PIYUSH TUTORIALS

Bills Of Exchange
Q1.

Ramchandra sold goods to Raman worth Rs. 8,000 and Raman accepted the bill for Rs. 8,000 at 2
months drawn by Ramchandra. Ramchandra discounted the bill with his bank at 6% p.a. On due date
the bill was dishonoured and Raman requested Ramchandra to accept Rs. 4,000 immediately and draw
up on him a new bill for the remaining amount at 3 months together with interest at 10% p.a.
Ramchandra agreed. The second bill was duly honoured.

Give Journal entries in the books of Ramchandra.

Q2.

Premlal sold goods to Sunderlal worth Rs. 10,000 and Sunderlal accepted the bill Rs. 10,000 at two
months drawn by Premlal. Premlal discounted the bill with his bank at 6% p.a. On due date, the bill
was dishonoured and sunderlal requested Premlal to accept Rs. 4,000 and also interest in cash on
remaining amount at 10% p.a. for three months. Premlal agreed and for the balance Sunderlal
accepted a new bill at 3 months. This bill was duly honoured on due date.

Give Journal entries in the books of Premlal.

Q3.

Archana purchased goods from Babita on credit for Rs. 10,000 and accepted a bill drawn by Babita for
four months. Babita discounted the bill with her bank for Rs. 9,600. Before the due date Archana
approached Babita with a request to renew the bill. Babita agreed but with the condition that Archana
should pay Rs. 6,000 with interest of Rs. 120 and accepted a new bill for the balance. The arrangements
were duly carried out. New bill is met on due date.

Pass Journal entries in the books of Babita.

Q4.

Anjali of Nagpur sold goods worth Rs. 25,000 to Rupali of Amaravati. On next day Rupali paid Rs. 10,000
in cash and accepted two months bill for the balance drawn by Anjali. Anjali discounted the bill at 12%
p.a. with her bank. Before due date Rupali finds herself unable to make payment of the bill; and
requests Anjali to renew it. Anjali accepts the proposal on the condition that Rupali should pay Rs.
5,000 in cash and accept new bill for one month along with interest Rs. 200 for the balance. These
arrangements were carried through. The new bill was met on due date.

Give Journal Entries in the books of Anjali.

Q5.

Anil sold goods to Ravindra for Rs. 6,000. Ravindra accepted Anil’s bill for Rs. 6,000 payable after 3
months. After a month, Anil discounted the bill with his bank at 10% p.a. On the due date Ravindra
dishonoured his acceptance. Ravindra paid Rs. 3,000 to Anil and accepted a fresh bill for 3 months for
the balance including interest @ 8% p.a. Anil sent the bill to bank for collection. On due date Ravindra
honoured the bill.

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 PIYUSH TUTORIALS
Bills Of Exchange
Pass the Journal entries in the books of Anil.

Q6.

Rupali accepted a bill of Rs. 2,000 drawn by Deepali at 3 months. Deepali got the bill discounted with
her bank for Rs. 1,900. Before the due date Rupali approached Deepali for renewal of the bill. Deepali
agreed on the condition that Rs. 1,000 be paid immediately together with interest on the remaining
amount at 6% p.a. for 3 months and for the balance Rupali should accept a new bill for 3 months.
These arrangements were carried through.

But afterwards Rupali became insolvent and only 40% of the amount could be recovered from her
estate.

Give Journal entries in the books of Deepali.

Q7.

Mahendra sold goods to Ravindra for Rs. 6,000. Ravindra accepted Mahendra’s bill for Rs . 6,000
payable after three months. After a month Mahendra discounted the bill with his bank at 10% p.a. On
due date Ravindra dishonoured his acceptance. Ravindra paid Rs. 3,000 to Mahendra and accepted a
fresh bill for 3 months for the balance including interest at 8% p.a. Before maturity of the bill Ravindra
became insolvent and 50 paise in a Rupee were received from Ravindra as first and final dividend from
his estate.

Pass Journal entries in the books of Mahendra.

Q8.

Jaya sold goods on credit to Prada for Rs. 10,000 at 10% trade discount on 10 th July,2020. Jaya draws
bill on Prada for 3 months for Rs. 8,000; and on the same was accepted by Prada. On due date the bill
was dishonoured, noting charges amounted to Rs. 40 paid by Jaya.

Prada paid half the amount of bill and full amount of noting charges and accepted a new bill for the
balance including interest Rs. 200. These arrangements were carried through. Prada became insolvent
and only 50 paise in a rupee could be recovered from her private estate.

Give Journal Entries in the books of Jaya.

Q9.

On 18th june , 2019 Rohan Sold goods on credit for Rs. 40,000 to Navin. Rohan draws a bill for the
amount due for 3 months on the same day. Navin accepted the bill and returned it to Rohan . On 19th
June, 2019 Rohan discounted the bill with the bank at 15 %p.a.

On the due date Navin dishonoured his acceptance and bank paid noting charges Rs. 350. Navin then
requested Rohan to renew the bill. Rohan agreed on the condition that Navin should pay interest on
balance at 12% p.a. plus noting charges by cheque and should accept a new bill for the balance for 2
months.

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 PIYUSH TUTORIALS
Bills Of Exchange
These arrangements were carried through. But before the due date Navin was declared insolvent.
Rohan received 60 paise in a rupee as first and final dividend from the private estate of Navin on 23 rd
Dec. 2019.

Give journal entries in the books of Navin.

Kale sold goods to Gore for Rs. 3,000. Kale drew a bill of Rs. 3,000 on Gore for 3 months. Gore accepted
it and returned to Kale. Kale sent the bill to bank for collection. But before due date Gore approached
Kale with request for renewal of bill. Kale agreed his request with condition that Gore should pay Rs.
800 in cash and should accept a fresh bill for balance including interest Rs. 60. The arrangements were
carried through. The new bill was retired for Rs. 2,250.

Pass journal entries in the books of Kale.

Q11.

Amol draws a bill on Atul for Rs. 24,000 on 6 th Oct, 2019 for 3 months. Atul accepts the bill on the
same date. Amol sends the bill to Bank for collection on 20th Oct. 2019. Before Due date Atul finds
himself unable to make the payment of bill and request Amol to renew it. Amol agrees to the
proposal on condition that Atul should pay Rs.10,000 in cash along with interest Rs. 800 and accept
bill for 2months for the balance. Atul retired the bill on 12 th Jan. 2020 by paying Rs. 13,500.

Give Journal entries in the books of Amol.

Q12.

Vikrant sold goods to the value of Rs. 20,000 to Vishwajeet. Vishwajeet accepted the bill for Rs. 20,000
at three months. Vikrant discounted the bill at 15% p.a. with his bank. At maturity the bill was returned
dishonoured with Rs. 250 as noting charges. Vishwajeet paid Rs. 10,000 and amount of noting charges
and gave Vikrant another bill at three months the balance with interest at 12% p.a. But before maturity
Vishwajeet became insolvent and he paid 75 paise in a rupee from his estate.

Pass journal entries in the books of Vishwajeet.

Q13.

Bhagwan sold goods to Deo for Rs. 3,000. On the same date, Deo accepted a bill at two months which
Bhagwan endorses to Ishwar.

On the due date of the bill, Ishwar informed Bhagwan that the bill was dishonoured and Rs. 20 was
paid as noting charges.

Bhagwan then drew a new bill on Deo for the amount due including noting charges and interest Rs.
130. Before the due date of the second bill, Deo became bankrupt and only 20 paise in the rupee was
received from his estate as first and final dividend.

Give Journal entries in books of Deo.

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 PIYUSH TUTORIALS
Bills Of Exchange
Q14.

On 15th September, 2019 Kunal purchased goods from Kishorilal for Rs. 38,000 and Kunal gave his
acceptance after sight for 60 days on 18th September, 2019 for the amount due. Kishorilal deposited
the bill into the bank for collection on the same day. Kunal honoured this acceptance on the due
date. Bank charged Rs. 150 as bank charges.

Give Journal entries in the books of Kishorilal and Kunal.

Q15.

On 1st January 1982 Shri Jameersheth sold goods to Shri Nanchand for Rs. 80,000. On the same day
Shri Jameersheth drew a bill on Shri Nanchad for the same amount at 3 months. Shri Nanchand
accepted the bill and returned the same to Shri Jameersheth.

On 4th January 1982 Shri Jameersheth discounted the bill with his bankers at 10% p.a.

On the due date bank informed that the bill was dishonoured and Shri Nanchand requested Shri
Jameersheth to accept Rs. 40,000 immediately and draw up on him a new bill for the remaining
amount for 2 months together with interest at 12% p.a. Shri Jameersheth agreed.

The second bill was duly honoured.

Pass necessary Journal entries in the books of Shri Jameersheth and show Shri Jameersheth’s A/c
in the books of Shri Nanchand .

Q16.

Sagar owes Sindhu Rs. 8,000. Sagar accepted a bill for 3 months drawn by Sindhu for Rs. 8,000. Sindhu
discounted the bill with the bank at Rs. 7,800. On the due date the bill was dishonoured. Noting
charges amounted to Rs. 20. Sagar paid half the amount of the bill and full amount of noting charges
and accepted a bill for the balance including interest Rs. 100.

Pass Journal entries and show the Account of Sagar in the books of Sindhu.

Q17.

Sunil draws a bill on Anil for Rs. 7,000 at 3 months. Anil accepted the bill and returned it to Sunil. The
bill is discounted by Sunil for Rs. 6,950 with his bank. On maturity Anil finds himself unable to make
payment of the bill and requests Sunil to renew it. Sunil accepted the request and drew a new bill at
one month for Rs. 7,050 including interest. Sunil deposits this new bill with his bank for collection on
the due date. Anil honours the bill.

Pass necessary Journal entries in the books of Sunil and open Sunil’s A/c in the ledger of Anil.

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 PIYUSH TUTORIALS
Bills Of Exchange
Q18.

Akbar owed to Babar Rs. 6,000. Akbar accepted the bill drawn by Babar for the amount at 4 months.
Babar discounted the bill with his bank for Rs. 5,850. Before the due date Akabr approached Babar
with request for renewal of the bill. Babar agreed on the condition that Rs. 4,000 to be paid
immediately in cash together with interest on remaining amount at 12% p.a. for 3 months and for the
balance Akbar should accept new bill at 3 months. These arrangements were carried through. Babar
endorsed the new bill to Kadar. Akbar met the bill on due date.

Record the above transactions in the journal of Akbar. Prepare Akbar A/c in the ledger of Babar.

Q19.

Shalini owes Rs. 26,000 to Anand. Anand draws a bill for Rs. 21,000 on Shalini for 3 months period
and received the balance by a crossed cheque. The bill was duly accepted and returned to Anan d.
On the same day Anand endorsed Shalini’s acceptance to Vikram. On the due date Vikram informed
Anand that Shalini dishonoured her acceptance and noting charges Rs. 280 were paid. Anand then
drew a new bill for 1 month on Shalini including noting charges and interest Rs. 650. On the due date
Shalini honoured her acceptance by cheque.

Give journal entries in the books of Anand and prepare Anand’s account in the books of Shalini.

Q20.

Sagar drawn an after sight bill on 21st Nov. 2019 for Rs. 21,000 at 3 months on Prasad. The bill is
discounted by Sagar at 8% p.a. with his bank. On maturity Prasad finds himself unable to make
payment of the bill and requests Sagar to renew it. Sagar accepts the request and draws a new bill ot
one month for Rs. 21,750 including interest which was duly accepted by Prasad. Sagar deposits the
bill into bank for the collection. Prasad honours the bill on the due date and bank debited Rs. 250 as
Bank charges.

Pass necessary Journal Entries in the books of Sagar and prepare Sagar’s account in the books of
Prasad.

Q21.

Journalise the following transaction in the books of Abhishek :-

a) Siddhant informs Abhishek that Vineet’s acceptance for Rs. 23,000 endorsed to Siddhant has
been dishonoured. Noting Charges amounted to Rs. 430.
b) Kajal renews her acceptance to Abhishek for Rs. 39,000 by paying 3,000 in cash and accepting
a fresh bill for the balance along with interest at 11.5 % p.a. for 3 months.
c) Radhika retired her acceptance to Abhishek for Rs. 23,000 by paying Rs. 22,250 by cheque.
d) Abhishek sent a bill of Subodh for Rs. 9,000 to bank for collection. Bank informed that the bill
has been dishonoured by Subodh.

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 PIYUSH TUTORIALS
Bills Of Exchange
Q22.

Journalise the following transactions in the books of Aaditya.

a) Bank informed that Surya’s acceptance for Rs. 15,750 sent to bank for collection has been
honoured and bank charges debited Rs. 150.
b) Asha informs Aditya that Nisha’s acceptance for Rs. 23,000 endorsed to Asha, has been
dishonoured. Noting charges paid by Asha amounted to Rs. 330.
c) Bank informed that Jaydeep’s acceptance of Rs. 32,400 which was discounted with bank was
dishonoured, bank paid Noting charges Rs. 460.
d) Shrikant’s acceptance of Rs. 19,800 was honoured which was deposited with bank for
collection.
Q23.

Journalise the following transactions in the books of Apoorva.

a) Prashant’s acceptance for 60 days Rs. 12,750 deposited into bank for collection.
b) Apoorva sold goods to Kirti for Rs. 20,000 and received her acceptance for the same amount
for 2 months. The bill was endorsed to Rekha.
c) Received 30% of the amount due from the private estate of Mukta who was declared
insolvent. Mukta had dishonoured her acceptance of Rs. 23,850 and noting charges paid were
Rs. 150
d) Apoorva renews her acceptance of 36,000 to Anuradha by paying cheque of 6,000 and
accepting a new bill for 2months for balance along with interest @ 14.5 % p.a.

Q24.

Journalise the following transactions of Arvind as on 24 th Otober, 2019.

a) Renewed Sainath’s acceptance of Rs. 18,000 with interest of Rs. 380 for 2 months.
b) Sahil informs Arvind that Meenal’s acceptance of Rs. 13,000 endorsed to Sahil was
dishonoured and noting charges paid Rs. 195.
c) Accepted a bill of Rs. 16,400 at 2months drawn by Chand and Sons for the amount due to them
Rs. 19,000 and balance paid in cash.
d) Bank informed that Vidya’s acceptance of Rs. 14,000 which was discounted was dishonoured
and bank paid noting charges Rs. 105. Renewed bill on Vidya’s request for 2 months with
interest Rs. 295.
e) Nandita retired her acceptance to Arvind of Rs. 13,550 by paying cash Rs. 13,000.

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 PIYUSH TUTORIALS
Bills Of Exchange
Q 25.

Give journal entries the books of Bipin.

1. Sonal’s acceptance for 3 months of Rs. 20,000 was discounted with Bank of India at Rs. 19,750.
2. Brinda’s acceptance of Rs. 14,400 retired one month before the due date at rebate of 12% p.a.
3. Rekha’s acceptance of Rs. 8,500 is endorsed in favour of Gayatri in full settlement of her
account Rs. 8,650.
4. Sold goods to Vinaya Rs. 20,000 at 8% Trade Discount. Received half the amount immediately
on which 10% Cash Discount was allowed. For the balance a bill was drawn on Vinaya which
was accepted by her.

Q26.

Journalise the following transactions in the books of Mayur.

1. Vishwas renewed his acceptance to Nitesh for Rs. 22,000 by paying Rs. 12,000 in cash and
accepting a fresh bill for the balance with interest @ 12% p.a. for 2 months.
2. Honoured our acceptance to Ashwin of Rs. 17,750 by endorsing Hari’s acceptance of Rs. 17,500
in full settlement.
3. Prakash who accepted Mayur’s bill for Rs. 21,000 was declared insolvent and only 25% of the
amount could be recovered from his estate.
4. Bank informed us that Shailaja’s acceptance for Rs. 32,000 sent to bank for collection had been
dishonoured and noting charges paid were Rs. 275.

Q 27.

Journalise the following transactions in the books of Narendra :-

a) Narendra retires his acceptance to Upendra by paying Rs. 4,000 in cash and endorsing a bill
accepted by Ramalal for Rs. 5,000.
b) Vikram’s acceptance to Narendra Rs. 6,000 retired one month before the due date at rebate
of 12% p.a.
c) Dilip renew his acceptance to Narendra for Rs. 12,000 by paying Rs. 4,000 in cash and accepting
a fresh bill for the balance plus interest at 12% p.a. for 3 months.
d) Bank informed Narendra that, Kartik’s acceptance for Rs. 13,000 to Narendra, discounted with
the bank was dishonoured and Noting charges paid by bank Rs. 140.

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 PIYUSH TUTORIALS
Bills Of Exchange
Q28.

Journalise the following transactions in the books of Bharti :-

a) Bank informed that Amit’s acceptance for Rs. 15,750 sent to bank for collection was honoured
and bank charges debited were Rs. 150.
b) Nitin renewed his acceptance for Rs. 22,200 by paying Rs. 2,200 in cash along with interest on
balance amount at 10% and accepted a fresh bill for the balance for 3 months.
c) Dhanshri who had accepted Bharti’s bill for Rs. 17,500 was declared insolvent and only 40% of
the amount due could be recovered from his estate.
d) Discharged our acceptance to Savita for Rs. 9,450 by endorsing Pravin’s acceptance to us Rs.
9,000.

Q29.

Journalise the following transactions in the books of Subodh :-

a) Endorsed Sonali’s acceptance at 2 months for Rs. 6,000 in favour of Urmila and paid cash Rs.
3,500 in full settlement of her account Rs. 10,000.
b) Discounted 2 months acceptance of Surya for Rs. 7,800 with bank at 10 %p.a.
c) Bank informed that Anuradha’s acceptance of Rs. 4,800 which was discounted was
dishonoured and bank paid Noting Charges Rs. 125.
d) Pooja Honoured her acceptance of Rs. 16,400 which was deposited into bank for collection.

Q30.

Journalise the following transactions in the books of Mrunal :-

a) Bank Informed that Aishwarya’s acceptance of Rs. 24,000 which was discounted had been
dishonoured and bank paid Noting Charges Rs. 220. Bill was renewed at the request of
Aishwarya for 2 months with interest of Rs. 480.
b) Received Rs. 4,630 from private estate of Ankur who was declared insolvent against bill
accepted by him for Rs. 6,000.
c) Accpeted a bill of Rs. 15,000 at 3months drawn by Anushka for the amount due to her Rs.
20,000 and balance paid by cheque.
d) Dishonoured our acceptance to Vivek Rs. 27,000 and Noting Charges paid by Vivek Rs. 700.
Q31.

On 3rd July, 2019 Ravi drew a bill of Rs. 12,000 for 90 days after due date on Dhruv which was
accepted by Dhruv. On 9th July,2019 Ravi endorsed the bill to Harish in full settlement of his account
Rs. 12,750. On the same day Harish discounted the bill with bank for Rs. 11,750.

Government declared emergency holiday on the due date and as per the provisions of Negotiable
Intruments Act the bill was duly met by Dhruv.

Give journal entries in the books of Ravi, Dhruv and Harish.

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 PIYUSH TUTORIALS
Bills Of Exchange
Q32.

Pankay purchased goods of Rs. 20,000 from Omprakash on credit on 15 th April 2019. Omprakash
draws After Sight bill for the amount due on Pankaj for 3 months which was accepted by Pankaj on
18th April , 2019. On 20th April, 2019 Omprakash endorsed the bill to his creditor Jagdish in full
settlement of his amount Rs. 21,000. On the due date the bill was dishonoured by Pankaj.

Give Journal Entries in the Books of Omprakash, Pankaj, and Jagdish.

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