills Receivable A/c 14,400
(Being bill cancelled on the request of Somnath)
iii. Cash A/c Dr. 4,400
To Somnath’s A/c 4,400
(Being part payment received)
iv. Somnath’s A/c Dr. 200
To Interest A/c 200
(Being interest receivable on the balance amount)
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Target Publications Pvt. Ltd. Chapter 09: Bill of Exchange (Trade Bill)
v. Bills Receivable A/c Dr. 10,200
To Somnath’s A/c 10,200
(Being new bill drawn along with interest)
C.
vi. Cash A/c Dr. 10,250
Rebate A/c Dr. 250
To Bills Receivable A/c 10,500
(Being bill retired and rebate allowed)
D.
vii. Cash A/c Dr. 6,250
Bad Debts A/c Dr. 6,250
To Ramnath’s A/c 12,500
(Being Ramnath declared insolvent and only 50% amount
recovered)
Total: 68,700 68,700

Solution to Practice Q.35.: In the Books of Jwala

Journal Entries
Debit Credit
Date Particulars L.F.
` `
A.
i. John’s A/c Dr. 16,200
To Abdul’s A/c 16,200
(Being endorsed bill dishonoured and noting charges paid)
B.
ii. Sony’s A/c Dr. 24,000
To Bills Receivable A/c 24,000
(Being bill cancelled on request of Sony)
iii. Sony’s A/c Dr. 300
To Interest A/c 300
(Being interest receivable on the balance amount)
iv. Cash A/c Dr. 12,300
To Sony’s A/c 12,300
(Being part payment received along with interest)
v. Bills Receivable A/c Dr. 12,000
To Sony’s A/c 12,000
(Being new bill drawn for 3 months)
C.
vi. Cash A/c Dr. 14,400
Bad Debts A/c Dr. 21,600
To Trupti’s A/c 36,000
(Being Trupti became insolvent and only 40% amount recovered)
D.
vii. Rani’s A/c Dr. 6,300
To Bills Receivable A/c 6,000
To Discount A/c 300
(Being bill endorsed in full settlement and discount received)
Total: 1,07,100 1,07,100

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