Chandan Poddar

Test
Bills of Exchange
Q.1 A two months Bill for Rs.60,000 is drawn by B & Co. and accepted by C & Co., payable at
the Bank of India. B & Co. gives the bill to their banker for collection. On due date, bill is
honoured. Show what entries will be passed in the books of B & Co. 3
Q.2 Ashok draws on Brij three Bills of Exchange for Rs.5,000; Rs.4,000 and Rs.3,000
respectively for goods sold to him on 1st February, 2018, These bills were for one month,
two months and three months respectively. The first bill was endorsed to his creditor Chand.
The second bill was discounted with his bank on 4th February, 2018 @ 12% p.a. discount
and the third bill was sent to his bank for collection on 30th April. On the due dates all the
bills were duly met by Brij. The bank sent the collection advice for the third bill after
deducting 25 as collection charges. Pass the Journal entries in the books of Ashok and Brij.10
Q.3 A sold goods for Rs.50,000 to B on 1st January, 2018 and on the same day he drew a bill
on B at three months for the amount. The bill is duly accepted but is dishonoured on the due
date. A pays Rs.1,000 as noting charges.
Record these transactions in the Journals of A and B. 5
Q.4 X draws a bill on Y for Rs.20,000 on 4th September, 2018 payable after 4 months. X
discounts the bill with the bank @ 12% p.a. on 7th October. The bill is dishonoured on the
due date. Pass the necessary Journal entries in the books of X and Y if the bank paid Rs.300
as noting charges. 5
Q.5 Journalise the following transactions in the books of Kamal:
Ganesh informs Kamal that Sahani’s Promissory Note for Rs.75,000 has been dishonoured
and that noting charges Rs.250 have been paid. Kamal sends Ganesh’s cheque and withdraws
the Promissory Note. 3
Q.6 Journalise the following in the books of Mohan: 4
(i) Mohan’s acceptance to Sohan for Rs.20,000 renewed at 3 months together with
interest @ 18% p.a..
(ii) Shyam requests Mohan to renew his acceptance for Rs.15,000 for 2 months. Mohan
agrees to it provided interest is paid C 10% in cash.

YouTube Channel – Grooming Education Academy 99536 33448, 87502 77038