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Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
Bill of exchange
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Bill of exchange

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BILL OF EXCHANGE

BILL OF EXCHANGE

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  • 1. OMTEX CLASSES BILL OF EXCHANGE Problem No. 1 Journalize the following transactions in the books of Maharaja. [Ans] i. Ayub informs Maharaja that Sadashiv’s acceptance for Rs. 2,000 endorsed to Ayub has been dishonoured, noting charges amounted to Rs. 150. ii. Pankaj renews his acceptance to Maharaja for Rs. 1200 by paying Rs. 400 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months.. iii. Vaibhav’s acceptance to Maharaja for Rs. 6000 retired one month before the due date at a discount of 12%p.a. iv. Bank informs Maharaja as to the dishonour of Kasam’s acceptance for Rs. 2000 to Maharaja discounted with Bank noting charges Rs. 200. Problem No. 2 Journalise the following transactions in the book’s of Bhaskar. [Ans] i. Suresh informed Bhaskar that Nishad’s acceptance for Rs. 2500 endorsed to Suresh has been dishonoured and noting charges amounted to Rs. 25. ii. Rajesh renews his acceptance to Bhaskar for Rs. 7500 by
  • 2. OMTEX CLASSES BILL OF EXCHANGE paying Rs. 2500 in cash and accepting a fresh bill for the balance plus interest @ 10% p.a. for three months. iii. Mandar retired his acceptance to Bhaskar for Rs. 3,800 by paying Rs. 3750 in cash. iv. Bhaskar sent a bill of Dayaram for Rs. 5000 to the bank for collection. But the bank informed that the bill has been dishonoured by Dayaram. Problem No. 3 Journalize the following transactions in the books of Kamesh: [Ans] i. Nanda informs Kamesh that Shanti’s acceptance for Rs. 4,000 endorsed to Nanda has been dishonoured and noting charges have been Rs. 100. ii. Ashok renews his acceptance to Kamesh for Rs. 2400 by paying Rs. 800 in cash and accepting a new bill for the balance plus interest @ 12 p.a. for 3 months. iii. Deva’s acceptance to Kamesh Rs. 12,000 is retired one month before its due date at a discount of 12% p.a. iv. The bank informs Kamesh that Sudhakar’s acceptance for Rs. 4,000 has been dishonoured and it has paid noting charges Rs. 80. Problem no. 4
  • 3. OMTEX CLASSES BILL OF EXCHANGE On 1st March, 2013. Ramchandra sold goods to Raman worth Rs. 8,000/- and Raman accepted the Bill for Rs. 8,000/- at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his bank @ 6% p.a. On due date the bill was dishonoured and Raman requested Ramchandra to accept Rs. 4,000/- immediately and draw upon him a new bill for the remaining amount at 3 months together with an interest @ 10% p.a. Ramchandra agreed. The second Bill was duly honoured. Give Journal entries in the books of Ramchandra. [Ans] Problem no. 5 Premlal sold goods to Sunderlal worth Rs. 10,000/- and Sunderlal accepted the bill for Rs. 10,000/- at 3 months drawn by Premlal. Premlal discounted the bill with his bank @ 6 % p.a. On due date the bill was dishonoured and Sunderlal requested Premlal to accept Rs. 4,000 immediately and draw upon him a new bill for the remaining amount at 3months together with an interest at 10% p.a. Premlal agreed and the second bill was duly honoured. Give the Journal entries in the books of Premlal. [Ans.] Problem no. 6 Archana purchased goods from Babita on credit for Rs. 20,000. On next day Archana paid Rs. 10,000 to Babita and accepted a bill drawn by Babita for the balance amount for four months. Babita discounted the bill with her bank for Rs. 9600/-. Before
  • 4. OMTEX CLASSES BILL OF EXCHANGE the due date Archana approached Babita with a request to renew the Bill. Babita agreed with the condition that Archana should pay Rs. 6000 along with interest of Rs. 120 and accept a new bill for the balance. These arrangements were duly carried out. New bill is met on the due date. Pass journal entries in the books of Babita. [Ans.] Problem no. 7 Bhagyashri sold goods to Rupa worth Rs. 24,000 to Rupa. On the next day Rupa paid Rs. 10,000 in cash and accepted 4 months bill for balance amount drawn by Bhagyashri. Bhagyashri discounted the bill at 10% p.a. after one month with her bank. On due date Rupa dishonoured her acceptance and noting charges amounted to Rs. 200. Rupa paid half the amount of the bill and full amount of noting charges. Rupa accepted a new bill at 2 months for the balance amount plus interest Rs. 100. Pass necessary journal entries in the books of Bhagyashri. [Ans.] Problem no. 8 Baloo owes Kaloo Rs.8000. Kaloo then draws a bill for Rs. 8000 on Baloo for a period of three months. Baloo accepts and return it to Kaloo. Kaloo discounted the bill with his bank @ 12 % p.a. On due date, the bill was dishonoured noting charges amount to Rs. 30. Kaloo then draws a bill for the balance plus interest of Rs. 170. Before the due date of this bill Baloo pays the amount at a discount of Rs. 40 to retire the bill. Pass Journal Entries in the books of Kaloo. [Ans.]
  • 5. OMTEX CLASSES BILL OF EXCHANGE Problem No. 9. Minal draws a bill on Usha for Rs. 5,000 at 3 months. Usha accepts the bill and return to Minal. Minal discounted the bill @ 12 % p.a. with the bank. On Maturity Usha finds herself unable to make payment of the bill and requested Minal to renew the bill. Minal accepts the proposal on the condition that Usha should Pay Rs. 2,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrangements were carried through. Usha retires the bill by paying Rs. 3015/- Pass Journal Entries in the books of Minal. [Ans] Problem No. 10 Sonia draws a bill on Moni for Rs. 6,000 at 4 months. Moni accepts the bill and returns it to Sonia who discounts the bill with the bank at a discount of 8% p.a. Before the due date of Bill Moni requested Sonia to accept Rs. 4000 in cash and draw a bill for the balance plus interest at 12% p.a. for two months. Sonia draws a bill as the request is agreed. The bill is sent to bank for collection. On the due date the bill was honoured. Pass the necessary journal entries in the books of Sonia. [Ans] Problem No. 11 On 1st March, 2014. Bheem sold goods to Raju worth Rs. 10,000/- and Raju accepted the Bill for Rs. 10,000/- at 3 months drawn by Bheem. Bheem discounted the bill with his bank @ 10% p.a. On due date the bill was dishonoured and Raju requested Bheem to accept Rs. 4,000/- immediately and draw
  • 6. OMTEX CLASSES BILL OF EXCHANGE upon him a new bill for the remaining amount at 3 months together with an interest @ 10% p.a. Bheem agreed. The second Bill was duly honoured. Give Journal entries in the books of Bheem. [Ans] Problem No. 12 Sachin sold goods to Dhoni worth Rs. 1,00,000/- and Dhoni accepted the bill for Rs. 1,00,000/- at 3 months drawn by Sachin. Sachin discounted the bill with his bank @ 10 % p.a. On due date the bill was dishonoured and Dhoni requested Sachin to accept Rs. 40,000 immediately and draw upon him a new bill for the remaining amount at 3months together with an interest at 10% p.a. Sachin agreed and the second bill was duly honoured. Give the Journal entries in the books of Dhoni. [Ans] Problem No. 13 Rose purchased goods from Lilly on credit for Rs. 2,000. On next day Rose paid Rs. 1,000 to Lilly and accepted a bill drawn by Lilly for the balance amount for four months. Lilly discounted the bill with her bank for Rs. 960/-. Before the due date Rose approached Lilly with a request to renew the Bill. Lilly agreed with the condition that Rose should pay Rs. 600 along with interest of Rs. 12 and accept a new bill for the balance. These arrangements were duly carried out. New bill is met on the due date. Pass journal entries books of Lilly. [Ans]
  • 7. OMTEX CLASSES BILL OF EXCHANGE Problem No. 14 Kaveri sold goods to Ganga worth Rs. 4,000 to Ganga. On the next day Ganga paid Rs. 1,000 in cash and accepted 4 months bill for balance amount drawn by Kaveri. Kaveri discounted the bill at 10% p.a. after one month with her bank. On due date Ganga dishonoured her acceptance and noting charges amounted to Rs. 20. Ganga paid half the amount of the bill and full amount of noting charges. Ganga accepted a new bill at 2 months for the balance amount plus interest Rs. 100. Pass necessary journal entries in the books of Kaveri. [Ans] Problem No. 15 Ronaldo owes Ricardo Rs.80,000. Ricardo then draws a bill for Rs. 80,000 on Ronaldo for a period of three months. Ronaldo accepts and return it to Ricardo. Ricardo discounted the bill with his bank @ 10 % p.a. On due date, the bill was dishonoured noting charges amount to Rs. 300. Ricardo then draws a bill for the balance plus interest of Rs. 1700. Before the due date of this bill Ronaldo pays the amount at a discount of Rs. 400 to retire the bill. Journal Entries Ronaldo. [Ans] Problem No. 16 Sun draws a bill on Moon for Rs. 15,000 at 3 months. Moon accepts the bill and return to Sun. Sun discounted the bill @ 10 % p.a. with the bank. On Maturity Moon finds herself unable to make payment of the bill and requested Sun to renew the bill.
  • 8. OMTEX CLASSES BILL OF EXCHANGE Sun accepts the proposal on the condition that Moon should Pay Rs. 12,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrangements were carried through. Moon retires the bill by paying Rs. 3015/- Pass Journal Entries in the books of Sun. [Ans] Problem No. 17. Nazriya draws a bill on Anitha for Rs. 60,000 at 4 months. Anitha accepts the bill and returns it to Nazriya who discounts the bill with the bank at a discount of 10% p.a. Before the due date of Bill Anitha requested Nazriya to accept Rs. 40000 in cash and draw a bill for the balance plus interest at 12% p.a. for two months. Nazriya draws a bill as the request is agreed. The bill is sent to bank for collection. On the due date the bill was honoured. Pass the necessary journal entries in the books of Anitha. [Ans.] Problem No. 18. 8. Anil drew a bill for Rs. 4,000 on Navin on 1st May, 2013 for three months. This was for the amount which Navin owed to Anil. Navin accepts the same and return it to Anil who discounted at his bank for Rs. 3,900. On 1st Aug, 2013 Navin requested Anil to renew the bill and Anil agreed on the condition that Rs. 1,000 is paid immediately and Navin should accept the new bill for 3 months for the balance payable plus interest of Rs. 45. These arrangements were carried through. However, on 1st October, 2013, Navin retired his acceptance for Rs. 3, 035. Pass journal entries in the books of Anil. [Ans]
  • 9. OMTEX CLASSES BILL OF EXCHANGE Problem No. 19. 9. Karthik accepted a bill for Rs. 20,000/- drawn by Jones at three months. Jones got the bill discounted with his bank for Rs. 19,900. Before the due date Karthik approached Jones for renewal of the bill. Jones agreed on the condition that Rs. 10,000/- be paid immediately together with interest on the remaining amount at 6% p.a. For balance Karthik should accept a new bill for three months. These arrangements were carried through but afterwards, Karthik become Insolvent and only 80 % of the amount could be recovered from his estate. Give journal entries in the books of Karthik. [Ans] Problem No. 20. 10. Ajith accepted a bill for Rs. 10,000 drawn by Surya at three months. Surya got the bill discounted with his bank for Rs. 9,700. Before the due date, Ajith approached Surya for renewal of the Bill. Surya agreed on the condition that Rs. 7,000 is paid immediately together with an interest on remaining amount at 18% p.a. for four months and for the balance Ajith should accept a new bill. But afterwards Ajith become insolvent and only 25% of the amount could be recovered from her estate. Pass journal entries in the books of Surya. [Ans] Problem No. 21. Salman draws a bill on Amithab worth Rs. 90,000 for three months which was accepted by Amithab. On the same date Salman discounted the bill with his bank @ 10 % p.a. On the
  • 10. OMTEX CLASSES BILL OF EXCHANGE due date Amithab dishonoured his acceptance. Amithab paid Rs. 40,000/- to Salman and accepted a fresh bill for two months for the balance including interest of Rs. 4000. Amithab became insolvent before the maturity of the bill and 50 paise in a rupee was received at first and final dividend from his estate. Journal entries books of Amithab. [ANS] Problem No. 22. On 1st January, 2014 Archana drew a bill for Rs. 6,000 for 2 months periods on Ramya. Ramya duly accepted the bill. On 4th January 2014 Archana discounted the bill with her bank for Rs. 5850. However, on the due date the bill was dishonoured. Ramya agreed to accept a new bill with an interest of Rs. 150 for a period of one month. The bill was duly met on the due date. Give the journal entries in the books of Archana and show Archana’s account in the books of Ramya. [ANS] Problem No. 23. Mukesh owes Anil Rs. 40000 for which Anil draws a bill for 2 months on 1st February, 2014. Mukesh accepts it and returns it to Anil. On 4th March, 2014, Mukesh approaches Anil and request him to accept Rs. 10000 in cash and draw a fresh bill for 3 months for the balance plus interest @ 10% p.a. Anil accepts the request and draw a bill accordingly which is accepted by Mukesh. On 1st June 2014 Mukesh retired his acceptance under discount of Rs. 30/-. Pass journal entries in the books of Anil and prepare Anil account in the ledger of Mukesh. [ANS]
  • 11. OMTEX CLASSES BILL OF EXCHANGE Format of the Bill of Exchange Format No. 1 Drawer : Ramesh Mishra, L.B.S. Road, Ghatkopar, Mumbai Drawee : Nandkumar Sharma, Laxmi Road, Pune Payee: Rupesh Kumar Pande, Rajkamal Chowk, Amaravati. Period of bill: 90 days Amount of bill : Rs. 25,000 Date of Bill: 17th February, 2014 Date of Acceptance: 20th February, 2014 Accepted for : Rs. 20,000 only. Format No. 2 Drawer : Shekhar Desai, Shastri Road, Mahad. Drawee : Sharad Verma, Narayanpeth, Pune
  • 12. OMTEX CLASSES BILL OF EXCHANGE Payee : Mukund Pande, Panel. Amount : Rs. 3,500/- Period : 3months. Date of Bill : 21st June, 2013 Bill accepted : For 3,000 on 25th June, 2013. Format No. 3 Drawer : Abhijit Patil, Vikram nagar, Patna. Drawee : Tejas Kapare, Kothrud, Pune. Payee : Amey Patki, Nagpur. Amount : Rs. 7500 Period : 60 days Term : After sight Date of Bill Drawn : 1st June 2013 Date of Acceptance : 11th June 2013
  • 13. OMTEX CLASSES BILL OF EXCHANGE Accepted bill for Rs. : 7000 only. Format No. 4 Drawer: Yamini Gupta, Sarvapriya Vihar, Delhi Drawee – Kamini Sharma, Raj baug, Agra. Period – 100 days. Term – After acceptance Date of Bill – 1st January, 2014 Amount – Rs. 10,500/- Date of Acceptance – 3rd January, 2014 Format No. 5 Drawer : Mr. Avadhoot Raktade, 586. Main Road, Ajara Drawee : Mr. Mukund Aglawe 133, Chandni Chowk, Panvel. Amount : Rs. 8,800. Period : Two Months.
  • 14. OMTEX CLASSES BILL OF EXCHANGE Date of Bill : 1 st May, 2013. Date of Acceptance : 5 th May, 2013. Format No. 6 Drawer : Soundariya, Neelam Bhawan, Kalyan Drawee : Sugandi, Dastur Nagar, Amaravati Payee : Umesh , Deogad Period : 90 days Amount : Rs. 7,555 Date of bill : 15th March 2012 Accepted on : 20th March 2012 Format No. 7 On 10th March, 2013 Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on Samir Choudhary, Main
  • 15. OMTEX CLASSES BILL OF EXCHANGE Road, and Belapur. Samir Choudhary accepted the bill on 15th March 2013 Format No. 8 Drawer : Vilas Patil, 44, M.G. Road, Nanded. Drawee : Pankaj Pawar, 70, Bhavani Galli, Solapur. Payee : Ramchandra Rampure, Rampur. Period : 60 days. Date of Bill : 28th January, 2014 Date of Acceptance : 29th January, 2014 Amount of the Bill : Rs. 2,800/- Format No. 9 Drawer : Vijay Bhat, Main Road, Nagpur. Drawee : Ashok Kulkarni, M.G. Road, Nagpur. Payee : Anil Jadhav, Pune.
  • 16. OMTEX CLASSES BILL OF EXCHANGE Amount : Rs. 6,950. Period : 80 days. Date of Bill : 7th March, 2013. Accepted on : 10th March, 2013. For 90 days. Definition of Bills of Exchange Fill ups . Select the most appropriate alternative form those given below. Write the words/ term /phrase which can substitute each of the following statements True or False Journal Entries in the books of Drawer Journal Entries in the Books of Drawee A BILL OF EXCHANGE Parties to Bill of Exchange Common Rules regarding Bills of Exchange (Sections 132 and 133) Acceptance

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