PRACTICAL PROBLEMS

of Due Due D
Datte
ate

Calculation

the due dates of the bills in the

.
C a l c u l a t e

followings cases:
Date of Bill
Tenure (Period)
1st December,2018
60 Days
()30thApril,2019
2 Months
28th January, 2019
1 Month
i 23rd November, 2018 2 Months
(29th May, 2018
4 Months
I(i) 2nd February, 2019; (i) 3rd July, 2019; (iii) 3rd March, 2019;
(iv) 25th January, 2019; (u) 1st October, 2018.]
Retaining the Bill till Due Date
2. On 10th March, 2019, A draws on B a bill at 3 months for 7
20,000 which B accepts
immediately and returns to A. The bill is honoured on due date.
Pass necessary Journal entries in the books of both the
parties.
3.On1st January, 2019, sold goods to B for T 5,000 plus IGST@18%. A received 900 by cheque
A
from B and drew on him a bill for the balance amount
was duly accepted
payable 3 months after date. The bill
by B. A retained the bill till due date. On due date, the bill was
paid.
Pass Journal entries in the books of A and B. Also, show
necessary accounts in the books
of both the parties.

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Discounting of Bill from the Bank

hod sold goods to Darbara Singh for 1,000 on 1st January, 2019. He drew on the latter
f o r the amount payable 3 months after date. He discounted the bill with his bank tor
0 on 4th January, 2019. On maturity, the bill is duly met. Make the Journal entries in
e
books of Vinod and Darbara Singh.
 Double Entry Book Keeping-
5. On 1st X
for the January,
mount.
2019, X sold goods of 7 20,000 to and drew a bill on Ynt
Y at three
thr mons
entries in the Yaccepted the bill. The bill is met on maturity.
P'ass the necessary It
books fXand Y, if Xdiscounted the bill@12% p.n. from bank on
4thJa
.
[Hint: Discounting charges =
7 600.] Varunry.
Dinesh received from Shridhar an acceptanee for 7 3,000 on st
eptember, 201
months. Dinesh got the acceptance discounted at 9% p.a. from his
date, Shridhar bank. On the d
paid the required amount.
Give the Journal entries in the books of Dinesh and Shridhar.
B
ASells goods of
date for the amount
10,000 on 1st March, 2019 to B on
abill
credit. acceptsbill
yable three months after dato. A discounts the bil at 6%
the ta.
8ame
on

p.a. from
Dank on 4th April. On maturity, the bill is met by B. Pass the neces8ary Journal entries
the books of both the irn
parties.
Hint:. Discounting charges = 100.)
Endorsement of a Bill
8. A drew a bill of T 1,000 on B for 3 months which was duly accepted by the latter. A endorsed
the bill to Cin full payment of his own acceptance to C for a like amount. Cendorsedthe
bill to B.
Pass the Journal entries in the books of A, B and C.
9. A owed BR 8,000. He gave a bill for the same on 1st August, 2018 payable after 4 m onths
at the Bank of India, Chandni Chowk, Delhi. Immediately after receiving the bill
B endorsed it to C in payment of his debt. On 1st September, C discounted the bill at
12% p.a. The bill is met on due date.
Pass the necessary Journal entries in the books of A, B and C.
10. A sold goods to B for 7 20,000 plus CGST and SGST@ 9% each on credit of 3 months. Bpaid
AT 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed
in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.

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Sending the Bill to Bank for Collection

11. Singh draws a bill on Jagat for R1,000 payable 2 months after date. Immediately
Mohan
after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date
bank gets the payment. Make the entries in the books of all the parties.

Different Uses of Bills Receivable

12. Kdraws on Ya bill for 4,000 which was duly aceepted by Y. Ymeets the bill on its due date
Show what entries would be passed in the books of X under each of the following circumstanoes
(a) If X retains the bill till due date.
(6) If X discounts the same with his banker paying 100 for discount.
c) If X endorses the same to his ereditor Z in full settlement of his debt of 4,080.
(d) If X sends the bill to his banker for collection the next day. (Delhi 20IO)
Dishonour of a Bill
13.
Ram draws a bill for T 2,000 on Shyam on 15th September, 2018 for 3 months. On matur
Shyam failed to honour the bill.
Pass the
necessary Journal entries in the books of Ram and Shyam.
 0th March, 19, Naresh sold goods to
n
months for the Kai 16.37
harges. On lst July,
notingcharges. On
g
ant. On
maturity,
J u l " n Kailash
mod

the
to the
value of
chars in theJuly, Kailash cleared
ist
cleared bill was 1,250,
250, taking a
the
entries
books of both the hia his account dishonoured.
s 0shonoured. Naresh paid
bil
Make
January,2019,X
2019 sold by
parties to record thepaying ? 1,260.
?7 10 as as

goods
cheque and drew a bill on Y to Yfor 25,000 above
YB
. i l lw a s
at
d on the duethree months for
and transactions.
immediately received
date the from Y? 10,000
Ypays the due amountto X. )Pass the and Ypaid ? 150balance
to X. amount. Bill is accepted
Ypay July, 2019, A drew Journal entries
as
noting charges. Ten
by
in
with1st
on
16 On
lst
a bill
for T 4,850. On for 5,000 on B
nk for
the Bank
the books of hoth the days later,
maturity, B payable after 3 parties.
noting charges.failed to pay the amountmonths.
to
bank had t pay 50as A
of his discountedit
the

Pass the necessary Journal

Passt
entries in the books acceptance and
On15th June, 2019, Mohan sold
June, of A and
17 goods to Sohan B.
for
for the amount and discounted the valued at 7 2,000.
tned and
honoured
Mohan paid to thesame
and Moh with his
bank He drew a
bank the amount for 1,960. On the due bill at 3 months
Draft the Journal entries in the books of due plus the date the bill was
March, 2019, R accepted a Bill
+
all parties. noting charges of 10.
18.lfull s
of Exchange ofR
ptlement his dues. On the same S 20,000 from Spayable 3
of
1e for 7 5,000 in settlement day endorsed the Bill of months after date
all of Exchange@ 6% p.a. with hisof his debt to the latter. On 2nd Exchange to T together with
bank. On maturity the
Bill
March, 2019, T discounted the
Journalise the transactions in the books of R of
Exchange was dishonoured
and T.

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Practical Problems
19. On 1st January, 2019, A drew a bill on B for {
the bill and returned it to A. 10,000 payable after 3 months. B
After 10 days, A endorsed
due date, the bill was accepted
dishonoured and C paid 50 as the bill to his creditor C. On the
Record the transactions in the books noting charges.
of A, B and C.
20. Yowes X
4,000. On 1st
of his full claim. On the January, 2019, Yaccepts a 3 months bill for
same date, it was 3,900 in satisfaction
3,980. The bill is dishonoured on the due endorsed by X to Z in satisfaction of his claim of
date. Give the Journal
21. On 1st
January, 2019, A draws a bill on B for R 1,000 payable afterentries in the books of X.
after its acceptance, A sends the bill to 3 months.
Immediately
his bank for collection. On
dushonoured. Record the transactions in the Journals of the due date, the bill was
A and B.
22.
Abill for 7 1,000 is drawn by A on B and
Bank of India. Show what entries shouldaccepted by the latter payable at the New Delhi.
be passed in the books
of A under each of the
following circumstances:
) If A retained the bill till the due date and then realised
it on
maturity.
) If A discounted it with his bank for 950.
() A endorsed it to his creditor C in full settlement of his debt.
A Asent it to his bank for collection.
Also, give the necessary entries in each of the cases if the bill is dishonoured.
danuary, 2019 for goods sold, Ramesh drew Bill of Exchange on Mahesh for 4,000.
and returns to Kamesh. Ramesh then
M od of 3 months. Mahesh accepts it
Who in turn endorses it to Suresh on 1st February, 2019. The bill is then discounted by
`uresh on the same On the due date the lbill is dishonoured.
s date with his bank at 5% p.a.
Pass the necessar
sary Journal entries in the
books of all the four parties.
 Double Entry Book
24. A
purchases goods worth 7
satistaction. B purchases 6,200 from B and gives him his
acceptance
eping-CBSE
X
the balan by goods worth 7 for
10,000 from C and endorses the bill to 6,000 in
cheque. On maturity the bill is dishonoured, noting charges full
him. payin
Give the Journal amounted to
entries in the books of A, B and C.
25. X sells goods
for 7 40,000 to Y on
1st 2019 and on the same day
for the amount. Y January,it and returns it to X, who
Y at three months draws a bill
accepts discounted it onon
4th January, 2019
with his bank at 6% D.a. The acceptance is dishonoureda1scounted
on the
i
and the
noting charges were paid by bank being 200. due d te
On 4th
April, 2019, Y accepts a new bill at three months for the amount then
X together with interest at 12% p.a. due
Make Journal entries to record these transactions in the books ot A.
(KVS 2016, Modified)

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26. Ram owes 7 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 discounted at his bank @ 6% p.a. On the due date,
the bill was dishonoured, noting charges 20. Ram agreed to pay 520 immediately and
accept another bill for the remaining amount for 3 months together with interestat 9% pa.
This bill was met on the due date. Give the Journal entries in the books of both the parties.
27. On 15th June, 2019, X sold to Y goods to the value of 15,000 drawing upon the latter two
bills, one for 7 10,000 payable 2 months after date and other for 5,00 payable 3 months
after date. X discounted the first bill with his bank at 6% p.a. and endorsed the second bill n
favour of his creditor, 2. The first bill was met on maturity but the second was dishonoured
Z paid 50 as noting charges. On 1st October, Y cleared his account to Xby paying 5,100
which included 50 as interest.
Record the necessary Journal entries in the books of both X and Y.
28. X draws a bill on Y for T 2,000 on 1st January, 2019. Y accepts the same and returns it to
X. The bill was drawn by X in full settlement of a debt owing by Yamounted to R2.050
X discounts the bill on the same date with the Central Bank of India for 1,980. On maturity
the bill was duly met by Y.
Give the entries in the books of X and Y.
Suppose the bill is dishonoured, what entries will be passed?

Renewal of Bill and Retiring a Bill under Rebate

29. On 1st June, 2019, A sold goods to B for 7 250. B gave to A his acceptance payable 1 montn
after date. Before requests A to renew it, which A does adding7 10 to the new bl
maturity B
for interest.
Make the necessary Journal entries to record these transactions in the books of both A and B
30. A sold goods to B on 1st September, 2018 for 7 16,000. B immediately accepted a 3 monts
bill. On the due date, B requested that the bill be renewed fora further period of 2 monts
A agreed provided interest at 9% p.a. was paid immediately in cash. To this B was agreeable
The second bill was met on the due date. Give the Journal entries in the books of A.

31. 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. accepted the draft on presentation. wn
the bill was about to mature. AB & Co. expressed their inability to meet it, and offerea
 16
e r e h a n teC o .
pay 200 in cnsh and to
acrept freah bill foor the
a
for 3 mor anthe. Merchant & Co, ngreetd halanee plus intotest
6% p.a.
wwas duly met. to the propraal and ill
maturity,
the
bill
wa renerwed
the
in the
in booka of both the
the
entries
parties to rocord the ahrve
M a k e

400. A aecepted
A accepted a Bill of tranaartrons
A o w e d

discounted for
380 Exchange at A
monthe for thia amunt whirh
B
the
necessary Journal entries in the books of A and
Jou
i f thia bill
Give

dishonoured
on the due dat is

(a)a

maturity and
at
met
)b)
()retired
rebate at
d under reba
under 6% p.a. 2
months before its
maturity
ells good to Bhola for 10,000 and draws upon him a bill for
. Amarsells
ds
m o n t h s a f t e r odate. The bill is
the amount payabie
accepted by Bhola. Amar discounts the
3montnt
discount of
150 inclusive of all
of F 150
charges. Bhola faila to
hill with his hankers
at dis
a
off his banker and his expenses amounting to? meet this mli on
pay
100. Ehola gives a fresh bill
maturity
for 10,250, which he
A m a

nonths' date to.Amar

met at
Show the necessary Journal entries in Amar's books.
maturity.

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Miscellaneous Questions

34 Give the Journal entries for the following:

a) B's acceptance to us for * 1,000 due this day, renewed at his request for 3 months with
interest @ 6% p.a.
6) Ourbill to Chandra for 5,000 renewed for 2 months with interest @ 6% p.a.
(c) Bs acceptance of 3,000 is discharged on his paying us cash 1,000 and accepting a
fresh bill for the balance with interestF 100.
35. Leena sold goods to Meena on 1st March, 2009 for 68,000 and drew two Bills of Exchange
ofthe equal amount upon Meena payable after three months. Leena immediately discounted
the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid
55 as noting charges.
The second bill was retired on 4th May, 2009 under a rebate of6% p.a. with mutual agreement.
dournalise the above in the books of Leena and Meena. KVS 2010
6. How will you record the following transactions in the books of Kapadia?
a) A bill received from Dalpat for 1,000 has to be renewed, Dalpat agrees to pay ? 20

as interest.
0 Swamy's bill for 800 endorsed in favour of Ghosh dishonoured, Ghosh pays ? 10 as noting
bill for 3 mmonths
300 immediately and agrees to accept
a new
1arges. Swamytogether
Une balance pays with interest at 6% p.a. Ghosh's Account is settled by cheque.
37. Y on the same date acrepted
a bill

purchased goo 1st June, 2011 from X and

oods for T 6,000 on
the bill to 2. On maturity.
the bill w a s
dishalter three months. 3 days later, Xendorsed Two days atter the
to ? 50 as noting charges.
dishon tor non-payment and Z had pay him to draw a second bill tor the balance
plus O bill, Ypaid 2,000 to X and requested
plus 90 for after two months. X accepted
the proposal and
the amount of interest, ayable Pass Journal
draw was accepted by
o n maturity.
Yand w a s duly met (MSE
on Y, which Chundigurh 2013)
entries
t h e above transactions in the books of X.
 B for 7 1,00,000 roceived 25,000 in cash and
38. On 1st January, 2008, A sold goods to dre.
each. Both bills were d l .
two bills, first 45,000 and second for 7 30.000 of two months
account of 7 45,000
accepted by B. First bill was endorsed to C in settlement of his and

second bill was discounted from the bank at the rate of 12% p.a. On the due date of thess.

bills, both bills were dishonoured. C has paid7 100 and bank has paid
< BO as
noting chargez
Pass Journal entries in the books of A, B and C. (MSE Chandigarh 2011)
39. Amar sells goods to Bhola for 7 10,000 plus CGST and SGST 9 % each. He receives the

GST amount in cash and draws upon Bhola a bill for the balance amount payable
3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his hank
at a discount of 7 150 inclusive of all charges. Bhola fails to meet this bill on
maturity.
Amar pays off his bank and his expenses amounting to 100. Bhola gives a fresh bill of
2 months' date to Amar for 7 10,250, which he meets at maturity. Show necessary Journal
entries in Amar's books.