Monday, 7 October 2013

BILLS OF EXCHANGE - PRACTICE PROBLEMS PART 2


Q.1. Journalise the following transactions in the books of smita.              
1. Nita informs Smita about dishonour of Anita’s acceptance endorsed to her by smita for Rs. 15000. Nita paid noting charges of Rs.70.
2. Sumita retired her acceptance for Rs. 7000 one month before the due date at a rebate of 12% p.a. to Sumita.                                                                                   
3.  Bank informs Smita about dishonour of Kavita’s acceptance for Rs. 7500, sent for collection by Smita. Noting charges amounted to Rs. 75.
4. Vinita renews her acceptance to Smita for Rs. 5000 by paying Rs. 2000 in cash And accepting a fresh bill for the balance plus interest Rs. 90 for two months.

Q.2. Journalise the following transactions in the books of Sharad.                    
1. Hemant informed Sharad that vasant’s acceptance for Rs. 5000 endorsed to Hemant has been dishonoured. Hemant paid noting charges of Rs.50.
2. Shirisha retired her acceptance for Rs. 7600 by paying Rs. 7500 in cash.                                   
3.  Sharad sent a bill of Amol for Rs. 10000 to bank for collection. But bank informed that the bill has been dishonoured by Amol.
4. Pramod renews his acceptance to Sharad for Rs. 15000 by paying Rs. 5000 in cash and accepting a fresh bill for the balance plus interest @ 10% for three months.

Q.3. Journalise the following transactions in the books of Avdhoot.
1. Nandani informs Avdhoot that Anita’s acceptance for Rs. 15000 endorsed to her has been dishonoured. noting charges of Rs.100.
2. Dhanashri renews her acceptance to Avdhoot for Rs. 2400 by paying Rs. 1200 in cash and accepting a fresh bill for the balance plus interest @ 12% for three months.
3. Ashish retired his acceptance for Rs. 6000 one month before the due date at a rebate of 20% p.a. to Avdhoot.
4. Bank informs Avdhoot about dishonour of Shashikala’s acceptance for Rs. 4000, discounted with bank. Noting charges amounted to Rs. 70.
5. Avdhoot sent a bill of Pravin for Rs. 6000 to the bank for collection.

Q. 4. Vaidya sold goods to Sathe for Rs.5000 @ 5% T.D. and on the same date drew on Sathe a bill for 2 months for the amount due who accepted the same. Vaidya then endorsed the bill to joshi.
On the due date Joshi Informed Vaidya About the dishonour of bill and noting charge Paid by him Rs. 50 Vaidya settled Joshi’s A/c and drew a fresh bill on Sathe for the amount due plus noting charges plus interest Rs. 100 for one month. Before the due date Sathe become insolvent and 40 paise in a rupee were received from his estate as first and final dividend.
Pass the journal entries in the books of Vaidya.

Q. 5. Abha purchased goods from Prabha on credit for Rs. 10000 and accepted a bill drawn by prabha for 4 months. Prabha discounted the bill with the bank for Rs. 9800. Before due date Abha Approached Prabha with a request to renew the bill. Prabha agreed but with the condition that Abha should Pay Rs. 6000 with interest of Rs. 150 and accept a new bill for the balance. The arrangements were duly carried out. New bill is met on due date.  
Pass the journal entries in the books of Prabha.

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