Draw the specimen of the Bill of Exchange :-
1) Prepare
a Bill of exchange from the following information :
Drawer : Bipinchand
Kothari, Navi Peth, Belgaum.
Drawee : Karimchand
Punawala, 338, Maharaja Road, Solapur
Payee : Kevalchand
Shetti, Mumbai.
Amount : Rs.7,600
Period : Forty
Five Days
Date
of Bill : 12th Sept.
2008
Accepted
on : 16th Sept.
2008
2) Prepare
a Bill of Exchange from the following information :
Drawer : Raj
Patel, 14, New Road, Vijay Nagar.
Drawee : Ram
Parekh, 24, Adalat Road, Vijapur.
Term : Eighty
Days
Date
of Bill : 23rd Sept,
2008
Accepted
on : 26th Sept.
2008
Amount : Rs.7,980
3) Prepare
Bill of Exchange from the following information :
Drawer : Normal M.
Nat, Kothari, Pune.
Drawee : Zonal N.
Patel, Dadar, Mumbai
Amount : Rs.5,400
Term : On
demand
Date
of Bill : 22nd June,
2005
4) Partner Suraj of M/s Sangam and Co., 51, Ram
Nagar, Karad, drew a bill of exchange of Rs.5,000/- on 2nd November,
2008, on Kumar. T., M. G. Road, Mumbai, payable to them two months
after sight. Kumar accepted the same for Rs.4,000/- only on 6th November,
2008.
6) X
sells goods to Y on credit worth Rs.6,000 on June 5, 2005. On the same date he
d draws a bill at three months on Y for Rs.6,000. Y
accepts the bill. On the due date, Y pays cash to X
against the bill.
Give
Journal Entries in the books of X and Y.
7) On 1st January, 2005 P sells
goods to Q worth Rs.10,000. He draws a bill of exchange
on
Q, payable after three months. Q accepts the bill. On 3rd January,
2005 P purchases the goods worth Rs.15,000 from R. P endorses the above bill to
R on the same date and pays the balance. R collects cash on the due date.
Pass
necessary Journal Entries without narrations in the books of P, Q & R.
8) On 1st March,
2005, X draws a bill on Y for Rs.12,000 at three months. Y accepts it.
On 3rd March,
2005, X discounts the bill at 10% p.a. The bill is duly met. Give Journal
Entries in the books of X and Y.
9) Anand
draws a bill of exchange on Kisan for Rs.4,000 on April 1, 2005 payable after
three months. Kisan accept it. On 3rd July Anand sends the bill
to his bank for collection. On the bill date the bank presents it to Kisan and
realises the amount. The Bank charge Rs.15 as collection charges to Anand.
Give
Journal Entries in the books of Anand and Kisan.
10) Ratan
draws the following bills at three months each on 1st October,
2004.
On
‘P’ for Rs.1,000.
On
‘Q’ for Rs.4,000.
On
‘R’ for Rs.6,000.
On
‘S’ for Rs.10,000.
Bill
drawn on ‘P’ is retained by him till its due date. Q’s acceptance is discounted
with the bank for Rs.3,940 on 3rd October, 2004. R’s acceptance
is sent to the Bank for collection on the same date. Bill drawn on ‘S’ is
endorsed to ‘T’ on October 4th, 2004.
On
due date all the acceptors dishonoured the bills.
Give
Journal Entries in the books of Ratan, and also in the books of P, Q, R, S and
T.
11) Anjali of Nagpur sold
goods worth Rs.25,000 to Rupali of Amaravati. On next day Rupali paid Rs.10,000
in cash and accepted two months bill for the balance drawn by Anjali. Anjali
discounted the bill at 12% p.a. with her bank. Before due date, Rupali finds
herself unable to make payment of the bill; and requests Anjali to renew it.
Anjali accepts the proposal on the condition that Rupali should pay Rs.5,000 in
cash and accept new bill for one month along with interest Rs.200 for the
balance. These arrangements were carried through. The bill was met on due date.
Give
journal entries in the books of Anjali. (March ’04)
12) Rajesh
owes Suresh Rs.12,000. Rajesh accepted the bill for 3 months drawn by Suresh for
Rs.12,000. Suresh discounted the bill with his bank at Rs.11,700. On the due
date the bill was dishonoured. Noting charges amounted to Rs.30 paid by Bank.
Rajesh paid half the amount of the bill and full amount of noting charges, and
accepted a bill for the balance including interest Rs.150.
Pass journal entries in
the books of Suresh and show Rajesh’s A/c in his books. (March’07)
13) Vikrant
sold goods to the value of Rs.20,000 to Vishwajeet. Vishwajeet accepted the
bill for Rs.20,000 at three months. Vikrant discounted the bill at 15% p.a.
with his bank. At maturity, the bill was returned dishonoured with Rs.250 as
noting charges. Vishwajeet paid Rs.10,000 and amount of noting charges and gave
Vikrant another bill
at
three months for the balance with interest at 12% p.a.. But before due date,
Vishwajeet became insolvent and he paid 75 paise in a rupee from his private
estate.
Pass
journal entries in the books of Vikrant. (Oct.’06)
14) Jaya sold
goods on credit to Prada for Rs.8,000. Jaya draws a bill on Prada for 3 months
for Rs.8,000; and the same was accepted by Prada. On due date, the bill was
dishonoured, noting charges amounted to Rs.40 paid by Jaya.
Prada
paid half the amount of bill and full amount of noting charges and accepted a
new bill for the balance including interest Rs.200. These arrangements were
carried through. Prada became insolvent and only 50 paise in a rupee could be
recovered from her private estate.
Give
journal entries in the books of Jaya. (Oct.’04)
15) Shailesh
accepted a bill for Rs.4,000 drawn by Kailash at 3 months date, and Kailash got
it discounted with his bank for Rs.3,900. Before the due date, Shailesh
approached Kailash for renewal of the bill. It was agreed that Rs.3,000 should
be paid immediately together with interest on the remaining amount at 10% p.a.
for 3 months, and for the balance, Shailesh should accept a new bill at 3
months. These arrangements were carried through. But afterwards, Shailesh
became insolvent and only 35% of the amount could be recovered from his private
estate.
Pass
necessary journal entries in the books of Shailesh. (March’96)
16) Wagh
bought goods from Landge for Rs.12,000. On the same date, Wagh accepted 3
months bill which Landge endorsed to Kolhe. On the due date, Kolhe informed
Landge that the bill was dishonoured and Rs.50 was paid as noting charges.
Landge then drew a new bill on Wagh including noting charges and interest
Rs.350. Before the due date, Wagh became insolvent and only Rs.3,000 was
recovered from his private estate as first and final dividend.
Give
the journal entries in the books of Wagh. (Oct.’99)
17) Mahesh
draws a bill on Nilesh for Rs.5,000 at 3 months. Nilesh accepts it and returns
it to Mahesh. The bill is discounted by Mahesh for Rs.4,925 with his bank. On
the maturity, Nilesh finds himself unable to pay the bill and requests Mahesh
to renew it. Mahesh accepts the request and draws a new bill at one month for
Rs.5,050 (including interest). Mahesh deposited this new bill with his bank for
collection. On the due date, Nilesh honours the bill.
Give
journal entries and show Nilesh’s A/c in the books of Mahesh. (Oct.’
03)
18) Journalise the following transactions in the
books of Tirupati :
(A) Kailas informed Tirupati that Ameet’s
acceptance for Rs.1,000/- endorsed to him, has
been dishonoured. Noting
charges amounted to Rs.40/-.
(B) Vilas renews his acceptance to Tirupati for
Rs.800/- by paying Rs.400/- in cash and accepted a fresh bill for the balance
plus interest at 12% p.a. for 3 months.
(C) Kalpana’s acceptance to Tirupati for
Rs.6,000/- retired one month before due date at a discount of 10% p.a.
(D) Bank informs Tirupati the dishonoured of
Kavita’s acceptance of Rs.2,500/- discounted with Bank. Noting charges amounted
to Rs.50/-. (March’05)
19) Journalise the following transactions in the
books of Kailash :
(1) Sander
informs Kailash that Vilas’s acceptance for Rs.8,000 endorsed to him has
been dishonoured. Noting charges amounted to Rs.200.
(2) Kaplan
renews her acceptance to Kailash for Rs.7,500 by paying him Rs.3,500 in
cash and accepting a fresh bill for the balance
plus interest at 10% p.a. for 3 months.
(3) Umea retired
her acceptance to Kailash for Rs.3,000 by paying Rs.2,900 in cash.
(4) Kailash
sent a bill of Anita for Rs.6,000 to bank for collection. But bank informed
that the bill has been dishonoured by Anita. (Oct.’98)
20) Journalise the following transactions in the
books of Rahul :
(A) Pradeep informed Rahul that Vijay’s
acceptance for Rs.1,000 endorsed to Pradeep has been dishonoured. Noting
charges amounted to Rs.50.
(B) Nilesh renews his acceptance to Rahul for
Rs.600 by paying Rs.200 in cash and accepting a fresh bill for the balance plus
interest at 12% p.a. for 3 months.
(C) Prashant’s acceptance to Rahul for Rs.3,000
retired one month before due date at a discount of 12% p.a.
(D) Bank informs Rahul as to the dishonour of
Aviraj’s acceptance for Rs.1,000 to Rahul, discounted with bank. Noting charges
amounted to Rs.20. (March’99)
21) Journalise the following transactions in the
books of Sonali :
(A) Sanjay informs Sonali that Mohan’s acceptance
for Rs.16,000 endorsed to Sanjay has been dishonoured. Noting charges amounted
to Rs.400.
(B) Deepali renews her acceptance to Sonali for
Rs.15,000 by paying Rs.7,000 in cash and accepting the fresh bill for the
balance plus interest at 10% p.a. for 3 months.
(C) Usha retired her acceptance to Sonali for
Rs.6,000 by paying Rs.5,800 in cash.
Sonali sent a bill of
Rupali for Rs.12,000 to bank for collection. But the bank informed that the
bill has been dishonoured by Rupali. (March’03)
