Prof. Bhambwani'S Reliable Classes Syjc (Recording) Word File (Chapter Wise) Bills of Exchange

PROF.
BHAMBWANI’S
RELIABLE CLASSES
SYJC (RECORDING) WORD FILE (CHAPTER WISE)
BILLS OF EXCHANGE
LEC 1: THEORY PART I
LEC 2: THEORY PART II
LEC 3: PART III
LEC 4: THEORY ON NOTING CHARGES PART IV
LEC 5: THEORY ON RENEWAL PART V
LEC 6:
Madhav accepted a bill of Rs.40,000 drawn by Kashinath at 3 months.
Kashinath got the bill discounted with his bank for Rs.39,000.
Before the due date, Madhav approached Kashinath for the renewal of the bill. It was agreed to pay
Rs.30,000 immediately together with interest on the remaining amount at 10% p.a. for 3 months
and for the balance Madhav accepted a new bill for 3 months. These arrangements were carried
through. But afterwards, Madhav became insolvent. Only 35% of the amount could be recovered
from his estate.
1. Pass necessary journal entries in the books of Madhav.
2. Prepare Madhav’s a/c in the books of Kashinath.
LEC 7:
Om purchased goods from Lala on credit for Rs.30,000 and accepted a bill drawn by Lala for four
months. Lala discounted the bill with his bank for Rs.28,500. Before the due date, Om approached
Lala with a request to renew the bill. Lala agreed on the condition that Om should pay Rs.23,000
and interest Rs.300 and accept a new bill for the balance. The arrangements were duly carried out.
New bill is met on due date. Pass the journal entries in the books of Lala and Om.
LEC 8:
Wilson draws a bill of Rs 6,000 on Babita on 1st May 1996 for three months. This was for the
amount which Babita owed Wilson. Babita accept the same and returns it to Wilson who discounted
at his bank for Rs.5,850. On 1st August, 1996 Babita requested Wilson to renew the bill and Wilson
agreed on the condition that Rs.1,500 be paid immediately and Babita should accept the new bill
for 3 months for the balance payable plus interest of Rs.60. These arrangements are carried
through.
However On 1st Oct 1996 Babita retired her acceptance for Rs.4,545. Give journal entries in the
books of Wilson and show Babita`s Account in the books of Wilson.
LEC 9:
On lst March, Sonali sold goods to Shilpa worth Rs.16,000 and Shilpa accepted the
bill for Rs.16,000 at 3 months drawn by Sonali who discounted the bill with her
bank at 8% p.a. On due date, the bill was dishonoured and Shilpa requested Sonali
to accept Rs.8,000 immediately and draw upon her a new bill for the remaining
amount at 2 months together with interest at 12% p.a. Sonali agreed. The second
bill was duly honoured.
Give journal entries in the books of Sonali and Shilpa.
LEC 10:
Mangesh drew three bills, of Rs.3,000 on Ramya, Rs.2,000 on Jai Kishan and Rs. 4,000 on Durga.
These bills were duly accepted and returned by related parties.
Jai Kishan`s acceptance was endorsed in favour of Kali in full settlement of his account for
Rs.2,100.
The bill accepted by Ramya was sent to bank for collection. But on the due date the bill was not
honoured, Noting charges Rs.50 paid by the bank. Therefore, Ramya paid Rs.2,100 in cash
including interest of Rs.100 and accepted a fresh bill of Rs. 1050. This second bill was honoured on
the maturity. Durga retired the bill earlier and discount allowed was Rs.150. Pass journal entries
in the books of Mangesh.
LEC 11:
Prabhu sold goods to Dev for Rs.9,000. On the same date Dev accepted a bill at 2 months. Prabhu
endorsed the bill to Sunil. On due date of the bill, Sunil informed to Prabhu that the bill is
dishonoured and noting charges paid Rs. 60.
Prabhu drew a new bill on Dev for the amount due including noting charges Rs 60 and interest
Rs.390. Before the due date of the second bill, Dev became bankrupt and 60 paise in a rupee were
received from his estate as first and final dividend.
Pass necessary journal entries in the books of Prabhu and Deo
LEC 12:
On 10th March, 1986 Deepak drew 4 bills of Rs. 3,000 , Rs 4,500 , Rs. 6,000 and Rs 7,500
respectively due in one month, two month, three month and four month respectively, on Kiran.
Kiran accepted all the bills . Deepak retained the first bill , retired by Kiran before maturity for Rs
2,925 . The Second bill was endorsed to Virendra. The third bill was sent to bank for collection and
fourth bill was discounted with the bank for Rs 7,200. On the due dates except the first bill , all
other three bills were dishonoured. Deepak drew a new bill for Rs 18,200 including interest on
Kiran, which Kiran accepted .On maturity the bill was honoured by Kiran.
Pass necessary journal entries in the books of Deepak and open Deepak`s A/c in the books of
Kiran.
LEC 13:
Journalise the following transactions in the books of Sonya.
A) Anju informs Sonya that Megha's acceptance for Rs.4,000 endorsed to Anju has been
dishonoured, noting charges amounted to Rs.100.
B) Rinky renews her acceptance to Sonya for Rs. 2,400 by paying Rs.800 in cash and accepting
a fresh bill for the balance plus interest at 12% p.a. for 3 months.
C) Swati's acceptance to Sonya Rs.12,000 retired one month before due date at a discount of
12% p.a.
D) Bank informs Sonya as to the dishonour of Asha's acceptence for Rs. 4,000 to Sonya,
discounted with the bank, noting charges Rs. 80.

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PROF.

LEC 2: THEORY PART II

LEC 3: PART III

LEC 4: THEORY ON NOTING CHARGES PART IV

LEC 5: THEORY ON RENEWAL PART V

Pass necessary journal entries in the books of Prabhu and Deo

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