Accountancy - Bills of Exchange - 230929 - 081107

IAT Professional Campus Kottarakara
CA Foundation – Accountancy
Assignment - Bill of Exchange
(1)RTP Nov 2020
(2)RTP May 2020
(3)RTP Nov 2019
1
(4)Prev Qp May 2019
(5)Prev QP Nov 2020
Suresh draws a bill for Rs 15,000 on Anup on 15th April, 2020 for 3 months, which Anup
return to Suresh after accepting the same. Suresh gets it discounted with the bank for Rs
14,700 on 18th April, 2020 and remits one-third amount to Anup. On the due date Suresh
fails to remit the amount due to Anup, but he accepts a bill of Rs 17,500 for 3 months,
which Anup discounts for Rs 17,100 and remits Rs 2,825 to Suresh. Before the maturity
of the renewed bill Suresh becomes insolvent and only 50% was realized from his estate
on 31st October 2020.
Pass necessary Journal entries for the above transactions in the books of Suresh.
Practical 1
On 1 February, 2017 three bills were drawn by Kiran on Mohanji, who owed 350,000 to
him. The bills were
accepted by Mohanji as follows:
(1) Bill for 10.000 for 1 month
(2) Bill for 15,000 for 2 months
(3) Bill for 25,000 for 3 months
The first bill was endorsed in favour of Rina on sa February, 2017. The second bill was
sent to bank for collection on 10 February, 2017. The third bill was retained by Kiran till
due date. The first bill was honoured on due date. The bill sent for collection to bank was
dishonoured and noting charges paid Rs 100. Mohanji paid the amount by cheque on 20th
April, 2017. In respect of third bill, Mohanji requests Kiran to renew the bill for three
months for the amount of third bill together with interest at 10% per annum. Kiran
accepted the proposal on 4th May, 2017. Pass the necessary journal entries in the books of
Kiran, Mohanji and Rina
2
Practical 2
Namnita sold goods to Monika for 25,000 on 1st January, 2018. On the same date, four
bills were drawn on Monika and accepted by her for Rs 4,000, Rs 5,000, Rs 6,500, and Rs
9,500 for 2 months, 3 months, 4 months and 5 months respectively. The bill for Rs 4,000
was sent by Namita to bank for collection on 15th January, 2017, whereas the bill for Rs
5,000 was discounted with the bank @ 12% on 31st January, 2017. As Namita owed Rs
6,500 to Neha so she endorsed the third bill in favour of Neha on 3rd February, 2017. The
fourth bill was retained by Namita till due date. The first and second bills were honoured
on due date but the third bill was dishonoured. On due date of the fourth bill, Monika
became insolvent and could only pay 50 paise in a rupee.
Pass necessary journal entries.
Practical 3
Raman sold gods for Rs 3.000 to Rinku on 1st January, 2017 and on the same date drew a
bill on Rinku at 3 months for the amount. Rinku accepted it and returned it to Raman,
who discounted the same on 4 February, 2017 with the Bank @ 12% per annum. The
acceptance was dishonoured on the due date. The noting charges paid by the Bank being
Rs 20. On 4th April, 2017 Rinku accepted a new bill at 2 months for the amount due to
Raman together with interest at 12% pa. The second bill was paid on the due date.
Make Joumal entries to record the transactions in the books of all the parties
Practical 4
A draws a bill for Rs 3,000 on B and B accepts the same for the mutual accommodation of
both of them to the extent of two-third and one-third respectively. A discounts the same
for Rs 2,910 and remits one third of the proceeds to B. Before the due date, B draws a bill
on for Rs 4,500 in order to provide funds to meet the first bill. The second bill is
discounted for Rs 4.350 with the help of which the first bill is met and Rs 900 are remitted
by B to A. Before the due date of the second bill, A becomes insolvent and B receives
from his estate a dividend of 50 paise in a rupee in full settlement.
Give journal entries to record these transactions in the books of A and B and prepare A's
& B's Account
3
RTP Nov 2021
RTP May 2021
MTP May 2022
RTP May 2022
4
5
Bill of Exchange - Answer
RTP Nov 2020
6
RTP May 2020
7
RTP Nov 2019
8
RTP May 2019
9
Qp may 2019
10
Qp Nov 2020
11
Practical 1
12
Practical 2
13
Practical 3
14
15
Practical 4
16
17
RTP Nov 2021
18
RTP May 2021
MTP May 2022
19
RTP May 2022
20
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IAT Professional Campus Kottarakara

(2)RTP May 2020

(3)RTP Nov 2019

(4)Prev Qp May 2019

(5)Prev QP Nov 2020

accepted by Mohanji as follows:

(1) Bill for 10.000 for 1 month

(2) Bill for 15,000 for 2 months

(3) Bill for 25,000 for 3 months

Pass necessary journal entries.

RTP Nov 2021

RTP May 2021

MTP May 2022

RTP May 2022

Bill of Exchange - Answer

RTP Nov 2020

RTP May 2020

RTP Nov 2019

RTP May 2019

RTP Nov 2021

RTP May 2021

MTP May 2022

RTP May 2022

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