GANDHE’S COMMERCE CLASSES (MANEWADA ROAD)
Q.6 Neha sold good to Anita worth Rs.1,36,000, Anita paid
BILLS OF EXCHANGE
Problems for Homework
(Honour of bill under different circumstances)
Q.1 Akshay drew a bill on Dilip for Rs.50,000 on 23rd
December, 2019, for 3 months. Dilip accepted the same and
returned it to Akshay. On the due date the bill was duly
honoured by Dilip.
Give journal entries in the books of Akshay and Dilip
under each to the following cases:
A) If Akshay retained the bill till maturity.
B) If Akshay discounted the bill with the bank at 6% p.a. on
the same day.
C) If Akshay sent the bill to bank for collection on 23rd
December, 2019.
D) If Akshay endorsed the bill to his creditor Viren.
(Dishonour of bill under different circumstances)
Q.2 Ganesh sold goods of Rs.80,000 to Harshal on 1st May
2019. For this purpose, Ganesh drew a bill on Harshal for 2
months. Harshal accepted the same and returned it to
Ganesh. On maturity the bill was dishonoured by Harshal.
Give journal entries in the books of Ganesh and Harshal
under the following circumstances:
A) If Ganesh retained the bill till maturity.
B) If Ganesh discounted the bill with the bank at 12% p.a.
on 1st June, 2019.
C) If Ganesh sent the bill to bank for collection on 15th May,
2019.
D) If Ganesh endorsed the bill to his creditor Arvind.
Q.3 Kartik owes Rohit Rs.1,48,000 on 1st Dec. 2019, Kartik
accepts a three months bill for Rs.1,42,000 in full
settlement. On the due date the bill is dishonoured by Kartik
and Rohit paid noting chargesRs.2,000. Give journal
entries in the book of Kartik and Rohit. Also prepare
Kartik A/c in the books of Rohit and Rohit A/c in the
books of Kartik.
Q.4 Siddhi receives Madhu’s acceptance for Rs.60, 000.
Before due date of the bill Madhu approaches Siddhi with a
request to accept Rs.20,000 and draw a fresh bill on her for
the balance for 3 months including interest at 8% p.a. Siddhi
agrees and draws a fresh bill which was duly accepted by
Madhu .On the due date Madhu meets the bill.
Give journal entries in the books of Siddhi and prepare
Siddhi’s account in the books of Madhu.
Q.5 Ayush draws a bill on Ashwin for Rs.96,000 on 6th Oct.
2019 for 3 months. Ashwin accepts the bill on the same
date. Ayush sends the bill to Bank for collection on 20th Oct.
2019. Before due date Ashwin finds himself unable to make
the payment of bill and request Ayush to renew it. Ayush
agrees to the proposal on condition that Ashwin should pay
Rs.40,000 in cash along with interest Rs.3,200 and accept a
new bill for 2 months for the balance. Ashwin retired the bill
on 12th Jan. 2020 by paying Rs.54,000.Give journal
entries in the books of Ayush.
COMPILED BY - ASHWIN DHALE AND NISHANT HAMDAPURE
Rs.40,000 immediately and accepted the bill for the balance
Rs.96,000 at 2 months. Neha discounted the bill with Bank
of Baroda after one month at 15% p. a. The bill was
dishonoured on the due date and Anita requested Neha to
accept Rs.16,000 and interest in cash on remaining amount
at 11% p.a. for 3 months. Neha agreed and for the balance
Anita accepted a new bill at 3 months. But Anita became
insolvent and only 40% could be recovered her estate.
Prepare Journal of Neha.
Q.7 On 15th September, 2019 Kuldeep purchased goods
from Kishor for Rs.1,54,000 and Kuldeep gave his
acceptance after sight for 60 days on18th September, 2019
for the amount due. Kishor deposited the bill into bank for
collection on the same day. Kuldeep honoured his
acceptance on the due date. Bank charged Rs.600 as bank
charges. Give journal entries in the books of Kishor and
Kuldeep.
Q.8 Shivani owes Rs.1,04,000 to Amit. Amit draws a bill for
Rs.84,000 on Shivani for 3 months period and received the
balance by a crossed cheque. The bill was duly accepted
and returned to Amit. On the same day Amit endorsed
Shivani acceptance to Vilas. On the due date Vilas informed
Amit that Shivani dishonoured her acceptance and noting
charges Rs.1,120 were paid. Amit then drew a new bill for 1
month on Shivani including noting charges and interest
Rs.2,600. On the due date Shivani honoured her
acceptance by cheque. Give journal entries in the books
of Amit and prepare Amit account in the books of
Shivani.
Q.9 On 3rd July, 2019 Ravindra drew a bill of Rs.24, 000 for
90 days after date on Dhiraj which was accepted by Dhiraj.
On 9th July, 2019 Ravindra endorsed the bill to Harsh in full
settlement of his account Rs.25,500. On the same day
Harsh discounted the bill with bank for Rs.23, 500.
Government declared emergency holiday on the due date
and as per the provisions of Negotiable Instruments Act the
bill was duly met by Dhiraj. Give journal entries in the
books of Ravindra, Dhiraj and Harsh.
Q.10 On 18th June, 2019 Rakesh sold goods on credit for
Rs.80, 000 to Nilesh. Rakesh draws a bill for the amount
due for 3 months on the same day. Nilesh 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 Nilesh dishonoured his acceptance and bank paid
noting charges Rs.700. Nilesh then requested Rakesh to
renew the bill. Rakesh agreed on the condition that Nilesh
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. These arrangements were carried
through. But before the due date Nilesh was declared
insolvent. Rakesh received 60 paisa in a rupee as first and
final dividend from the private estate of Nilesh on 23rd Dec.
2019.Give journal entries in the books of Nilesh.
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 GANDHE’S COMMERCE CLASSES (MANEWADA ROAD)
Q.11 Nitin draws a bill for Rs.1,00,000 on Abhijit for 3
months on 17th July, 2019. Nitin discounts the bill with his
Bankers at 12.5% p.a. on the same day. On the due date of
bill Abhijit requested Nitin to accept a crossed cheque of
Rs.23,200 including Rs.7,200 for interest and to draw bill for
the balance for 3 months. Nitin agrees to this proposal.
Before due date of new bill Abhijit retires the bill for
Rs.81,000 one month before the due date. Pass necessary
journal entries in the books of Nitin.
Q.12 Sumit sold goods of Rs.1,80,000 to Gopal at 10%
Trade discount. Gopal paid 1/3rd of the amount immediately
at a cash discount of Rs.4,000 and for the balance accepted
a bill for 3 months. Sumit endorsed the bill to Arun on the
same day in full settlement of his account Rs.1,10,000. On
the due date the bill was dishonoured by Gopal and noting
charges paid by Arun Rs.1,800. Govind requested Sumit to
renew the bill. Sumit agreed on condition that Gopal should
pay Rs.21,000 immediately along with noting charges and
for the balance Gopal should accept a new bill for 2 months
along with interest Rs.6,000. Gopal agreed to these
contrition and these arrangements were carried through.
Sumit paid Arun balance due to him. On the due date of the
new bill Gopal dishonoured the bill.Give journal entries in
the books of Sumit and prepare Sumit’s account in the
books of Gopal.
(Problems on single Drawer and multiple Drawees)
Q.13 Give journal entries the books of Bharat.
1. Sonali’s acceptance for 3 months of Rs.80,000 was
discounted with Bank of India at Rs.79,000.
2. Bharti’s acceptance of Rs.57,600 retired one month
before the due date at rebate of .12% p.a.
3. Roshni’s acceptance of Rs.34,000 is endorsed in favour
of Gunjan in full settlement of her account Rs.34,600.
4. Sold goods to Vinay Rs.80,000 at 8% Trade Discount.
Received half the amount immediately on which 10% Cash
Discount was allowed. For the balance a bill was drawn on
Vinay which was accepted by her.
Q.14 Jouranlise the following transactions in the books
of Mayank.
1. Vishal renewed his acceptance to Nitish for Rs.44, 000 by
paying Rs.24, 000 in cash and accepting a fresh bill for the
balance with interest @12% p.a. for 2 months.
2. Honoured our acceptance to Akash of Rs.35,500 by
endorsing Harshal’s acceptance of Rs.35,500 in full
settlement.
3. Pawan who accepted Mayank’s bill for Rs.42, 000 was
declared insolvent and only 25% of the amount could be
recovered from his estate.
4. Bank informed us that Padmaja’s acceptance for Rs.64,
000 sent to bank for collection had been dishonoured and
noting charges paid were Rs.550.
COMPILED BY - ASHWIN DHALE AND NISHANT HAMDAPURE
Q.15 Journalise the following transactions in the books
of Arvind.
a) Bank informed that Sanket’s acceptance for Rs.31,000
sent to bank for collection has been honoured and bank
charges debited Rs.300.
b) Ashlesha informs Arvind that Nikita’s acceptance for
Rs.46,000 endorsed to Ashlesha, has been dishonoured.
Noting charges paid by Ashlesha amounted to Rs.660.
c) Bank informed that Jay’s acceptance of Rs.64,800 which
was discounted with bank was dishonoured, bank paid
Noting charges Rs.460.
d) Vikrant’s acceptance of Rs.39, 600 was honoured which
was deposited with bank for collection.
Q.16 Journalise the following transactions of Abhay as
on 24th October, 2019.
a) Renewed Sanjay’s acceptance of Rs.36,000 with interest
of Rs.760 for 2 months.
b) Sahil informs Abhay that Manglal’s acceptance of
Rs.26,000 endorsed to Shailesh was dishonoured and
noting charges paid Rs.390.
c) Accepted a bill of Rs.32,800 at 2 months drawn on
Chandu and Sons for the amount due to them38,000 and
balance paid in cash.
d) Bank informed that Vinita’s acceptance of Rs.28,000
which was discounted was dishonoured and bank paid
noting charges Rs.210. Renewed bill on Vinita’s request for
2 months with interest Rs.590.
e) Nivedita retired her acceptance to Arvind of Rs.27,100 by
paying cash Rs.26,000
Q.17 Journalise the following transactions in the books
of Aparna.
a) Nishant’s acceptance for 60 days Rs.25,500 deposited
into bank for collection.
b) Aparna sold goods to Kartiki for Rs.40,000 and received
her acceptance for the same amount for 2 months. The bill
was endorsed to Surekha.
c) Received 30% of the amount due from the private estate
of Meena who was declared insolvent. Meena had
dishonoured her acceptance of Rs.47,700 and noting
charges paid were Rs.300.
d) Aparna renews her acceptance of Rs.72,000 to Anurupa
by paying cheque of Rs.12,000 and accepting a new bill for
2 months for balance along with interest @ 14.5% p. a.
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