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Question -

Following was the position of debtor and creditor of Gautam as on 1.1.2017.
Debtors Creditors
₹ ₹
Babu 5,000 –
Chanderkala 8,000 –
Kiran 13,500 –
Anita 14,000 –
Anju – 5,000
Sheiba – 12,000
Manju – 6,000
 
The following transactions took place in the month of Jan 2017:
Jan. 02 Drew on Babu at two months after date at full settlement for ₹ 4,800. Babu accepted the bill and returned it on 5.1.2017.
Jan. 04 Babu’s bill discounted for ₹ 4,750.
Jan. 08 Chanderkala sent a promissory note for ₹ 8,000 payable three months after date.
Jan. 10 Promissory note established from Chanderkala discounted for ₹ 7,900
Jan. 12 Accepted Sheiba draft for the amount due payable two months after date.
Jan. 22 Anita sent his promissory note payable after two months.
Jan. 23 Anita’s promissory note endorsed in favour of Manju.
Jan. 25 Accepted Anju’s draft payable after three months.
Jan. 29 Kiran sent ₹ 2,000 in cash and a promissory note for the balance payable after three months.
Record the above transactions in the proper subsidiary books.



Answer -

Bills Receivable Book

No.

Date of Bill

2017

Date Received 

2016

From whom 

of Bill

Drawer 

whom 

received

Acceptor

Where

Term 

Payable

Due date 

2016

L.F.

Amount

Cash 

Book 

Folio

Remarks

01

02 Jan

05 Jan

Babu

Self

Babu

2 months

05 Mar

4,800

Total

4,800

Bills Payable Book

No.

Date of Bill

2017

To Whom

Given

Drawer

Payee

Where 

payable

Term

Due date 

2017

Ledger

Amount

Date 

paid

Cash 

Book 

Folio

Remarks

01

12 Jan

Sheiba

Sheiba

2 months

15 Mar

12,000

02

25 Jan

Anju

Anju

2 months

28 Apr

5,000

Total

17,000

 

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

 ₹

Bank 

2017

2017

04 Jan

Bills Receivable

4,750

10 Jan

Bills Receivable

7,900

29 Jan

Kiran

2,000

31 Jan

Balance c/d

2,000

12,650

2,000

12,650

2,000

12,650

 Books of Gautam

Journal

Date

Particulars

L.F.

Debit ₹

Credit₹

2017

05 Jan

Discount Allowed A/c

Dr.

200

To Babu

200

(Babu’s acceptance received and allowed him

discount ₹ 200)

04 Jan

Discount A/c

Dr.

50

To Bills Receivable A/c

50

(Babu’s acceptance discounted with a discount

charge of ₹ 50)

08 Jan

Bills Receivable A/c

Dr.

8,000

To Chanderkala

8,000

(Promissory Note from Chanderkala received)

10 Jan

Discount A/c

Dr.

100

To Bills Receivable A/c

100

(Chanderkala’s Promissory Note discounted with bank

at discount of ₹ 100)

22 Jan

Bills Receivable A/c

Dr.

14,000

To Anita

14,000

(Promissory note established from Anita)

23 Jan

Manju

Dr.

14,000

To Bills Receivable A/c

14,000

(Anita’s Promissory Note endorsed to Manju)

29 Jan

Bills Receivable A/c

Dr.

11,500

To Kiran

11,500

(Promissory Note from Kiran received)

 

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