Bills of Exchange Solution | March 2018 HSC Board Paper

Q. 4. Bills of Exchange

March 2018 HSC Board Paper Solution

Refer to the question paper image below.

Journal Entries

In the books of Sayali

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Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
(1)	Manali’s A/cDr. To Sales A/c [Being the goods are sold]		40,000	40,000
(2)	Bills Receivable A/cDr. To Manali’s A/c [Being the bill is drawn]		40,000	40,000
(3)	Bank A/cDr. Discount A/cDr. To Bills Receivable A/c [Being the bill is discounted]		38,800 1,200	40,000
(4)	Manali’s A/cDr. To Bank A/c [Being the bill is dishonoured and noting charges charged]		40,300	40,300
(5)	Manali’s A/cDr. To Interest A/c [Being the interest is charged]		750	750
(6)	Cash A/cDr. To Manali’s A/c [Being the part payment is made along with Noting charges]		20,300	20,300
(7)	Bills Receivable A/cDr. To Manali’s A/c [Being the new bill is drawn along with interest]		20,750	20,750
(8)	Manali’s A/cDr. To Bills Receivable A/c [Being the bill is dishonoured]		20,750	20,750
(9)	Cash A/cDr. Bad debts A/cDr. To Manali’s A/c [Being the drawee become insolvent and only 40 % of the amount could be recovered from her private estate]		8,300 12,450	20,750