12TH COMMERCE – BOOK-KEEPING & ACCOUNTANCY

Test: 04 PRACTICE TEST PAPERS Marks: 40

Topic: Bills of Exchange Time: 1 Hours 30 Mins

ANSWERS
Q.1. In the Books of Mr. Sharma
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2008 Jagtap’s A/c Dr. 3,000
st
1 June To Sales A/c 3,000
(Being goods sold on crdit to Jagtap)
3rd June Bills Receivable A/c Dr. 3,000
To Jagtap’s A/c
(Being accepted bill recd. from Jagtap) 3,000
15th June Cash/Bank A/c Dr. 2,980
Discount A/c Dr. 20
To Bills Receivable A/c 3,000
(Being bill discounted with bank)
6th Sept. Jagtap’s A/c Dr. 3,020
To Bank A/c 3,020
(Being discounted bill dishonored and noting charges incurred)
6th Sept. Jagtap’s A/c Dr. 50
To Interest A/c
(Being Interest due) 50
6th Sept. Cash/Bank A/c Dr. 1,550
To Jagtap’s A/c 1,550
(Being half the amount, including interest recd. from Jagtap)
6th Sept. Bills Receivable A/c Dr. 1,520
To Jagtap’s A/c 1,520
(Being new bill drawn accepted including the amount of
interest)
9th Oct. Cash/Bank A/c Dr. 1,520
To Bills Receivable A/c 1,520
(Being new bill with interest is honoured on due date)
Total 16,650 16,650
Q.2. In the books of Krishna
Journal Entries
Debit Credit
Date Particulars L.F.
` `
1 Bills Receivable A/c Dr. 24,000
To Balram's A/c. 24,000
(Being bill drawn and accepted by Bairam at 3 months)
2 Bank A/c Dr. 23,600
Discount A/c. Dr. 400
To Bills Receivable A/c. 24,000
(Being discounted bill with bank at 10% p.a. for two months)
3 Balrarn's A/c. Dr. 24,200
To Bank A/c. 24,200
(Being discounted bill dishonoured and noting charges paid by bank)
4 Bank A/c. Dr. 6,200
To Balram's A/c. 6,200
(Being received ¼ of the amount of bill and noting charges from
Balram)
5 Balram' s A/c. Dr. 540
To Interest A/c. 540
(Being charged interest on balance due at 12% p.a. for 3 months)
6 Bills Receivable A/c. Dr. 18,540
To Balram's A/c. 18,540
(Being received new accepted bill from Balram for balance due
together with interest)
7 Bill sent to Bank for collection A/c. Dr. 18,540
To Bills Receivable A/c 18,540
(Being sent new bill to bank for collection)
8 Bank A/c Dr. 18,400
Bank charges A/c Dr. 140
To Bill sent to Bank for collection A/c 18,540
(Being, new bill honoured and bank charges debited by bank)
Total 1,34,560 1,34,560
 In the ledger of Bairam
Dr. Krishna's Account Cr.
Date Particulars J.f. (`) Date Particulars J.f. (`)
To Bills Payable A/c 24,000 By Balance b/d 24,000
To Bank A/c 6,200 By Bills Payable A/c 24,000
To Bills Payable A/c 18,540 By Noting Charges A/c 200
By Interest A/c 540
48,740 48,740

Q.3. (1) Disagree (2) Disagree

(3) Agree (4) Agree
(5) Agree (6) Agree
(7) Disagree (8) Disagree
(9) Disagree (10) Agree

Q.4.
Rate Unexpired days
1. Discount = Amount of bill x 
100 366
15 50
= 40,260 x 
100 366
= ` 825
(Note: 2020 is a Leap Year. So Total number of days = 366)

Rate Unexpired days

2. Discount = Amount of bill x 
100 365
12 3
(i) Discount = 30,000 x  = ` 900
100 12
12 2
(ii) Discount = 30,000 x  = ` 600
100 12
12 1
(iii) Discount = 30,000 x  = ` 300
100 12

3. From Veena, only 35 paise in a rupee could be recovered i.e. 65 paise in a rupee is bad debts for Sudha. So,
56% of ` 28,000 = ` 18,200 is the amount of bad debts.

4. For Nitin, Total outstanding = 72,000

Nitin paid in cash = ` 22,000
Remaining dues = ` 50,000
Now, on this ` 50,000 we have to calculate interest @ 18% for 4 Months
 PRN 18 4
I= = 50, 000 x  = ` 3,000
100 100 12
So amount of new bill = Remaining dues + Interest
= 50,000 + 3,000
= ` 53,000

5. Bill of ` 16,850 sent to bank for collection and it is honoured and bank charges = ` 125
So, actual amount received by drawer = 16,850 – 125
= 16,725

6. Consider immediate or next working day as due data in case the legal due date is declared as emergency
holidays.
i.e. Here, it is 12th June, 2019 12/06/2019
+ 2 Months + 02
+ 3 days of grace + 03
15/08/ 2019
 Legal due date is 16 August, 2019 (Next day)
th

*******