Subject: Principles of Accounting Part: I Board: Punjab Board

Chapter No.: 6 Chapter Name: Bills of Exchange

Topic: Bills of Exchange Sub Topic: Bill retained and Honored
Board: Gujranwala Year: 2022 Group:

Long Question:
Q. On 1st June 2012, Kashif sold goods to Shakeel for Rs.7,000 on credit. Kashif drew a bill on Shakeel for
three months which was accepted by the Shakeel and returned it Kashif. On due date Shakeel met his
acceptance.
Required: Show entries in the books of Kashif and Shakeel.
Answer:
Kashif’s Journal
L Debit Credit
Date Particulars
F (Rs.) (Rs.)

2012 Shakeel Account --------------------------------------Dr. 7,000

June. 1 Sales Account 7,000

(Goods sold on credit)

Jan. 1 Bill receivable Account ----------------------------- Dr. 7,000

Shakeel Account 7,000

(Acceptance received for 3 months)

Sep. 4 Cash Account -----------------------------------------Dr. 7,000

Bill receivable Account
(Bill honored) 7,000

Shakeel’s Journal
L Debit Credit
Date Particulars
F (Rs.) (Rs.)

2012 Purchases Account -------------------------------------- 7,000

Dr.
June. 1 7,000
Kashif Account
(Goods bought on credit)

June.1 Kashif Account ------------------------------------------ 7,000

Dr.
7,000
Bill payable Account
(Acceptance given)

Sep. 4 Bill payable Account ---------------------------------- Dr. 7,000

Cash Account 7,000

(Amount of bill paid)

Q. From the following, Prepare Bank reconciliation statement :

1. Balance as per Cash book Rs.33,000.

2. Cheque deposited into bank Rs.4,000 but not cleared.
3. Cheque issued but not presented Rs.2,000.
4. A customer directly deposited Rs.1,000 into bank but not recorded in cash book.
 5. Bank service charges debited by bank Rs.200.

Mr.--------------

Bank reconciliation statement

As
Debit Credit
Date Particulars
(Rs.) (Rs.)
Balance as per Cash book 33,000

Cheque deposited into bank but not cleared. 4,000

Cheque issued but not presented. 2,000

A customer directly deposited into bank but not recorded 1,000

in cash book.
200
Bank service charges debited by bank.

Balance as per Pass book

31,800

36,000 36,000

on---------

Subject: Principles of Accounting Part: I Board: Punjab Board

Chapter No.: 6 Chapter Name: Bills of Exchange
Topic: Bills of Exchange Sub Topic: Bill Discounted
Board: Faisalabad Year: 2022 Group:
Long Question:
Imran sold goods to Anwer on credit on 1st March,2020 for Rs.20,000. Imran drew a 3 months bill for the same
amount on Anwer. Anwer accepted the bill and returned to Imran. On 4th March 2020, Imran discounted the
bill from bank for Rs.19,000. On the due date bill is paid.
Required: Record the Journal entries in the books of Imran and Anwer.
Answer:
Imran’s Journal
L Debit Credit
Date Particulars
F (Rs.) (Rs.)

2020 Anwer Account --------------------------------------Dr. 20,000

Mar.1 Sales Account 20,000

(Goods sold on credit)

Mar.1 Bill receivable Account ----------------------------- Dr. 20,000

Anwer Account 20,000

(Acceptance received for 3 months)

June. 4 Bank Account -----------------------------------------Dr. 19,000

Discount Account ------------------------------------Dr. 1,000
Bill receivable Account 20,000

(Bill discounted)

Anwer’s Journal
L Debit Credit
Date Particulars
F (Rs.) (Rs.)

2020 Purchases Account -------------------------------------- 20,000

Dr.
Mar.1 20,000
Imran Account
(Goods bought on credit)

Mar.1 Imran Account ------------------------------------------Dr. 20,000

Bill payable Account 20,000

(Acceptance given)

June. 4 Bill payable Account ---------------------------------- Dr. 20,000

Cash Account 20,000

(Amount of bill paid)

 Bank balance as per Cash book 50,000

Cheque deposited into the bank but not yet credited 15,000
Q. From the
Cheque issued but not presented 10,000

Interest credited by bank but not recorded in cash book 500

Bank charges debited by the bank but not recorded in 100

cash book

The bank debited the account for service charges

275
Bank balance as per Pass book. (Cr.)
45,125

60,500 60,500

following, Prepare Bank reconciliation statement of Ahmad and Bros.:

(i) Bank balance as per Cash book Rs.50,000

(ii) Cheque deposited into the bank but not yet credited Rs.15,000
(iii) Cheque issued but not presented Rs.10,000
(iv) Interest credited by bank but not recorded in cash book Rs.500
(v) Bank charges debited by the bank but not recorded in cash book Rs.100
(vi) The bank debited the account for service charges Rs.275

Ahmad and bros.

Bank reconciliation statement

As on --------------